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Government’s AT–Telecel Merger Plan Faces Doubts from Industry Expert

Comfort Sweety Hayford by Comfort Sweety Hayford
3 months ago
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A digital marketing strategist, Maximus Ametorgoh has cast doubt on the government’s proposed merger between AT and Telecel Ghana, arguing that the move is unlikely to strengthen competition in the country’s telecom sector.
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A digital marketing strategist, Maximus Ametorgoh has cast doubt on the government’s proposed merger between AT and Telecel Ghana, arguing that the move is unlikely to strengthen competition in the country’s telecom sector.

Speaking in an interview with Joy Business, Mr. Ametorgoh said, “As an industry person, I don’t think it’s going to solve the problem or cure the problem that the minister wants to cure. AT and Telecel both have their own peculiar issues that explain why they are not market leaders.”

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He noted that despite the restrictions placed on MTN as a Significant Market Power (SMP), the network continues to dominate, noting that “We all know that MTN is leading the market, even with the whole embargo on them. Somebody once said Ghana has one and a half telecom providers: MTN, and the other half. So I don’t know to what extent merging AT and Telecel will create competition with MTN.”

According to him, building a brand with the strength and reach of MTN takes years of consistent innovation and investment.

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“Over the years, we’ve seen what MTN has done expanding infrastructure across the country, introducing micro-bundling, and flexible call and data packages. They initiated these innovations and built a strong brand identity. AT and Telecel do not have that same competitive power,” he explained.

Mr. Ametorgoh further argued that the merger appears to be driven by government investment considerations rather than long-term profitability or industry competitiveness.

“For me, I think because of government investment in the telcos, that’s why they are merging the two. But if you are thinking profitability and knowledge transfer, I would prefer moving it to an MTN than to Telecel,” he stated.

Read More @ ATLFMNEWS.COM/ATLFMNEWS

Tags: ATATLFM NEWSComfort Sweety HayfordTelecel
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Professor of Finance and Economics at the University of Ghana, Godfred Bokpin, has reassured Ghanaians that the recent decline in the performance of the cedi is manageable and should not cause panic.

Seasonal Trends Behind Cedi Weakness, Not Fundamentals – GCB Research Manager

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