In Accra’s vibrant commercial core, mobile phone vendors are common, and data bundles are traded like currency. Among the plethora of options, one logo dominates: MTN.
This South African telecommunications giant’s yellow brand is so prevalent in Ghana that many locals refer to mobile service simply as “MTN,” regardless of their provider.
This overwhelming presence is exactly what the Ghanaian government aims to change through its recently announced merger of struggling state-owned AT Ghana with the privately held Telecel Ghana. This strategic move has the potential to significantly reshape the telecommunications landscape in West Africa.
Ghana’s telecommunications sector serves as a compelling example of market concentration. Unlike many developed countries that typically host three to four competitive entities, Ghana has devolved into a near-monopoly. MTN commands an estimated 77% market share, leaving its rivals to compete for the remaining 23%.
“A market dynamic like this is unparalleled in comparable African countries,” shares a senior telecommunications analyst, who prefers to remain anonymous due to client obligations. Competition exists in nations such as Nigeria, South Africa, and Kenya. In Ghana, it’s essentially MTN and a handful of others struggling to survive.”
This lack of competition carries significant ramifications for consumers. Mobile data prices in Ghana remain among the highest in West Africa relative to income levels, while network quality outside urban centres often falls short of regional standards. The absence of robust competition has stifled innovation and led to stagnation in customer service improvements.
The merger between AT Ghana and Telecel Ghana aims to create a combined entity that serves approximately 5.5 million subscribers and holds a theoretical market share of around 26%. Although this still pales compared to MTN’s dominance, it would mark the most significant challenge to the incumbent’s position since the market was liberalised 20 years ago.
Ghana’s transition to government ownership is a cautionary tale, reflecting the challenges faced by telecommunications markets in developing economies. The company originated from the 2017 merger of Airtel and Tigo, two historically independent networks.
Tigo was Ghana’s first mobile cellular operator, launched in the early 1990s, when mobile phones were still considered a luxury item. Airtel’s Ghanaian presence emerged through Westel, a government-backed initiative that struggled considerably before undergoing multiple foreign ownership transitions.
Despite inheriting seasoned networks and a large subscriber base, the merged AirtelTigo entity failed to achieve the expected scale. Its market share steadily declined from 25.8% in 2018 to 8% by late 2024, as customers gravitated towards MTN’s superior coverage and Vodafone’s enterprise services.
The Ghanaian government’s acquisition of AT Ghana for one symbolic dollar underscored the realisation that private market forces alone could not establish competitive alternatives to MTN. Instead of allowing AT Ghana’s collapse to further concentrate the market, the state opted for intervention.
Telecel Ghana provides a more sustainable foundation for these government aspirations. With an approximately 18% market share, it has demonstrated a greater ability to withstand MTN’s dominance by actively investing in its network infrastructure.
The technical integration process commenced months before the official merger announcement, with AT Ghana’s 3.2 million subscribers already utilising Telecel’s network. This prior coordination should streamline the operational merger while enhancing service quality for AT customers who have faced network reliability concerns.
Communication Minister Sam George’s assurance that all 300 AT employees will retain their positions reflects the government’s commitment to priorities beyond financial gain. This merger serves multifaceted policy goals: ensuring job security, fostering market competition, and demonstrating the government’s capacity to manage vital infrastructure.
The government’s commitment of approximately US$600 million to support this merger represents a substantial public investment in enhancing telecommunications infrastructure. This funding far exceeds the symbolic dollar spent to acquire AT Ghana, illustrating the true expense of developing competitive alternatives in highly concentrated markets. Industry observers are closely monitoring the implications of this endeavour for the future.
