Will Airtel Tigo merger shrink Vodafone?

Tigo and Airtel
Tigo and Airtel

Telecom industry players have posited that the merger of Tigo and Airtel is likely to shrink the subscriber base of Vodafone. This will further worsen their profit levels and may keep them unprofitable for a while.

This situation comes on the back of National Communications Authority’s conditional approval for the merger between Bharti Ghana Limited (Airtel) and Millicom Ghana Limited (Tigo).

This merger will result in an entity which will be the second largest mobile network operations in the country. The merger, which was first announced in March this year, required the regulator to conduct a comprehensive analysis of the application and the regulatory ecosystem. To ensure efficient and equitable distribution and access to the spectrum, the merged entities will have to submit a network integration plan to the Authority which will indicate how they intend to relinquish portions of their total spectrum allocation.

This, however, will be done in phases on geographical area basis and over a period not exceeding eighteen (18) months to avoid disruptions on the network. On the issue of numbers, the merged entity shall retain all the numbering resources held by the merging entities.

The NCA has also requested the merged entity to submit a plan to educate customers about changes and related measures within 30 days from date of merger. The merger approval is also conditioned with an option for Government participation. Based on agreements which have been accepted by the merging entities and the payment of relevant fees, a supplementary agreement to the licences of the merging entities will be signed between the NCA and the merging entities; the day of the signing of the agreement will be the effective date of the merger. The merged entity will have a 3G Licence valid until 25th January, 2024 while their 2G Licence will be valid until 30th October, 2021.

The NCA wishes to assure all stakeholders, especially consumers, that their various interests will be protected and that the Authority will endeavor to maintain stability within the industry.


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