The minority caucus in Ghana’s Parliament has launched a blistering attack on the government’s handling of AT Ghana’s future, accusing Communications Minister Samuel George of abandoning a fully financed $150 million rescue package from Canadian firm Rektron in favor of what they describe as a “questionable” $50 million merger with debt laden Telecel.
At a press conference Wednesday, October 15, the opposition lawmakers called for President John Mahama’s direct intervention and a comprehensive parliamentary inquiry into what they characterize as secretive dealings that risk collapsing the country’s only wholly state owned telecommunications operator.
“We ask President John Dramani Mahama to rein in his Minister for Communication to focus on making AT work rather than hastily trying to dispose of it,” stated Matthew Nyindam, ranking member on Parliament’s Communications Committee. “A comprehensive and transparent investigation into the circumstances surrounding the proposed acquisition of AT by Telecel is imperative.”
The intervention marks the most serious political challenge yet to the government’s strategy for salvaging AT Ghana, formerly AirtelTigo, which has hemorrhaged more than $10 million in the first eight months of 2025 and faced service shutdowns over unpaid debts.
At the center of the controversy lies a May 21, 2025 memorandum of understanding between the government, Rektron Group Incorporated, and local partner Afritel Ghana Limited. Under that agreement, Rektron proposed acquiring a 60 percent controlling stake in AT for $150 million, backed by what the company describes as a “fully funded” package comprising cash, credit lines, and guarantees.
Beyond immediate capital injection, Rektron outlined an ambitious long term investment plan totaling up to $1 billion over five years to modernize AT’s infrastructure, expand its 4G and 5G capacity, upgrade network equipment with Tier-1 technology vendors, and create local jobs. The proposal also included provisions for technology transfer and increased Ghanaian participation in the telecom value chain through partnerships with local firms including K-NET Ghana.
Rektron CEO Atanas Kolarov has publicly emphasized that the bid is “not a speculative initiative” and indicated the company has already opened constructive negotiations with AT’s creditors, who are reportedly eager to collaborate on debt restructuring.
However, according to the minority, Minister George sidelined this comprehensive proposal and instead pursued a merger arrangement with Telecel valued at just $50 million for network upgrades post consolidation, a figure the opposition says defies economic logic.
“How does one reject a US$150 million investment proposal with a billion dollar expansion plan for a deal that brings only US$50 million to the table?” Nyindam questioned. “It defies logic and sound reasoning that the Honourable Minister would consider a $50 million network upgrade by Telecel after the supposed consolidation as sufficient to sustain both companies yet dismiss a $150 million initial investment and up to a total of $1 billion over the next five years.”
The minority accused the minister of fiscal mismanagement for failing to honor a $5 million payment obligation to American Tower Company, a key infrastructure provider to AT. The non payment led to ATC beginning to disconnect power to AT’s tower sites starting September 1, forcing the company’s 3.2 million subscribers to roam on Telecel’s network.
This service disruption allegedly cost AT approximately GH¢7 million, about $472,000, in revenue losses in just one month and raised questions about whether the crisis was engineered to make the Telecel merger appear inevitable.
“We have established that the Minister of Communications and Digitalisation failed to honour a $5 million payment obligation to the American Tower Company, a key service provider to AT,” Nyindam stated. “As a result of the non payment, several tower sites were shut down in September, forcing AT customers to roam on Telecel’s network.”
The opposition also questioned why official social media announcements about the Telecel merger were mysteriously deleted shortly after public backlash emerged. Both the Ministry’s pages and Telecel’s LinkedIn account removed posts about the deal without explanation, according to the minority.
“Why announce a merger publicly only to pull it down later? The secrecy and confusion surrounding this deal raise legitimate concerns about what the minister is hiding,” they stressed.
The minority cast serious doubt on Telecel’s financial capacity and track record. They pointed out that Telecel failed to deliver on a $500 million investment promise made when Telecel Group acquired a 70 percent stake in Vodafone Ghana in February 2023, completing the rebrand to Telecel Ghana in February 2024.
Moreover, they alleged that Telecel currently carries approximately $400 million in debt, raising questions about how a heavily indebted company could effectively inject capital into another struggling operator.
“Telecel’s own track record does not inspire confidence,” the minority noted. “The company failed to deliver on its US$500 million investment promise when it acquired Vodafone Ghana and is currently indebted to the tune of US$400 million.”
They described the proposed Telecel merger as “technically, operationally, and financially unconscionable,” warning that it could undermine market competition, threaten hundreds of jobs, and erode national value in the telecommunications sector.
“AT is a strategic national asset that must be safeguarded. We cannot allow a deal that jeopardises 300 employees, 200 contract staff and over 10,000 indirect jobs,” Nyindam concluded.
The government’s position, as articulated by Minister George during a September 4 staff engagement at AT’s Accra headquarters, is that the merger represents the most viable path to save the company from collapse and create a stronger second national operator capable of competing with market leader MTN Ghana.
George assured AT’s 300 permanent staff that their contracts would continue uninterrupted. “This is not a re application process. Every single employee will be absorbed unless you personally decide to leave,” he said, adding that customers should expect no service disruption during the transition.
The minister emphasized AT’s dire financial condition as justification for urgent action. According to his figures, the company has already consumed more than $10 million of public funds in the first eight months of 2025, making the status quo unsustainable.
Market data from Ghana’s National Communications Authority underscores why consolidation holds appeal for policymakers. At the end of the second quarter of 2025, MTN Ghana controlled 73 percent of the market with 29.5 million subscriptions. Telecel held 18 percent with 7.6 million users, while AT Ghana commanded just 8 percent with 3.3 million subscribers.
A merged Telecel-AT would command approximately 26 percent of subscriptions, creating what proponents argue would be a clearer counterweight to MTN’s overwhelming dominance. The combined entity would have roughly 10.9 million subscribers, though skeptics question whether simply adding two struggling operations creates a viable competitor.
MTN has continued to widen its market lead. In its first quarter 2025 results, the MTN Group reported 19.8 percent year over year service revenue growth, with Ghana contributing 13.9 percent of the increase. The company’s 4G population coverage reached 99.3 percent, and MTN has invested more than $1 billion in its Ghana network over the past five years, according to CEO Stephen Blewett.
This massive infrastructure advantage makes the competitive challenge facing any merged Telecel-AT entity daunting, even with successful integration.
The government appointed KPMG as transaction advisor with what was initially described as a strict 60 day deadline to assess both the Rektron proposal and the Telecel merger option, then recommend the best path forward. However, the minority alleges that after appointing KPMG and announcing the Rektron deal, the minister suddenly shifted course without consultation or clear justification.
“After announcing a deal with Rektron/Afritel and appointing KPMG as transaction advisors, the minister suddenly shifted to a merger plan with Telecel without any consultation or clear justification,” the group said.
The opposition has not clarified whether KPMG completed its assessment or what recommendations the advisory firm provided, adding to the opacity surrounding the decision making process.
AT Ghana’s troubled history provides important context for the current crisis. The company emerged from a 2018 merger between Bharti Airtel Ghana and Millicom’s Tigo Ghana, itself an attempt to create scale in a market dominated by MTN. The joint venture between Bharti Airtel and Millicom International Cellular never achieved profitability and recorded losses for several consecutive quarters.
In October 2020, facing continued financial difficulties, Bharti and Millicom sold the company to the Ghanaian government for a nominal $1. The acquisition included all customers, assets, and agreed liabilities, a transaction driven by Airtel’s strategic decision to exit markets where it wasn’t among the top two players.
However, Minister George himself condemned the handling of that 2020 transaction in March 2025, describing the terms as deeply problematic. “The debt sitting on the books of AirtelTigo exceeds GHS3.5 billion, about $342 million. So, if someone told you that they bought it for $1, who is going to pay the GHS 1.3 billion, roughly $127 million, that is sitting there and accumulating interest?” he asked rhetorically.
This inherited debt burden, combined with operational losses, has left AT in precarious financial condition despite government ownership. The question facing policymakers is whether merger or new investment offers the better path to viability.
The minority’s concerns extend beyond immediate financial considerations to broader implications for Ghana’s digital infrastructure agenda. They expressed worry about potential impacts on the World Bank funded Digital Acceleration Project and other initiatives aimed at expanding broadband access and modernizing digital public services.
The Digital Acceleration Project, approved by the World Bank in April 2022 with $200 million in financing, aims to increase access to mobile internet and broadband services for 6 million people by encouraging private sector investment in last mile connectivity in underserved rural areas.
Successful implementation of these digital infrastructure initiatives depends partly on having viable telecommunications operators with capacity to invest in network expansion. Critics worry that a botched merger or collapse of AT could undermine these broader development objectives.
“The Minority also expressed concerns about potential job losses, the collapse of competition in the telecom sector, and the impact on ongoing national digital infrastructure projects, including the World Bank funded Digital Infrastructure Venture Project,” according to parliamentary coverage of the press conference.
The opposition has outlined specific demands, including immediate suspension of the ongoing consolidation process, a comprehensive parliamentary inquiry into the transaction circumstances, full disclosure of all agreements and correspondence related to both the Rektron/Afritel and Telecel negotiations, release of KPMG’s transactional advice and recommendations, and a thorough financial assessment of AT Ghana to determine actual debt levels and resolve the American Tower Company impasse.
Notably, they’re also calling for President Mahama’s personal intervention, suggesting they view Minister George’s handling of the matter as sufficiently problematic to warrant oversight from the highest level of government.
“We will not sit idly by and allow a single minister to unilaterally dispose of a critical national asset such as AT. The strategic importance of this company to our digital sovereignty and economic development cannot be overstated,” the minority stated.
The standoff raises fundamental questions about decision making processes for strategic national assets. Ghana’s telecommunications sector plays a crucial role in the country’s broader digital transformation agenda, with implications for financial inclusion, e-government services, digital entrepreneurship, and economic competitiveness.
How such decisions are made, what criteria are applied, and who has authority to commit the country to particular courses of action all carry significance beyond this single transaction.
For Rektron and its CEO Atanas Kolarov, the situation represents a frustrating reversal after signing a memorandum of understanding with the government and beginning creditor negotiations. The Canadian company maintains its offer remains on the table and that its proposal offers superior value, but appears to have lost traction within government decision making circles.
For Telecel Ghana, which rebranded from Vodafone Ghana less than two years ago, the proposed merger offers potential scale benefits and government backing, but also saddles the company with AT’s substantial debt burden and operational challenges.
For AT’s 300 permanent employees, 200 contract staff, and thousands of indirect workers in the ecosystem around the company, the uncertainty creates anxiety about job security regardless of which path the government ultimately chooses.
And for Ghana’s 3.2 million AT subscribers, many in underserved areas where AT provides the primary coverage, the risk is potential service deterioration or loss of their operator entirely if the situation is mishandled.
The immediate next steps remain unclear. The minority has issued its demands and called for parliamentary inquiry, but the government has not indicated whether it will accede to those requests or proceed with its chosen course despite opposition objections.
Minister George’s office had not responded to requests for comment by press time. Telecel Ghana declined to comment on the minority’s allegations, while Rektron representatives could not immediately be reached.
The controversy reflects broader tensions in Ghana’s telecommunications sector about the appropriate balance between market forces, government intervention, national ownership, and foreign investment. It also highlights the challenges developing countries face in managing strategic infrastructure assets amid competing economic and political pressures.
As the dispute plays out, Ghana’s telecommunications landscape hangs in the balance. Whether AT Ghana emerges strengthened through merger, revitalized through new investment, or weakened further through continued uncertainty will have lasting implications for competition, service quality, and digital inclusion in Africa’s telecommunications sector.
For now, the only certainty is that AT’s future remains deeply uncertain, caught between competing visions, political maneuvering, and the harsh economic realities of trying to compete in a market where one player controls nearly three quarters of all subscribers.
Source: newsghana.com.gh
