Airtel said to be in talks with Millicom International Cellular for Possible Merger in Ghana

AIRTEL

Airtel is reported to be holding talks with rival company, Millicom International Cellular, for a possible merger in Ghana. Millicom, which offers services to customers under the brand name Tigo operates in five African markets including Ghana.

Image Credit: © NLIPW
Image Credit: © NLIPW

Economic Times is reporting that the merger may be structured to replace Vodafone and the combined entity may become the second largest telecom operator in Ghana, with South Africa-based MTN leading the pack.

Airtel Ghana contributes 6-7% to Bharti Airtel’s Africa revenue, which totaled close to $900 million for the July-September quarter. Net loss for Airtel’s Africa operations narrowed during the quarter to $91 million from $170 million a year earlier.

Ghana is Tigo’s second largest market by subscribers.

According to Ghana’s National Communication Authority, Airtel held a 15.71% market share for mobile data market with nearly 3.1 million users as of October end, while Tigo had a 14.71% share, or 2.9 million users. Vodafone held a 17.91% market share with more than 19.4 million subscribers.

Of the over 37.4 million voice users in Ghana, Vodafone had a market share of 21.86% at the end of October, while Tigo held 14.35%, or 5.4 million users. Airtel had a 12.54% share and more than 4.7 million users.

Merger activities in the telecoms sector may ramp up this year as operators deal with changes in market including high tariffs.

Source: Economic Times

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About Bob Aroture 500 Articles
Bob is a Senior Editor and Content Development Manager at Nigerian Law Intellectual Property Watch. He holds a BS degree, with a major in biochemistry. He works directly with the Newsroom Team. His focus areas are technology and innovation, and pharmaceutical technology. Email: baroture@nlipw.com