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.
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