$150m AirtelTigo Debt: Government engages transaction advisor on future of state-owned telco
Government has appointed the international audit and advisory firm, KPMG, as transaction advisor to provide guidance on the future of AT Ghana, the state-owned telecommunications company which is currently saddled with a debt of more than $150 million.
The move follows a deepening crisis between AT Ghana and its tower operator, ATC Ghana, over non-payment of charges which culminated last week in the disconnection of power to AT’s radio access networks nationwide.
The action by ATC, which stemmed from the telco’s long-standing indebtedness, threatened to plunge over three million subscribers into a nationwide communications blackout.
Solution
To prevent this crisis, the Minister of Communication, Digital Technology and Innovations, Samuel Nartey George, at a press conference last week Friday, announced that the government, acting through the National Communications Authority (NCA), had directed AT and Telecel Ghana to immediately establish a national roaming agreement to safeguard consumers and ensure continuity.
“It is important to note at this point that all of AT's services, and I'll be clear here, voice, SMS, data and AT money remain intact,” he stated.
He praised the technical teams of both operators for “exceptional skill and commitment” in executing the integration under very challenging conditions, describing it as proof of the technical expertise available in the Ghanaian telecom space.
Mr George further disclosed that KPMG had been given a strict 60-day timeline to complete its advisory work, which will cover the restructuring of AT and government’s shareholding in Telecel Ghana.
The overarching goal, he explained, was to establish a strong second operator to rebalance the country’s mobile market, which had long been dominated by MTN.
Not merger or acquisition
The Communication Minister clarified widespread media speculation that the ongoing developments amounted to a merger or acquisition.
“This is not a merger. It is also not an acquisition.
We are dealing with a faux-merger situation and the work of the transaction advisor.
For emphasis, I repeat, what is happening and playing out is not a merger and neither is it an acquisition.,” he explained.
The final pathway for AT Ghana, he said, would be shaped by the recommendations from KPMG’s report and subsequent consideration by government.
Until then, he urged stakeholders – including subscribers, tower companies, suppliers and creditors – to await the outcome of the advisory work for clarity on outstanding debts, services and the company’s future.
Staff assurances
On the fate of AT’s workforce, Mr George was emphatic that no jobs would be lost.
“The government will ensure that the approximately 300 permanent staff of AT retain their employment.
There will be no job losses.
I have already met with the staff and offered them assurances in this regard,”
He further disclosed that the transaction advisor had been tasked to also consider the fate of over 200 contract staff.
“I am fully aware of the gravity of the current situation on the workers, their families and their dependents, but I remain committed on behalf of the government to protect them from any adverse situation,” the Minister added.
