ill AT (formerly AirtelTigo) survive in the long term in Ghana?
AT (formerly AirtelTigo) is one of the telecom operators in Ghana, formed by the merger of Airtel and Tigo in 2017. The company which recently rebranded is not in a great space especially when competing with its competitors namely MTN and Vodafone.
However, in recent years, AirtelTigo has faced several challenges that have affected its performance and profitability.
Current Challenges
AT has struggled to keep up with the changing customer preferences and demands and has lost some of its subscribers to its rivals.
According to data from the National Communications Authority (NCA), AT’s market share in 2022 dropped to 14.06% compared to its high of 25.14% in 2018.
AT is also faultering in the Mobile Money space.
According to recent data from the Ghana Chambers of Communication, AT’s marketshare in the mobile money space in 2022 was just 2%, trailing behind its rivals MTN, Zeepay and Vodafone.
Ownership
The compay is also facing uncertaintity when it comes to the ownership and management of AT. In 2021, the parent company of AirtelTigo, Bharti Airtel officially sold of its shares of the company to the Government of Ghana and transferred ownership.
Apart from a recent announcement of its eSIM product, AT hasn’t put forth any strategic direction or growth plans for the near feature on how it will compete with its competition.
AT is facing a tough situation in Ghana’s telecom market, where it has to compete with stronger rivals, cope with high costs, and deal with ownership issues. The company needs to find a way to overcome these challenges and improve its performance and profitability, or else it may risk losing its relevance and position in the market.