by Stephen Kwabena Effah

October 2, 2017

NCA approves Tigo-Airtel merger, becomes second largest in Ghana

The merger was first announced in March this year.

The merger between Airtel Ghana and Tigo Ghana has been approved by the National Communications Authority (NCA)

The approval of the merger, which will create the second largest mobile network in Ghana, is subject to some conditions, the NCA announced in a statement issued Monday.

“Based on agreements which have been accepted by the merging entities and the payment of relevant fees, a supplementary agreement to the licences of the merging entities will be signed between the NCA and the merging entities,” the NCA said

It stated that the day of the signing of the agreement will become the effective date of the merger.

The entity would have a 3G licence that will be valid until January 25, 2024 while their 2G licence will be valid until October 30, 2021.

The merger was first announced in March this year, and required the regulator, NCA, to conduct a comprehensive analysis of the application and the regulatory ecosystem.

Conditions

To ensure efficient and equitable distribution and access to the spectrum, the merged entities will have to submit a network integration plan to the Authority which will indicate how they intend to relinquish portions of their total spectrum allocation.

This, however, will be done in phases on geographical area basis and over a period not exceeding 18 months to avoid disruptions on the network.

On the issue of numbers, the merged entity shall retain all the numbering resources held by the merging entities.

The NCA has also requested the merged entity to submit a plan to educate customers about changes and related measures within 30 days from date of merger.

‘The merger approval is also conditioned with an option for Government participation,” the NCA stated.

It has meanwhile assured all stakeholders, especially consumers, that their various interests will be protected and that the Authority will endeavour to maintain stability within the industry.

By 3news.com|Ghana

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