Airtel and Millicom to combine operations in Ghana

Telecom major Bharti Airtel on Friday said it has entered into an agreement with Millicom International Cellular to combine the operations of their subsidiaries in Ghana.

As per the agreement, Tigo Ghana and Airtel Ghana will combine their operations in the African country. Airtel and Millicom would have equal ownership and governance rights in the combined entity.

According to the telecom major, the combined business would serve nearly 10 million customers, 5.6 million of whom are data customers. 

The new entity would cover more than 80 per cent of Ghana's population with high speed data, providing the widest 3G coverage across the country, and would have revenues close to $300 million.

The company added that the transaction is subject to obtaining approvals from the relevant authorities in Ghana and the satisfaction of customary closing conditions.

"The coming together of the two entities will benefit customers, who can now enjoy an extensive combined network and a wider range of affordable and innovative products and services," said Raghunath Mandava, Managing Director and Chief Executive Officer of Airtel Africa.

"It will further strengthen our position in the market and offer huge benefits arising out of synergies in operations, resulting in better experience for the customers."

The telecom major elaborated that combined operations will give a major boost in both rural and urban network coverage -- in turn translating into better voice quality, high speed data services and reinforced network stability. 

Airtel cited 'Mobile Financial Services' as one of the areas which will be greatly enhanced with the combined agent networks and platforms.

The announcement was made after the market hours. The company's scrip on the BSE closed the day's trade down 0.22 per cent to Rs 355.60 from its previous close of Rs 356.40.