Indian telecommunications giant – Bharti Airtel – has decided to end its operations in Ghana.
The telecommunications company is having talks with the government of Ghana, and the agreement is in the advance stage.
India’s second largest telecom operator – Bharti Airtel, which owns a non-controling 49.95% of AirtelTigo will be selling 100% of its stake in the telco to the Ghanaian government.
In a filing by Airtel, the telecommunications company noted that the board have approved the transaction, “along with all customers, assets and agreed liabilities.”
The Ghanaian government will then take over the temporary operation of the assets, and help protect the jobs of employees, and the Interests of customers and stakeholders.
Since 2017, Bharti Airtel has been doing business in Ghana under the brand name AirtelTigo, in partnership with Millicom, which is headquartered in Luxembourg.
According to a report by Livemint, due to high cost of operations, Airtel Africa recorded an 8.8% year-on-year (yoy) drop in net profit to $88 million in the quarter which ended September. The company recorded a net profit of $57 million in the quarter ended June.
According to data published by Ghana’s National Communications Authority, as of March 2020, AirtelTigo controls 15.81% shares of voice subscribers, and a 20.25% share in data subscribers.
With the presence of 52 internet service provider, MTN Ghana, controls 67% of the market share, making it the biggest telecommunications company in the country.
MTN Ghana also has about 57% of the market share in voice communication, giving it the lead over Vodafone, Glo, and AirtelTigo.
Airtel Africa, the holding firm for Bharti Airtel in Africa, has its presence in 14 countries, including Nigeria and Kenya. The company draws over half of its revenue from the Nigerian market.