Govt to Launch Bold AirtelTigo Turnaround Plan in 8 Weeks
Government to Roll Out Strategic Turnaround Plan for AirtelTigo Within Eight Weeks — Sam George
Within the next eight weeks, the Ministry of Communications, Digital Technology, and Innovation of the Government of Ghana is expected to present a thorough turnaround strategy for AirtelTigo (AT), a financially troubled telecoms firm. Along with senior ministry officials, Minister Samuel Nartey George made this announcement during a recent familiarization visit to the company’s headquarters.
Mr. George stated that the state is actively working on AirtelTigo’s debt restructuring plans and is looking into new alliances that might provide more funding and technical assistance. Repositioning the business as a lucrative, competitive force in Ghana’s telecom sector is the goal, he stated. Although he conceded that difficult choices would need to be made along the way to recovery, he insisted that doing so would benefit the company and its stakeholders in the long run.
The minister characterized the previous government’s $1 acquisition of AirtelTigo as a rash decision that left the company with obsolete infrastructure and more than $400 million in debt. Even though the debt has already been down to $200 million, the company still loses GH¢20 million every month, underscoring the need for a strategic intervention. Mr. George stressed that the turnaround plan will put the well-being of the company’s 300 permanent employees, 200 contract workers, and almost 10,000 indirect employment first. He affirmed that preserving jobs will continue to be a key component of the reform process and praised the workers for their tenacity.
Regarding spectrum allocation, Mr. George explained that telecom spectrum is a national asset that needs to be paid for, adding that AirtelTigo’s present financial situation may make it more difficult for it to quickly acquire more spectrum. To determine appropriate use and future allocations, the Ministry is conducting a spectrum rationalization exercise. He was certain that the government, led by President Mahamudu Bawumia, a former Communications Minister, would successfully stabilize the business, turn it into a self-sustaining enterprise, and eventually turn it into a major force in Ghana’s digital economy.
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Source: Graphic Online.
