Tigo's MD to head new entity under Airtel/Tigo merger - Citifmonline

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Citi Enterprise Information has gathered Tigo’s present MD, Ms. Roshi Motman is more likely to be named because the MD of the brand new entity to be created following the merger of Airtel and Tigo.

It's unclear but which place the present MD of Airtel Ms. Lucy Quist can be occupying following the merger.

The father or mother firm of the 2 telecom operators early this month – March, formally introduced their merger in Ghana.

The merger between the 2 is more likely to push the brand new entity to the quantity two spot of main telecom operators in Ghana, after MTN, which is the at present the most important telecom operator in Ghana.

Underneath the merger, the 2 corporations shall be holding an equal share within the new stake.

The merger of the 2 corporations is nevertheless topic to acquiring approval from related authorities in Ghana and the satisfaction of customary closing circumstances and is predicted to take months and even possible a yr to finish.

Throughout that interval, the 2 leaders; Ms Motman and Ms Quist are anticipated to work collectively for the consolidation of the brand new entity.

Employees casualties

Citi Enterprise Information’ checks reveal that there's more likely to be some job cuts following the merger.

It isn't clear which positions and departments might be affected in each entities however the transfer has turn out to be essential to keep away from a potential duplication of roles.

Citi Enterprise Information has gathered Airtel will today- March 14, 2017 handle its employees on the best way ahead following the merger.

This isn't the primary time the 2 corporations shall be hit with layoffs; the telecom business within the latter a part of 2015 and early 2016, was hit with main layoffs and resignations as telecom corporations restructured to remain in enterprise.

The business employs over 5,000 individuals immediately, and about 1.5 million individuals not directly.

Staff of Tigo and Airtel on the time have been the worst hit by the layoffs.

Airtel Ghana for instance in late 2015 laid off quite a few its staff in what  was described as a restructuring train.

Although it nonetheless stays unclear, which arms of the corporate have been affected and the way many individuals have been  made to go house, Citi Enterprise Information checks reveled majority of the employees left by the top of January, 2016.

Aitel Ghana is just not the one telecom operator to have made that transfer, Tigo Ghana in February, 2016 despatched scores of its staff residence following a serious restructuring train.

The dismissals affected the corporate’s business, advertising, name centre, PR, HR and procurement wings amongst others.

Tigo in mid 2014 launched into comparable transfer.

Reactions from Business over merger

In the meantime there seems to be some degree of combined response within the business on the merger.

CEO of MTN Ghana Ebenezer Asante chatting with Citi Enterprise Information on the merger and the way it will have an effect on its operations stated ”It’s a wedding, it should evolve and we'll see and we will solely reply once we know the precise form and type of that marriage. So early days but, let’s see the way it evolves and we'll reply accordingly”.

The merger which is the most important of its variety within the historical past of the nation is predicted to extend competitors within the business.

The merger will depart Ghana with 4 different Cellular Community Operators (MNOs), MTN, Vodafone, Glo and Expresso.

Income within the Ghana’s telecom business has been declining for a while as numerous challenges together with Ghana’s energy crises, excessive value of operations and low tariffs for telecom operators proceed to harm telecom operators.

Challenges in telecom Business

The telecom sector has been a difficult one for a while.

Majority of the operators are unable to interrupt even, not to mention make income.

A lot of them had earlier advised Citi Enterprise Information they're but to recoup investments they made within the sector.

In accordance with gamers within the business, the sector is struggling to remain afloat as income dip and competitors will increase.

Ghana’s current energy disaster and hikes in utility tariffs is reported to have eaten away a piece of their revenues.

MTN lately revealed it intends to spend no less than 48 million cedis in 2016 because of the utility hikes.

Whereas sim field fraud, theft of batteries at cell websites, low penetration of knowledge, financial challenges together with energy disaster, cedi depreciation, foreign exchange volatilities  amongst others have hit arduous on the operations of telcos, overcrowding of the business has additionally affected returns of gamers.

A participant within the business who spoke to Citi Enterprise Information on situation of anonymity stated ‘a lot of the telecom corporations are struggling, the sector shouldn't be as worthwhile as earlier than, excluding MTN the remaining are nearly on their knees’.

MTN Ghana’s CEO on March 10, 2016 delivering a presentation on the corporate’s efficiency for 2015 stated ‘a few of the telecom corporations do not make cash, so they don't seem to be paying company tax.’

The business has nevertheless been rated as a profitable one for a while, justifying the present tax regime slapped on it by authorities.

By:  Vivian Kai Lokko/citifmonline.com/Ghana

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