LAHORE – Competition Commission of Pakistan (CCP) okayed Pakistan Telecommunication Company Limited (PTCL) for its acquisition of Telenor Pakistan after successful completion of Phase II of the regulatory review.
PTCL thanked Commission for its meticulous assessment, stressing importance of safeguarding the sector’s long-term sustainability. The telecom giant also thanked customers, partners, and the wider telecom community for their anticipation of this historic deal.
The company has fully cooperated with the Commission throughout the process and remains committed to advancing the acquisition in full compliance with all regulatory and legal requirements, and this merger shows pivotal step for Pakistan’s telecom market, combining the capabilities of PTML (Ufone) and Telenor to deliver superior customer experiences, enhanced network quality, wider coverage, and innovative digital services.
Analysts believe consolidation could boost efficiency, strengthen infrastructure, and introduce more competitive landscape, aligning with the government’s vision of a digitally empowered Pakistan.
PTCL board formally accepted CCP’s terms and conditions for $40 billion acquisition, clearing path for Commission to issue its final order. The combined Ufone-Telenor Pakistan entity is now poised to rival Jazz in size, leaving Zong as the third-largest operator in the country.
The approval process, faced multiple hurdles over the past 1.5 years and key delay was linked to pending payment initially set at $800 million by UAE-based telecom group, later reduced to $650 million, alongside PTCL’s requirement to submit a future investment plan. CCP officials repeatedly warned that merger could create a highly concentrated operator, raising potential risks of market dominance and abuse. Conditional safeguards have been proposed to address these concerns, covering pricing, interconnection, infrastructure sharing, and fair competition.
The Commission also flagged numerous gaps in PTCL’s submissions, citing incomplete or unclear information regarding international direct dialing (IDD) data, colocation revenues, IP bandwidth, and domestic private leased circuits (DPLC). In many instances, data for Ufone was detailed while comparative information for competitors was missing or vague, raising concerns of preferential treatment and potential cross-subsidization.
With both PTCL and Ufone currently reporting losses, the regulator demanded clarity on funding for network modernization, 5G spectrum acquisition, and capital expenditures.
Despite repeated requests, PTCL’s responses were often generic, prompting CCP to reserve the right to draw adverse conclusions if precise data is not provided. Industry insiders warn that unless PTCL offers full transparency and a clear financial roadmap, the merger.
