Karachi (TDI): Pakistan’s telecom industry is set for a major shake‑up after the Competition Commission of Pakistan (CCP) approved PTCL’s acquisition of Telenor Pakistan in a deal valued at approximately $400 million.
The approval caps off a protracted regulatory review process. The CCP had initiated a Phase II review due to concerns over competition, market dominance, and financing transparency.
The regulator applied its Substantial Lessening of Competition (SLC) test across multiple telecom segments, including mobile, fixed‑line, and long distance markets, before ultimately granting clearance with conditions.
As a result of the merger, PTCL’s mobile arm Ufone will be combined with Telenor Pakistan, making the new entity the country’s second‑largest mobile operator by scale.
PTCL lauded the decision, saying that the integration is a “pivotal step forward” for Pakistan’s telecom industry, promising improved customer experience, better network coverage, and greater operational efficiencies.
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The consolidation comes amid mounting financial and regulatory pressures in the sector. High spectrum fees, thin profit margins, and heavy capital expenditure burdens have strained existing operators.
In this context, combining resources is viewed by PTCL and its supporters as a way to gain economies of scale, reduce duplication, and better absorb the costs of infrastructure expansion and modernization.
Regulators and competitors will likely scrutinize how the merged entity behaves in terms of pricing, quality of service, and market dominance.
The CCP’s conditions may include oversight or behavioral remedies designed to prevent abuse of dominant position, although the article does not detail precisely which conditions were imposed.
In its statement, PTCL emphasized that this intra‑sector consolidation aligns with a longer‑term vision for a more resilient, competitive telecom ecosystem in Pakistan.
The success of this merger will depend not only on operational integration but also regulatory compliance and consumer acceptance.
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