ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL) Group has reportedly raised the inordinate delay in Competition Commission of Pakistan (CCP)’s decision regarding acquisition of Telenor Pakistan (Pvt) Ltd and Orion Towers (Pvt) Ltd with the Special Investment Facilitation Council (SIFC).
Well-placed sources told Business Recorder that CCP has shared conditions - likely to be linked with the decision regarding acquisition, with PTCL last Tuesday. The conditions included Section 3 of the Competition Act which is about abuse of dominant position and will restrict PTCL in Long Distance International (LDI) business from abusing its dominant position.
Section 3 of the Act prohibits the abuse of a dominant position through any practice that prevents, restricts, reduces, or distorts competition in the relevant market. These practices include, but are not limited to, reducing production or sales, unreasonable price increases, charging different prices to different customers without objective justifications, that make the sale of goods or services conditional on the purchase of other goods or services, predatory pricing, refusing to deal, and boycotting or excluding any other undertaking from producing, distributing or selling goods, or providing any service. Besides Section 3, the CCP has also shared some sector specific conditions as well, sources added.
The CCP’s detailed review included a close examination of the transaction’s effect on key telecom submarkets, including LDI, Local Loop Operators (LLO), telecom infrastructure, mobile network operators and domestic leased lines and IP bandwidth.
During the series of open hearings, conducted by CCP, it was learnt that the merger would significantly reshape market shares across several telecom sectors. Notably, PTCL that holds 50.5 percent of the retail LDI, fixed-line market, will control 61 percent of LDI market after said accusation.
In the mobile telecommunications sector, PTCL’s Ufone share of 12.4 percent will merge with Telenor’s 24 percent share, creating a new entity holding 37 percent of the market. Additionally, PTCL will dominate wholesale IP bandwidth and domestic leased lines, controlling 68 percent and 42.7 percent, respectively, following the transaction.
Sources revealed the PTCL Group is yet to submit response to CCP in this regard. CCP official confirmed to Business Recorder that PTCL is yet to respond and the Commission is waiting, which would be followed by a decision in acquisition case. The Group recently conveyed to SIFC where it reportedly raised the matter.
Salman Amin Member (Office of Fair Trade, Cartels and Office of International Affairs), CCP, recently stated that the Commission is all set to announce the decision regarding PTCL) acquisition of Telenor Pakistan (Pvt) Ltd and Orion Towers (Pvt) Ltd soon, keeping in mind what remedies may be linked to mitigate the concern of lessening competition and abuse of dominance or the other way around.
The CCP has completed all cordial formalities of Phase-II review of PTCL’s acquisition of 100 percent shareholding in Telenor Pakistan (Pvt) Ltd and Orion Towers (Pvt) Ltd and the decision is expected to be announced anytime soon.
Copyright Business Recorder, 2025
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