ISLAMABAD: The Competition Commission of Pakistan (CCP) will issue conditional approval for the merger of Pakistan Telecommunication Company Limited (PTCL) and Telenor Pakistan.
It is learnt that Policy Board of Pakistan Telecommuni-cation Company Limited (PTCL), in a meeting held at PTCL head office has formally given consent to accept the stringent terms and conditions proposed by the Competition Commission of Pakistan (CCP) for its USD400 million acquisition of Telenor Pakistan. This development clears the way for CCP to issue its long-awaited order on the landmark merger, which has been under review for more than 18 months.
The CCP has conducted one of the most exhaustive merger reviews in its history, applying the Substantial Lessening of Competition (SLC) Test to determine whether the transaction would distort market dynamics. Multiple sub-markets were examined, including the cellular mobile operators’ market, long-distance and international (LDI) services, fixed-line, leased lines, and IP bandwidth.
PTCL–Telenor merger decision likely within two weeks: CCP chairman
Between September 2024 and August 2025, CCP held at least five open hearings and several confidential sessions with PTCL, Telenor, and other stakeholders. The Commission sought extensive data, including regulatory separated accounts, interconnection agreements, and business plans, to evaluate possible dominance concerns. Despite repeated delays, incomplete disclosures, and technical complexities, CCP pressed the parties for clarifications until it received the necessary information.
Officials familiar with the process confirmed that CCP faced significant external and corporate pressure to expedite approval. However, the Chairman Dr Kabir Sidhu exhibited institutional resilience by insisting on full transparency and refusing to proceed until satisfactory responses were received.
In February 2025, a stakeholder’s counsel even argued that CCP had become “functus officio” on the matter—a position outrightly rejected by the Commission, which maintained that statutory timelines were being observed and that public interest demanded a thorough probe.
The PTCL–Telenor review mirrors global precedents in telecom mergers. For comparison, the Vodafone/Three UK deal worth €17.5 billion took nearly 23 months for clearance, while the Sprint/T-Mobile merger in the U.S. underwent a 22-month review process.
In that context, CCP’s 18-month examination aligns with international best practices, underscoring the complexity of mergers that reshape competitive landscapes.
Officials were of the view that the merger is likely to create a new, highly concentrated mobile operator combining PTCL’s Ufone with Telenor Pakistan, raising risks of market dominance.
However, CCP’s conditional approval framework is expected to mitigate these risks by enforcing safeguards on pricing, interconnection, infrastructure sharing, and fair treatment of competitors. If effectively implemented, the deal could also yield efficiencies, improve service quality, reduce duplication of infrastructure, and generate cost savings.
The PTCL–Telenor case has become a litmus test for CCP’s independence and effectiveness as a regulator. By subjecting a politically and commercially sensitive transaction to rigorous scrutiny, the Commission has demonstrated its role as guardian of consumer welfare and fair markets.
Copyright Business Recorder, 2025
Comments
Comments are closed for this article.