Telenor-PTCL merger should end unsustainable price wars in Pakistan: Jazz

ISLAMABAD: “The Telenor-PTCL merger is an important milestone for Pakistan’s telecom industry, which has long grappled with low revenues and declining average revenue per user (ARPU), however, the future of the market lies in three strong operators competing on innovation and digital services rather than undercutting prices.”

This was stated by Kazim Mujtaba, President Consumer Division at Jazz, while talking to media persons.

“While we at Jazz welcome the Competition Commission of Pakistan’s (CCP) conditional approval of Pakistan Telecommunication Company Limited’s (PTCL) acquisition of Telenor Pakistan, we urge policymakers and industry players to seize this moment to end unsustainable price wars and focus instead on service-driven competition,” Mujtaba said.

“This merger should mark a shift from price-based competition to service-based competition,” he added.

“We hope the new entity competes by offering improved digital services in areas such as health, education, payments, cloud solutions, and entertainment, rather than engaging in unsustainable pricing. That will help realize Pakistan’s digital ambitions.”

Mujtaba pointed to Jazz’s own transformation from a traditional telecom operator to a ServiceCo, saying platforms such as JazzCash, Tamasha, Garaj, SIMOSA, FikrFree, and GameNow had expanded access to financial, entertainment, enterprise solutions, and more. “Now, with another company investing in similar services, we will have to accelerate our digital agenda. This will ultimately benefit consumers through better choices and opportunities,” he noted. At the same time, he underlined the urgent need for additional spectrum to ensure fair competition.

“Healthy competition requires a level playing field and sufficient spectrum allocation. Without that, even strong operators cannot deliver the desired digital experience,” he warned.

The CCP approved PTCL’s acquisition of 100 percent shareholding in Telenor Pakistan and Orion Towers, subject to conditions aimed at protecting competition and consumer interests. These include maintaining separate management structures, preventing cross-subsidisation, ensuring non-discriminatory access to infrastructure, and submitting compliance reports for five years.

The CCP said the merger is expected to enhance service quality, expand product offerings, and accelerate the rollout of 5G in Pakistan. The PTCL said the consolidation would strengthen network coverage, drive innovation, and support the government’s vision of a digitally empowered Pakistan.

Kazim emphasized that Jazz would continue to advocate for policies that encourage investment, innovation, and fair competition.

“If the merger fosters a level playing field and service-led competition, it will benefit not just the telecom industry but the entire country,” he said.

Copyright Business Recorder, 2025