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                      Landmark Moment: CCP Clears PTCL and Telenor Merger

                      Published by News Desk on October 1, 2025
                      Categories
                      • Industry
                      Tags
                      • ccp
                      • merger
                      • ptcl
                      • telenor
                      • Ufone

                      The Competition Commission of Pakistan (CCP) has approved the merger between PTCL.Official (through Ufone 4G) and Telenor Pakistan, one of the most complex transactions in the country’s telecom history. The decision followed the Substantial Lessening of Competition (SLC) test, which examined whether the deal would reduce competition or deliver efficiency gains that outweigh potential risks.

                      Scope and Market Impact:

                      The merger spans multiple markets, including mobile services, long-distance international (LDI), fixed-line services, and wholesale bandwidth. Together, Ufone and Telenor will operate nearly 24,000 network sites compared to Jazz’s 15,500, with a combined 44.6 percent infrastructure share versus Jazz’s 27.9 percent. PTCL’s LDI market share will cross 40 percent, and wholesale IP bandwidth will largely be concentrated between PTCL and Transworld Home.

                      Opportunities and Efficiencies:

                      Despite concerns around market concentration, the CCP noted significant strategic benefits:

                      • Broader coverage by combining Ufone’s urban presence with Telenor’s rural reach.
                      • Spectrum optimization and fiberized towers to speed up 5G rollout.
                      • Removal of duplicate infrastructure to reduce costs and enhance service affordability.
                      • Improved customer experience through faster data speeds and expanded reach.
                      • Financial stability for the sector amid low ARPU, high taxation, and dollar-linked costs

                      Safeguards and Conditions:

                      To balance efficiency with fair competition, CCP has imposed strict conditions:

                      • Independent management of PTCL and Ufone with no cross-holding of executive roles.
                      • Arms-length transactions and no cross-subsidization within the group.
                      • Compliance oversight through independent auditors reporting to CCP.
                      • Consumer protection, including bans on predatory pricing and anti-consumer practices.
                      • Reporting obligations, with compliance updates due annually, and potential revocation of approval if conditions are violated

                      Looking Ahead:

                      By consolidating networks and streamlining operations, the PTCL–Telenor merger is positioned to improve connectivity, accelerate 5G deployment, and support Pakistan’s digitalization agenda. Yet, with heightened dominance in key markets, CCP’s ongoing challenge will be to ensure that promised efficiencies translate into tangible benefits for consumers while preventing anti-competitive conduct.

                      Author

                      • News Desk

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