PTA Approves Merger of Telenor and Ufone

PTA has approved the merger of Telenor Pakistan and Ufone, initiating a four-week legal process that will reshape Pakistan’s telecom industry.

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The Pakistan Telecommunication Authority (PTA) has granted technical approval for the merger of Telenor Pakistan and Ufone, marking a significant consolidation in the telecom sector. The Pakistan Stock Exchange (PSX) will be formally notified of the development, as Ufone is a subsidiary of Pakistan Telecommunication Company Ltd (PTCL). A senior PTCL official confirmed that board-level approvals are complete, with legal steps now pending. “Legal approvals are the next steps, and for that, an application for amalgamation will be filed in the Islamabad High Court soon,” the official stated.

The amalgamation process, expected to take four weeks, involves clearance of litigation and regulatory checks from institutions such as the State Bank and Federal Board of Revenue. PTA’s approval allows backend integration, including tower rationalization, as the merged entity will manage nearly 26,000 towers. Subscriber overlap may reduce the combined base of 72.45 million by up to 10 percent, with potential shifts to competitors Jazz and Zong. PTA has also mandated safeguards, including six months’ notice for franchisees before contract termination. The merger is poised to reshape Pakistan’s telecom landscape, streamlining operations while intensifying competition among the country’s leading mobile operators.