After waiting 18 months, the Competition Commission of Pakistan (CCP) has finally given PTCL the green light to buy mobile company Telenor.
“This is one of the most complicated deals in the world,” said CCP Chairman Dr. Kabir Ahmed Sidhu during the announcement. He added that the approval comes with strict rules to stop monopolies and unfair business practices.
The deal allows PTCL to take full ownership of Telenor Pakistan and Orion Towers. But the CCP has set rules to protect competition, ensure fair access, and make sure customers benefit from any efficiency gains.
The announcement was made at a press conference at the CCP headquarters. Chairman Sidhu was joined by Member Salman Amin, Registrar Shahzad Hussain, and Head of Legal Ambreen Abbasi, who outlined the main points of the deal.
The CCP carefully reviewed the merger, checking market structure, competition levels, efficiency claims, and risks to fair competition.
“We can cancel the merger if we spot anti-competitive practices or violations,” warned CCP Member Salman Amin. He added that PTCL and Telenor must maintain separate accounts to prevent cross-subsidization.
PTCL has been covering losses from its subsidiary Ufone, which has already affected its finances.
Even with these conditions, some in the telecom industry are concerned, especially since PTCL has taken the Pakistan Telecommunication Authority (PTA) to court over unrelated matters. When asked about possible legal challenges to the CCP order, Chairman Sidhu dismissed the idea.
“PTCL has agreed to all conditions and must submit reports to show compliance,” he said. The CCP will monitor the merger for five years. “By then, other telecom companies will adjust to the market.”
Sidhu said the main goal is to keep the telecom market fair and protect consumers. He also noted that the merger could improve service quality, expand product offerings, and speed up technology growth, including 5G rollout.
The CCP studied similar mergers in the US, UK, and EU before giving approval. Legal Adviser Ambreen Abbasi added that the merger was carefully checked for any risks to competition and comes with strict rules to prevent unfair practices.
Key rules for the PTCL-Telenor merger:
- Separate management: PTCL and Telenor must have independent boards and management teams.
- Qualified leadership: CEOs and top managers must meet strict standards of competence and integrity.
- Third-party review: Independent auditors will monitor the merger and report every three months for five years.
- No cross-subsidization: Deals between related parties must be fair and competitive.
- Fair access to networks: PTCL must provide equal access to its infrastructure for all operators.
- No price discrimination: PTCL must get PTA approval for wholesale pricing and cannot undercut competitors.
- Consumer protection: The company must follow service quality rules, innovation policies, and PTA tariffs.
- Efficiency proof: Any savings or efficiencies must benefit customers through better services or lower prices.
- Divestiture option: CCP can force PTCL to sell assets if rules are broken in the future.
Salman Amin said these measures prevent favoritism, predatory pricing, and obstacles to new companies while ensuring CCP and PTA oversight.
Telenor Asia welcomed the approval, saying, “This deal will strengthen Pakistan’s telecom sector. Telenor Pakistan will continue serving its 43 million customers.”
Jazz CEO Aamir Ibrahim also praised the merger, noting, “Consolidation can make the telecom industry stronger by investing in expanding services rather than duplicating networks. Now, timely spectrum release should be the priority to help Pakistan grow digitally.”
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