Telenor is concerned that the regulatory approval process for the sale of Telenor Pakistan to PTCL continues to face delays 21 months after the transaction was announced in December 2023. This is a departure from the clear and consistent trend of telecom consolidation approvals across Asia.
From the large mergers in Malaysia (Celcom-Digi), Indonesia (Indosat Ooredoo Hutchison and XL Axiata-Smartfren) Thailand (dtac-True) and Sri Lanka (Dialog-Airtel), regulators across Asia have acted decisively to enable industry consolidation with clear remedies.
These moves reflect a shared understanding across the region: consolidation is essential for capital-intensive infrastructure investments to enable sustainable competition in the telecommunications sector. Even Singapore, a mature market, has announced two industry consolidation moves in July: the sale of M1 to Simba and the acquisition of Myrepublic by StarHub.
In Pakistan, the leading operator Jazz, with 38% mobile subscriber market share and an estimated 44% revenue market share, was created by the Mobilink-Warid merger in 2016. Then, the transaction was approved in three months. In March 2025, Jazz’s towers sale to Engro was completed in six months.
“The proposed sale of Telenor Pakistan to PTCL would create a number two mobile player with a 36% mobile subscriber market share and an estimated 32% revenue share when completed. This is well within the range of other approved transactions across Asia, many of which involve higher market concentrations.” said Arnstein Sletmoe, Head of M&A, Telenor Group.
| Country | Company | Parties | Time taken for regulatory approval (from announcement to approval, months) |
Mobile subscriber market share post merger |
|---|---|---|---|---|
| Indonesia | Indosat Ooredoo Hutchison | Indosat; Ooredoo + CK Hutchison | 4 | 26% |
| Indonesia | XL Axiata | XL Axiata + Smartfren | 4 | 27% |
| Thailand | True Corporation | True + Dtac | 12 | >40% |
| Sri Lanka | Dialog Axiata | Dialog Axiata + Airtel Lanka | 14 | >40% |
| Malaysia | CelcomDigi | Celcom + Digi | 17 | >40% |
| Pakistan | PTCL | PTCL + Telenor Pakistan | Over 20 months (and pending) | 36% (as of June 2025) |
The telecom industry has transformed from simply connecting people through voice services to enabling people’s digital lives in every facet, from banking to healthcare and everything in between.
Digital adoption continues at pace in Pakistan and infrastructure which telcos provide, is the backbone of a digital Pakistan. It plays a fundamental important role in the protection of national security, enabling emergency response during and after natural disasters.
The Asian Development Bank (ADB) in its July 2025 diagnostic report on Pakistan’s digital ecosystem warned that Pakistan is lagging behind peers in digital transformation. Deep structural weaknesses and chronic underinvestment in digital infrastructure were cited as barriers to progress.
“We echo the ADB’s view that it has been an extremely challenging business environment for the telecom sector in Pakistan. The sale of Telenor Pakistan to PTCL is a critical step towards reviving the sector. The ongoing delay in approving this much needed consolidation move further risks eroding investor confidence,” said Jon Omund Revhaug, Head of Telenor Asia.
“In this capital-intensive industry, our analysis has shown that telcos with a mobile revenue market share close to 20%, such as Telenor Pakistan, cannot sustain over time. The current industry structure therefore does not support meaningful investment in the sector. Telecom investments have dropped by more than 60 percent in less than four years according to the Pakistan Economic Survey FY 2025, highlighting that a restructuring of the sector is much needed to ensure future investments. The ADB report clearly shows how Pakistan’s digital infrastructure is dragging down its overall digital rankings, impacting the country’s economic performance,” added Jon Omund Revhaug.