The Competition Commission of Pakistan (CCP) has finally approved the merger of Ufone and Telenor Pakistan, but the green light comes with a long list of conditions.
The regulator says it wants to ensure that, as the two companies combine their operations, competition in Pakistan’s telecom market is not weakened to the point where customers and rival operators suffer.
This is one of the biggest changes Pakistan’s telecom industry has seen in years. For over a decade, the country had four national mobile operators competing for market share. With this deal, that number will shrink to three. Fewer operators can mean stronger networks and cost savings, but it can also lead to higher tariffs and less choice for consumers.
The order makes it clear that Pakistan Telecommunication Company Limited (PTCL), which owns Ufone and is acquiring Telenor Pakistan, must keep its businesses independent.
Ufone and the newly merged company cannot share directors or management. If an executive moves from one side to the other, they must wait three years. This condition is aimed at stopping “conflict of interest” and ensuring that both entities operate on commercial, not personal, terms.
Leadership will also be under the microscope. The new mobile company must be run by professionals with solid telecom and digital experience. They will be measured not just on financial results but also on network performance, efficiency, and delivery of the merger’s promised benefits. Etisalat, the parent of PTCL, will be held accountable to make sure this professional management delivers.
A big focus of the CCP’s order is transparency in how PTCL and the new mobile operator deal with each other. They must maintain completely separate accounts, audited independently, and submit quarterly reports. Any commercial arrangements between them, such as network sharing, leasing of infrastructure, or bandwidth, must be at fair, arm’s-length terms. T
hey are strictly barred from giving each other hidden subsidies or discriminatory pricing. Importantly, wholesale pricing of services like bandwidth and leased lines will require prior approval from the Pakistan Telecommunication Authority (PTA).
To enforce all of this, the CCP has ordered the appointment of an independent reviewer for five years. This reviewer, who must be conflict-free and professionally qualified, will receive reports every quarter, monitor compliance, and flag any violations to the regulator. If the rules are broken, the CCP has the power to impose penalties or even revoke its approval of the merger.
On the network side, the companies cannot discriminate when connecting calls or sharing towers. They must provide interconnection on equal terms to all operators, including each other. Any changes to interconnection circuits must have PTA’s clearance. Infrastructure sharing will also remain open to rivals, and existing sharing agreements must continue.
In addition, the merged company must open its network to virtual operators, known as MVNOs. These are companies that do not own towers or spectrum but can still sell mobile services by leasing network capacity. This move could help maintain consumer choice even if the number of traditional operators falls.
The conditions also touch on procurement and operations. All new equipment purchases must be competitive and transparent. Any shutdown or relocation of network sites will require PTA’s approval. Existing contracts with other operators will remain valid for at least three years unless both sides agree otherwise.
Consumers have not been forgotten either. The merged company cannot change tariffs without PTA’s approval, and service quality standards will remain binding. At the same time, the CCP expects the company to invest in innovation, including the rollout of 5G. The message is clear: cost-cutting alone will not be enough; consumers must see tangible improvements.
Finally, the CCP has asked PTCL and the new mobile operator to prove that the merger’s benefits, such as better coverage, faster data speeds, and more reliable service, actually reach customers. If these benefits do not materialize, or if competition is harmed, CCP reserves the right to impose more remedies. In the worst-case scenario, it can even force PTCL to sell parts of the business.
Why this matters for the public
For customers, the merger could mean stronger network coverage and better data speeds as resources are combined. Prices should not rise overnight because any tariff changes need PTA’s permission. However, fewer operators also mean less competition, so keeping the pressure on service quality and innovation will be critical.
Why this matters for the industry
Rival operators will be closely monitoring to ensure that interconnection and infrastructure sharing remain fair. The conditions around MVNOs could also open the door for new players, bringing fresh offers to the market. For the government and regulators, this is a test of whether they can keep the telecom sector competitive while also encouraging consolidation.
The CCP’s decision is pragmatic. Pakistan’s telecom sector has been struggling with low revenues, rising costs, and heavy investment needs. Bigger, financially stronger operators are needed to prepare for 5G and to maintain network stability. But size comes with power, and power must be checked. These conditions aim to give Pakistan the best of both worlds: a stronger operator but with rules in place to protect competition.
The real outcome will depend on two things: whether the merged company sticks to the rules and genuinely improves services, and whether regulators remain vigilant in enforcing the safeguards. If both happen, this merger could strengthen Pakistan’s telecom industry without hurting consumers.