The Ufone Telenor merger has officially redrawn Pakistan’s telecom landscape. For years, the market was divided among four operators, but with this merger, the number has been reduced to three, and the balance of power has shifted dramatically.
With Ufone and Telenor combined, their joint market share now stands at around 32.8%, a bit further behind Jazz, which leads with about 43%. Zong, despite years of aggressive investment and branding, lags behind at 24.1%. Jazz, with the largest subscriber base, remains the market leader, but the gap has narrowed considerably. From a comfortable lead over Ufone and Telenor separately, it now faces a rival of nearly equal scale.
The story has now essentially become a two-horse race. Once, there was one giant, one mid-sized challenger, and two weak players. Now, Pakistan’s telecom industry has transformed into a duel between two powerful operators, Jazz and the newly formed MergeCo.
Implications for Customers
- For customers: The merger promises genuine competition. Jazz can no longer rest easy with its size advantage, as MergeCo now has the muscle to match it in network rollout, pricing power, and customer acquisition.
- For the industry: The consolidation signals stability. Four operators in a low-ARPU market like Pakistan were always too many. Three strong players are more sustainable and better positioned to invest in 4G expansion and 5G rollout.
- For regulators: Oversight becomes easier with three large players instead of a fragmented industry with struggling smaller operators.
Jazz will need to strengthen its edge in digital financial services through JazzCash, leverage its strong spectrum holdings, and expand its advanced 4G coverage to stay ahead of Ufone/Telenor. The company may also accelerate 5G trials to reinforce its technological leadership. Its biggest challenge will be retaining high-value customers who may be tempted by MergeCo’s renewed strength.
MergeCo’s combined spectrum, tower footprint, and customer base create efficiencies that Jazz has not had to contend with in years. MergeCo is expected to prioritize:
- Network integration to cut duplication and deliver better coverage
- Cost savings redirected into 4G densification and 5G readiness
- Brand repositioning, possibly phasing out one brand for a unified identity
- Leveraging PTCL’s fiber dominance to deliver faster backhaul and improved data speeds
This combination could make MergeCo the most “end-to-end” operator in Pakistan, with both mobile scale and fixed-line backbone under one group.
Zong’s New Reality
Zong, once viewed as the only serious challenger to Jazz, now finds itself sidelined. Its 24.1% market share remains solid on paper, but in a three-player market, it is neither dominant enough to lead nor small enough to disrupt. Unless Zong reinvents itself, it risks being left behind.
Possible strategies for Zong include:
- Heavy investment in 5G spectrum and rollout to position itself as the fastest network
- Focusing on niche areas such as enterprise services, IoT, or youth segments
- Aggressive pricing, though margins across the industry are already thin
The challenge is significant: Jazz has the backing of Veon, while MergeCo has PTCL and Etisalat. Zong will need to fight harder than ever to remain relevant.
A Market Finally Balanced
Pakistan’s telecom sector has long been imbalanced, with one dominant operator, one hopeful challenger, and two weaker players. That imbalance hurt customers, as weaker operators could not invest in better coverage or faster internet.
The Ufone-Telenor merger changes that dynamic. It establishes true head-to-head competition between Jazz and MergeCo, while forcing Zong to reconsider its strategy. Customers are expected to benefit from more competitive packages, faster rollout of new technologies, and stronger coverage.