Pakistan Telecommunication Company Limited (PTCL) has presented its case before the Competition Commission of Pakistan (CCP) as part of a regulatory review under Section 11(6) of the Competition Act, 2010, regarding its proposed acquisition of 100% shareholding in Telenor Pakistan (Private) Limited and Orion Towers (Private) Limited.
The senior leadership of PTCL appeared before the CCP bench, chaired by Dr. Kabir Ahmed Sidhu, with Member Salman Amin and Member Abdul Rashid Sheikh, to explain the scope of the deal and its expected efficiencies and to provide regulatory documentation, including the company’s business plan.
PTCL executives were questioned thoroughly about the merger’s competitive implications, especially in terms of market share, infrastructure ownership, and the consumer impact. The Commission has sought additional clarifications before it reaches a final decision.
PTCL’s Move Toward Market Consolidation
PTCL’s interest in acquiring Telenor Pakistan is part of a broader strategy to consolidate its position in the mobile and telecom space. If the deal is approved, PTCL will gain complete control of Telenor Pakistan, the country’s second-largest telecom operator by subscriber base, a move that could significantly shift the market’s power balance.
This acquisition is being pursued through PTCL’s parent company, e& (Emirates Telecommunications Group, formerly known as Etisalat), which has also been in advanced talks with Telenor Group, the Norway-based telecom giant that owns Telenor Pakistan.
Telenor has been gradually pulling back from several Asian markets in recent years to focus on core European operations. As part of this global realignment, Telenor Group has been exploring exit options from Pakistan, and PTCL emerged as the most viable buyer due to its local footprint and strategic alignment.
While PTCL owns Ufone, it has historically struggled to gain a substantial mobile market share. Ufone has faced stiff competition from dominant players like Jazz and Zong, primarily due to limited 4G spectrum and underinvestment in infrastructure. The company has also recorded frequent losses in recent years, making profitability a challenge.
By acquiring Telenor Pakistan, PTCL seeks to instantly boost its mobile business capabilities, network strength, and subscriber base. Telenor’s nationwide 4G coverage, active user count, and established tower infrastructure (through Orion Towers) offer significant synergies for PTCL’s struggling mobile segment.
Industry insiders view this as a potential game-changer, one that could revive PTCL’s competitive edge and possibly reshape Pakistan’s mobile telecom landscape.
Regulatory Oversight and Future Outlook
The CCP now holds a critical role in determining whether the proposed merger would harm market competition or consumer interest. Mergers of this scale require careful assessment of market dominance, anti-competitive risks, and the potential for price control or service quality issues. The Commission has not yet given a final verdict and has requested further documentation and analysis from PTCL before proceeding.
If the acquisition is approved, it would not only create one of the largest integrated telecom entities in Pakistan but could also signal the beginning of a new consolidation wave in the industry. As the telecom sector faces growing pressure from rising operational costs and declining ARPU (Average Revenue Per User), strategic mergers like this could become more common.