In Islamabad on Wednesday, the Competition Commission of Pakistan (CCP) granted conditional approval to Pakistan Telecommunication Company Limited (PTCL) for acquiring shares of Telenor Pakistan and Orion Towers and merging them with Ufone. The announcement was made at a press conference held at the CCP headquarters where Chairman Dr. Kabir Ahmed Siddiqui, Registrar & Head of Legal Ambreen Abbasi and other members were present.
According to Dr. Kabir Siddiqui, the decision was taken after carefully considering the market structure, competition concerns and consumer welfare.
Conditions for Conditional Approval
The commission clarified that the merger will only be permitted if the following conditions are fulfilled:
- PTCL and the merged company will maintain separate boards and management structures.
- Strict eligibility and transparency standards have been set for the CEO and senior management.
- Etisalat must guarantee professional leadership.
- An independent third party will conduct monitoring, auditing, and submit quarterly reports to CCP for five years.
- PTCL and the merged company must submit non-discriminatory access terms and Reference Interconnect Offers (RIO) to the Pakistan Telecommunication Authority (PTA).
- The wholesale pricing structure (including IP bandwidth, LDI, domestic leased lines and telecom infrastructure services) will require PTA’s prior approval.
- Predatory pricing will be strictly prohibited.
- Consumers must directly benefit through service quality, transparent pricing and infrastructure investment.
- In case of violations, CCP will have the authority to order forced divestiture of assets or business segments.
Merger Conditions and Impacts
| Aspect | Details |
| Nature of Merger | PTCL’s merger with Telenor and Ufone |
| Approval Status | Conditional |
| Monitoring Period | 5 years (by independent auditors) |
| Pricing Authority | Subject to PTA approval |
| Board & Management | Separate, independent structure |
| Impact on Consumers | Better services, 5G rollout, transparent pricing |
| In case of violations | CCP may order divestiture |
Possible Impact on Market and Consumers
This merger is expected to become a milestone for Pakistan’s telecom industry. Experts believe:
- The decision will accelerate the rollout of 5G technology.
- Service quality will improve offering consumers more package and internet options.
- However, if transparency conditions are not strictly implemented, there is a risk of market monopoly and price hikes.
Critical Review
Last week, CCP had expressed concerns over PTCL’s lack of cooperation and delays in providing required information. Now, with these strict conditions, the real test will be whether PTCL delivers on its commitments.
The CCP has clarified that the purpose of this decision is not just to create a giant company but to ensure that consumer interests, market competition and innovation remain uncompromised.
