ISLAMABAD: The Pakistan Telecommunication Authority (PTA) announced this week it has granted a no objection certificate to the Pakistan Telecommunication Company Limited (PTCL) to push ahead with its $400 million deal to acquire Telenor Pakistan. 

The major acquisition, which was announced earlier this year, will merge PTCL’s mobile arm Ufone with Telenor Pakistan to create the country’s second-largest mobile operator.

The development takes place as Pakistan’s telecom industry faces rising costs and regulatory pressures.

 “PTA evaluated the transaction’s impact on market competition and consumer interests, and consulted relevant government bodies to ensure full compliance with statutory requirements,” the authority said in a statement issued late Saturday. 

The PTA said both companies must ensure continuity and quality of services to consumers, urging them to uphold all license obligations during the transaction. 

“PTA will closely monitor the process to safeguard consumer rights and maintain a competitive and forward-looking telecom sector,” it added. 

PTCL had earlier said the acquisition will improve customer experience, enhance network quality and coverage, while enabling the whole sector to achieve greater efficiency, build resilient infrastructure and create a more competitive landscape. 

The deal is expected to reshape Pakistan’s telecom landscape, which has four major operators but remains under pressure from thin margins, high spectrum fees and heavy capital expenditure needs.