KARACHI: Pakistan Telecommunication Company Limited (PTCL) on Wednesday applauded the Competition Commission of Pakistan (CCP) for granting approval to acquire Telenor Pakistan, calling the deal a pivotal step for the country’s telecom sector.
The decision concludes a protracted regulatory process for the $400 million transaction, which will merge PTCL’s mobile arm Ufone with Telenor Pakistan to create the country’s second-largest mobile operator.
The CCP subjected the merger to a Phase II review, citing concerns over market dominance, transparency, and funding sources, before granting approval with conditions.
“We highly appreciate the Commission’s thoroughness in safeguarding the future outlook and long-term sustainability of Pakistan’s telecom sector,” the PTCL said in a statement. “This intra-sector consolidation is a pivotal step forward for Pakistan’s telecom industry, which will draw strengths from both PTML (Ufone) and Telenor.”
The consolidation comes as Pakistan’s telecom industry faces rising costs and regulatory pressures.
PTCL 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 PTCL Policy Board had earlier accepted the CCP’s terms after months of hearings, with the regulator applying its Substantial Lessening of Competition (SLC) Test across multiple segments, including mobile, fixed line and long-distance markets.
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.
