PTCL accepts terms for $1b Telenor deal
A PTCL spokesperson said that the application for the acquisition of Telenor Pakistan “is currently being reviewed by the Competition Commission and we will not comment on the ongoing regulatory proceedings”. photo: file
The Board of Pakistan Telecommunication Company Limited (PTCL) has officially approved its commitment to comply with the stringent terms and conditions set by the Competition Commission of Pakistan (CCP) regarding its $1 billion acquisition of Telenor Pakistan. This development paves the way for the CCP to issue its long-awaited order on the significant merger, which has been pending for over 18 months.
CCP carried out one of the most exhaustive merger reviews in its history, applying the Substantial Lessening of Competition (SLC) Test to assess whether the deal could distort market dynamics. As per the statement, its review spanned multiple sub-markets, including cellular mobile services, long-distance and international (LDI) services, fixed-line telephony, leased lines, and IP bandwidth.
Between September 2024 and August 2025, the Commission held five open hearings and several confidential sessions with PTCL, Telenor, and other stakeholders. It demanded extensive documentation – from separated accounts to interconnection agreements and business plans – to evaluate dominance concerns. Despite delays, incomplete disclosures, and technical complexities, CCP secured all required information.
Officials said the Commission also faced political and corporate pressure to fast-track approval. Yet Chairman Dr Kabir Sidhu showed resolve by insisting on transparency and refusing to proceed without satisfactory responses.
The PTCL-Telenor review mirrors global telecom merger scrutiny. Vodafone's €17.5 billion deal with Three UK took nearly 23 months, while Sprint-T-Mobile in the US required 22 months. Against this backdrop, the CCP's 18-month process reflects international best practices for complex, market-shaping transactions.
Officials acknowledge the merger will create a concentrated operator by combining PTCL's Ufone with Telenor Pakistan, raising dominance risks. But the CCP's conditional approval framework is designed to mitigate these through safeguards on pricing, interconnection, infrastructure sharing, and fair competition.
The statement adds that, if enforced, the merger could deliver efficiencies, improve service quality, reduce infrastructure duplication, and generate savings.