$400 Million Telecom Deal on Track: PTCL Accepts Stringent Terms for Telenor Pakistan Acquisition
The landmark merger between Pakistan Telecommunication Company Limited (PTCL) and Telenor Pakistan is finally moving forward, with the Competition Commission of Pakistan (CCP) set to issue a conditional approval. After an exhaustive 18-month review—one of the longest in the commission’s history—PTCL’s Policy Board has formally agreed to accept the stringent terms and conditions put forth by the CCP for its $400 million acquisition of Telenor Pakistan. This consent removes the final major hurdle, clearing the way for the CCP to issue its highly anticipated order.
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CCP Demonstrates Regulatory Strength, Approves Major Telecom Merger with Market Safeguards
The CCP’s review was exceptionally thorough, applying the Substantial Lessening of Competition (SLC) Test across multiple telecom sub-markets, including mobile, fixed-line, and international services. Despite facing external pressure to rush the approval, Chairman Dr. Kabir Sidhu maintained the commission’s institutional resilience, insisting on full transparency and complete data disclosure, which caused repeated delays. The 18-month timeline, officials noted, aligns with global precedents for complex mergers, such as the Vodafone/Three UK and Sprint/T-Mobile deals.
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The merged entity is expected to result in a highly concentrated mobile operator, combining PTCL’s Ufone with Telenor Pakistan, which raised initial concerns about market dominance. However, the CCP’s conditional approval framework is designed to mitigate these risks. It will enforce strict safeguards concerning pricing, interconnection, infrastructure sharing, and fair treatment of competitors. If successfully implemented, the deal is expected to yield efficiencies, enhance service quality, and reduce infrastructure duplication, ultimately benefiting consumers. The rigorous scrutiny of this politically and commercially sensitive transaction has reinforced the CCP’s role as an independent and effective market regulator.
