CCP Warns PTCL’s “Abuse of Power” Could Derail Ufone–Telenor Merger

The Competition Commission of Pakistan (CCP) has accused Pakistan Telecommunication Company Limited (PTCL) of obstructing scrutiny and withholding critical data in the proposed merger of Telenor Pakistan with Ufone, warning that the deal could cement PTCL’s dominance in the telecom sector if not carefully regulated.

In a briefing to the Senate Standing Committee on IT & Telecom, the CCP presented what it called a pattern of defiance by PTCL, citing its “non-responsive attitude”, history of collusive practices, and a tendency to challenge Pakistan Telecommunication Authority (PTA) regulations in court to delay enforcement.

PTCL’s Track Record Under Fire

The CCP recalled PTCL’s involvement in the controversial International Clearing House (ICH) agreement, where 14 operators colluded to manipulate international call traffic. PTCL was among those penalised, with Rs 70 million recovered in fines.

“PTCL abuses its dominant position,” the Commission told senators, arguing that its past behavior undermines confidence in its ability to manage a major merger responsibly.

The Commission also questioned PTCL’s management of Ufone, noting the mobile operator has remained loss-making under PTCL’s control, raising doubts about whether absorbing Telenor Pakistan would improve competitiveness or simply expand PTCL’s market power.

Withheld Data and Delays

The CCP said PTCL has repeatedly delayed the merger review process by submitting incomplete, overly technical data often missing key links and withholding crucial agreements.

Even after a year since the first open hearing in September 2024, PTCL has not fully complied. As late as August 26, 2025, the company submitted agreements with Jazz, Zong, and Telenor but failed to provide details of its agreement with Ufone.

This evasiveness, the CCP warned, not only delays regulatory scrutiny but also creates risks of cross-subsidisation between PTCL’s long-distance international (LDI) license and Ufone’s cellular operator license, blurring regulatory lines and weakening oversight.

PTCL-Telenor Merger Risks: From Efficiency Gains to Monopoly Concerns

While acknowledging that telecom mergers can drive efficiency and innovation, the CCP cautioned that the PTCL–Telenor transaction risks a Substantial Lessening of Competition (SLC) in Pakistan’s telecom market.

A consolidated PTCL-Ufone-Telenor entity could:

• Entrench PTCL’s dominance in fixed-line and mobile services
• Reduce competitive pressure on pricing and service quality
• Increase entry barriers for new operators
• Limit consumer choice in an already concentrated market

The CCP’s Options

The regulator said it is weighing three possible outcomes:

1. Outright rejection of the merger,

2. Conditional approval with strict compliance measures, or

3. Approval contingent on PTCL signing legally enforceable agreements to protect competition.

Until then, the CCP stressed that consummation of the deal remains prohibited under Section 11(11) of the Competition Act.

Why This Matters

The CCP’s unusually blunt presentation signals deep mistrust of PTCL, which it views as a repeat offender in anti-competitive practices. For Pakistan’s telecom market, already dominated by a few large players, the outcome of this merger could determine whether consumers benefit from greater efficiency or face a tighter monopoly.

“The promised benefits of telecom mergers will remain uncertain unless PTCL is held accountable for compliance and transparency,” the Commission concluded, underscoring the need for stronger regulatory enforcement before any deal goes forward.

ALSO READ: IT Minister Links 5G Launch Delay to PTCL-Telenor Merger & Spectrum Litigation Cases