Mobile Packages to Get Costly as Ufone-Telenor Merger Sparks Tariff Hike Fears

Mobile phone users in Pakistan may face higher package prices in the coming months as Pak Telecom Mobile Limited, the operator of Ufone, is expected to seek regulatory approval for tariff revisions after completing its merger with Telenor Pakistan.

Industry sources said the merged entity is likely to approach the Pakistan Telecommunication Authority for approval to increase mobile tariffs once its commercial integration plans move forward. No formal request has been submitted or approved so far, but officials familiar with the matter believe the company may push for higher rates after emerging as one of the country’s largest telecom operators.

The development follows the formal completion of the Ufone-Telenor merger after the Islamabad High Court approved the amalgamation last week. With the court’s approval, Telenor Pakistan has ceased to exist as a separate legal entity, while its assets, liabilities, rights, and obligations have been transferred to PTML.

Sources said the merged operator is expected to hold significant market power in terms of subscriber share. They added that if PTA allows the market leader to revise tariffs, other telecom companies could also seek similar approvals, potentially leading to a wider increase in mobile package prices across the sector.

Pakistan’s telecom market has seen similar pricing shifts in the past. After Mobilink merged with Warid in 2016 to form Jazz, users later witnessed changes in package prices and tariff structures. Jazz’s pricing practices also remained under public and regulatory scrutiny, while the operator maintained that tariff adjustments were linked to rupee depreciation, rising operational costs, and heavy sector taxation.

Telecom companies have repeatedly argued that low average revenue per user, high taxes, currency depreciation, rising energy costs, and expensive network expansion have made the current pricing model difficult to sustain. Operators are also preparing for greater investment requirements as Pakistan moves toward next-generation connectivity and 5G rollout.

When approached for comment, PTML Director Corporate Communications Saad Warraich said the company’s priority remains uninterrupted connectivity and a seamless customer experience. He added that PTML is currently working through future commercial and brand plans and will communicate them in due course.

For consumers, the immediate impact is still uncertain. Existing packages and services are expected to continue in the near term as the two networks move through operational integration. However, any approved tariff revision could affect prepaid bundles, postpaid plans, data packages and hybrid offers used by millions of Ufone and Telenor customers.

The merger has already reshaped Pakistan’s telecom landscape, reducing the number of mobile operators and creating a larger consolidated player. While the move may strengthen investment capacity and improve network efficiency, it has also raised concerns over competition, pricing power and consumer choice.

For now, PTA approval remains the key factor. Until the regulator receives and approves a formal request, mobile tariffs will remain unchanged. However, market sources suggest that the issue of higher telecom tariffs is likely to surface soon as PTML finalises its post-merger commercial strategy.