PTA Grants Final Approval for Telenor–Ufone Merger with Strict Conditions

The Pakistan Telecommunication Authority (PTA) has granted final approval for the merger of Telenor Pakistan into Pak Telecom Mobile Limited (PTML), the operator of Ufone, subject to a comprehensive set of conditions aimed at protecting consumers and maintaining fair competition.

The decision marks a major consolidation in Pakistan’s telecom sector, but regulators have emphasized that the merger will proceed under strict oversight. PTML will be required to assume all liabilities, obligations, and regulatory responsibilities of Telenor Pakistan once the transaction is completed.

Key Conditions Imposed by PTA

• PTML must take full responsibility for all Telenor Pakistan liabilities and license obligations.
• Both companies must continue operating separately until the legal completion of the merger.
• Franchise and retailer agreements must remain unchanged for at least six months post-merger.
• Consumers must be informed about the merger through nationwide advertisements.
• Automatic renewal of packages without user consent has been prohibited.
• A free “balance save service” must be introduced within 60 days.
• No value-added services (VAS) can be activated without verified customer approval.
• PTML cannot revise tariffs without prior PTA approval.
• Predatory pricing and cross-subsidization practices have been strictly banned.
• The merged entity must provide fair and non-discriminatory access to its network and infrastructure.
• All interconnection agreements will remain subject to regulatory approval.
• A detailed network integration plan must be submitted within 60 days.
• Service quality targets include 20 Mbps median speeds within two years, 35 Mbps within four years, and 50 Mbps within nine years.
• Network integration must not reduce existing coverage or service levels.
• Spectrum must be used efficiently, with unused resources subject to recovery.
• Equal and transparent access to co-location infrastructure must be ensured.
• Existing customer packages must remain available for at least three months after the merger.

The merger follows the acquisition of Telenor Pakistan by Pakistan Telecommunication Company Limited (PTCL) in 2025, bringing both operators under a single corporate umbrella. The combined entity is expected to control around 31.7% of market revenue and 35.7% of subscribers, positioning it as a significant player in the telecom sector.

The PTA acknowledged that the consolidation could increase market concentration but noted that the imposed conditions are designed to prevent anti-competitive practices and ensure continued service quality.

On the technical front, the regulator has directed PTML to ensure seamless network integration without disrupting services, while also setting progressive benchmarks for improved mobile internet speeds nationwide.

The approval is conditional upon both parties formally accepting all terms within 15 days. Once the merger is legally finalized, Telenor Pakistan will cease to exist as a separate entity, with its licenses fully absorbed by PTML.

The development is expected to reshape Pakistan’s telecom landscape, influencing pricing strategies, competition dynamics, and service delivery, while placing consumer protection at the center of regulatory oversight.

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PTA Grants NOC to Ufone for Telenor Merger