PTCL’s Acquisition of Telenor in Danger: Here’s why?

The Competition Commission of Pakistan (CCP) has held a hearing regarding PTCL’s acquisition of Telenor with all stakeholders on board. During the hearing, the key rival of Ufone, Zong, strongly opposed the merger and cited concerns that it would distort the competitive landscape and turn it in favor of Ufone. According to Zong, the acquisition would push PTCL’s combined market share to 36.5%, positioning it just behind Jazz, which has the highest market share of 37%. Zong which currently holds 25.6% of the market, would be left behind to a distant third.

Consequently, experts believe that PTCL’s Rs108 billion acquisition of Telenor’s Pakistan operations could be in danger as the objections raised by Zong hold weight. 

Another significant point of contention is the allocation of the network spectrum. Government officials revealed that if the acquisition proceeds, the combined entity would control 34.4% of the country’s total allocated spectrum. Thus, there are fears of reduced competition in the telecom sector. It is pertinent to mention here that the network spectrum plays a key role in maintaining service coverage and efficiency.

Moreover, Zong claimed that allowing PTCL to acquire Telenor would create a near-duopoly in the market, which could diminish the incentives for competitive pricing, innovation, and service quality. The CCP is now tasked with evaluating whether the deal complies with Pakistan’s antitrust laws or if it risks harming consumers by limiting market competition. The outcome of the CCP’s decision, therefore, could shape the future of Pakistan’s telecom industry.

Meanwhile, the industry experts supporting PTCL’s acquisition argue that the move could transform Pakistan’s telecom landscape. They contend that Pakistan lags behind regional peers in telecom performance and digital adoption, and this consolidation could bridge those gaps. By leveraging the combined Telenor and Ufone networks, PTCL could extend coverage to rural and underserved areas, improving customer experience through improved service quality, retail reach, and digital offerings. Additionally, optimizing spectrum usage and infrastructure could yield faster data speeds, a substantial coverage boost, and environmental benefits,

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