Telenor Flags Regulatory Hold-Up in Pakistan as Asia Moves Swiftly on Telecom Mergers

Telenor has raised concerns over prolonged regulatory delays in approving the sale of Telenor Pakistan to PTCL, more than 21 months after the deal was first announced in December 2023.

While telecom regulators across Asia have swiftly cleared major consolidation moves; from Malaysia’s Celcom-Digi merger to Thailand’s True-Dtac and Indonesia’s Indosat Ooredoo Hutchison, the PTCL-Telenor transaction remains pending. Industry experts warn that the delay risks undermining investor confidence in Pakistan’s telecom sector at a time when digital infrastructure investment is urgently needed.

“The proposed sale of Telenor Pakistan to PTCL would create a number two mobile player with a 36% mobile subscriber market share and an estimated 32% revenue share when completed. This is well within the range of other approved transactions across Asia, many of which involve higher market concentrations.” said Arnstein Sletmoe, Head of M&A, Telenor Group.

According to Telenor, regulators in markets such as Malaysia, Indonesia, Thailand and Sri Lanka have acted decisively to approve large-scale mergers, often with clear remedies to support competition. Even Singapore, a mature market, has announced two industry consolidation moves in July: the sale of M1 to Simba and the acquisition of Myrepublic by StarHub.

The company also pointed to domestic precedents, recalling that the Mobilink-Warid merger which created market leader Jazz in 2016 was approved within three months, while Jazz’s tower sale to Engro was completed within six months in March 2025. In comparison, the PTCL-Telenor deal has been under review for more than 20 months.

“The proposed sale of Telenor Pakistan to PTCL would create a number two mobile player with a 36 percent mobile subscriber market share and an estimated 32 percent revenue share when completed. This is well within the range of other approved transactions across Asia, many of which involve higher market concentrations,” said Arnstein Sletmoe, Head of M&A, Telenor Group.

Telenor noted that timely consolidation is essential to attract the capital required for large-scale infrastructure investments, which underpin digital services ranging from banking and healthcare to emergency response. The company cautioned that further delays could weaken investor confidence in Pakistan’s telecom sector at a time when renewed investment is urgently needed.

Telecom M&A transactions in Asia (2021–2025)

Country	Company	Parties	Time taken for regulatory approval (from announcement to approval, months)	Mobile subscriber market share post merger
Indonesia	Indosat Ooredoo Hutchison	Indosat; Ooredoo + CK Hutchison	4	26%
Indonesia	XL Axiata	XL Axiata + Smartfren	4	27%
Thailand	True Corporation	True + Dtac	12	>40%
Sri Lanka	Dialog Axiata	Dialog Axiata + Airtel Lanka	14	>40%
Malaysia	CelcomDigi	Celcom + Digi	17	>40%
Pakistan	PTCL	PTCL + Telenor Pakistan	Over 20 months (and pending)	36% (as of June 2025)

 

The telecom industry has transformed from simply connecting people through voice services to enabling people’s digital lives in every facet, from banking to healthcare and everything in between, the statement read.

The statement quoted Asian Development Bank (ADB) July 2025 diagnostic report on Pakistan’s digital ecosystem that warned Pakistan is lagging behind peers in digital transformation. Deep structural weaknesses and chronic underinvestment in digital infrastructure were cited as barriers to progress.

“We echo the ADB’s view that it has been an extremely challenging business environment for the telecom sector in Pakistan. The sale of Telenor Pakistan to PTCL is a critical step towards reviving the sector. The ongoing delay in approving this much needed consolidation move further risks eroding investor confidence,” said Jon Omund Revhaug, Head of Telenor Asia.

“In this capital-intensive industry, our analysis has shown that telcos with a mobile revenue market share close to 20%, such as Telenor Pakistan, cannot sustain over time. The current industry structure therefore does not support meaningful investment in the sector. Telecom investments have dropped by more than 60 percent in less than four years according to the Pakistan Economic Survey FY 2025, highlighting that a restructuring of the sector is much needed to ensure future investments. The ADB report clearly shows how Pakistan’s digital infrastructure is dragging down its overall digital rankings, impacting the country’s economic performance,” added Jon Omund Revhaug.