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The Competition Commission of Pakistan (CCP) has reportedly given its conditional approval for the merger between Pakistan Telecommunication Company Limited (PTCL) and Telenor Pakistan, bringing an end to an 18-month regulatory saga. PTCL’s Policy Board has formally consented to the stringent terms and conditions proposed by the CCP for the $400 million acquisition of Telenor Pakistan, clearing the path for the long-awaited merger order.
The CCP’s review of the PTCL-Telenor deal has been one of the most exhaustive in its history. The Commission applied the Substantial Lessening of Competition (SLC) Test, examining multiple sub-markets including cellular mobile operators, long-distance and international (LDI) services, fixed-line, leased lines, and IP bandwidth to assess potential impacts on market dynamics.
PTCL-Telenor Merger: Still Under Review
Between September 2024 and August 2025, the CCP conducted at least five open hearings and numerous confidential sessions involving PTCL, Telenor, and other stakeholders. The Commission demanded extensive data, including regulatory separated accounts, interconnection agreements, and business plans, to evaluate concerns regarding potential market dominance.
Despite facing repeated delays, incomplete disclosures, and technical complexities from the parties, the CCP pressed for clarifications until all necessary information was provided.
Sources familiar with the process confirmed that the CCP faced significant external and corporate pressure to expedite the approval. However, Chairman Dr. Kabir Sidhu reportedly demonstrated strong institutional resilience, insisting on full transparency and refusing to proceed until satisfactory responses were received.
In February 2025, a stakeholder’s counsel even challenged the CCP’s authority, arguing it had become “functus officio” on the matter, a position the Commission firmly rejected, asserting that statutory timelines were being observed and a thorough investigation was paramount for public interest.
This 18-month examination aligns with international best practices for large telecom mergers. For comparison, the Vodafone/Three UK deal took nearly 23 months to clear, while the Sprint/T-Mobile merger in the U.S. underwent a 22-month review, underscoring the inherent complexity of such transactions.
Mitigating Market Dominance Concerns
The merger is expected to create a new, highly concentrated mobile operator, combining PTCL’s Ufone with Telenor Pakistan, raising concerns about potential market dominance. However, officials noted that the CCP’s conditional approval framework is designed to mitigate these risks by enforcing safeguards on pricing, interconnection, infrastructure sharing, and fair treatment of competitors. If effectively implemented, the deal is also expected to yield efficiencies, improve service quality, reduce infrastructure duplication, and generate cost savings.
The PTCL-Telenor case has been widely seen as a crucial test of the CCP’s independence and effectiveness as a regulator. Talks of PTCL acquiring Telenor Pakistan first surfaced in 2023, initially envisioned as a smooth $400 million transaction. However, it evolved into an 18-month process marked by hearings, disclosure challenges, and regulatory pushback.
Critics have suggested that PTCL’s pursuit reflects a more aggressive market grab, potentially creating a new concentration of power rather than primarily focusing on service improvement. Given the continuous delays throughout the process, some industry experts and sources close to the information remain skeptical about the immediate implications of the current announcement.
