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Pakistan’s telecom industry is witnessing one of its biggest shakeups as Pakistan Telecommunication Company Limited (PTCL) moves to acquire Telenor Pakistan and Orion Towers. The deal, if cleared, will mark a major consolidation in a market that already faces fierce competition among Jazz, Zong, Ufone, and smaller broadband operators. With over 194 million mobile subscribers and more than 130 million broadband users in Pakistan, the merger carries significant weight for consumers and competitors alike.
The documents reviewed by TechJuice confirm that the Competition Commission of Pakistan (CCP) has conducted a Phase II review of the proposed deal. This review goes beyond the initial clearance process, signaling that regulators see the merger as potentially impactful to competition, pricing, and industry structure.
According to the documents, PTCL is the acquirer, while Telenor is the seller. The deal covers the complete acquisition of Telenor Pakistan (Private) Limited and Orion Towers Private Limited. This means PTCL, which already owns Ufone, will expand its mobile and infrastructure footprint, strengthening its position in the telecom sector.
CCP’s Regulatory Scrutiny
The CCP review focused on the telecom licensing framework, fixed-line services, mobile networks, broadband penetration, and the role of infrastructure providers. Regulators assessed how the acquisition could alter competition across these markets. Such detailed scrutiny is rare and signals the size and scope of this merger.
Competition Concerns
Key issues under review included possible market dominance, the risk of reduced competition, pricing pressures, and higher concentration in the telecom sector. Regulators examined whether the merger could lead to consumer harm, fewer choices, or unfair pricing advantages for the merged entity.
Stakeholder Hearings
The CCP invited input from major industry players, including PTA, Jazz, Zong (CMPak), Wateen, and Transworld. These hearings were designed to ensure that the acquisition would not weaken competition or undermine consumer rights. Industry rivals were particularly concerned about market concentration if PTCL gains more influence over the mobile and broadband segments.
This merger is not just another corporate transaction. It reflects the growing trend of consolidation in Pakistan’s telecom sector, where operators face rising infrastructure costs, spectrum expenses, and mounting competition. If approved, PTCL’s acquisition of Telenor Pakistan could reshape market dynamics, possibly creating a stronger rival to Jazz and Zong, the country’s largest operators.
