After CCP’s Approval, PTCL-Telenor Merger Decision Reaches PTA

The Competition Commission of Pakistan (CCP) decision regarding acquisition of 100 percent shareholding of Telenor Pakistan (Pvt.) Ltd. and Orion Towers (Pvt.) Ltd. by Pakistan Telecommunication Company Limited (PTCL) has formally reached Pakistan Telecommunication Authority (PTA), as per reports.

Official sources revealed that the decision was formally received on Friday to PTA which is expected to give its consent in 4-6 weeks. The Authority has already completed its homework regarding the merger and would give its decision soon.

The official added that CCP was only looking the case from competition point of view, however PTA would look into the matter from different angles including quality of services, spectrum, infrastructure and others.

PTCL may face tough conditions with respect to removing co-towers, as it is planning to shut down around 5000 towers, which are located in a shorter distance. Both Telenor and Ufone have around 26000 towers.

It is expected that PTA may attach more stringent conditions with the merger, after which the case would be sent to State Bank of Pakistan and Security Exchange Commission of Pakistan.

CCP recently approved the acquisition of 100 percent shareholding of Telenor Pakistan (Pvt.) Ltd. and Orion Towers (Pvt.) Ltd. by PTCL, subject to extensive conditions designed to preserve competition and ensure non-discriminatory access and secure the pass-through of efficiencies to consumers.

The order was announced at a press conference and the officials explained that CCP conducted a comprehensive review of the merger transaction. The review examined market structure, concentration levels, efficiencies, and potential competition risks.

Key Conditions Imposed Include:

• Separate Management & Governance: PTCL and the merged entity must maintain separate boards and independent management structures
• Leadership Standards: CEOs and senior management must meet strict competency and integrity requirements, with Etisalat ensuring professional leadership
• Independent Third-Party Reviewer (TPR): To monitor compliance, audit transactions, and submit quarterly reports to CCP for five years
• Party Transactions & Cross-Subsidization: Prohibited unless conducted competitively and at arm’s length.