Committee Seeks Govt Intervention in PTCL-Telenor Merger

ISLAMABAD: Local media reports indicate that the Auction Advisory Committee has decided to seek federal government intervention to resolve delays in the PTCL-Telenor merger, which are threatening to derail the timeline for Pakistan’s 5G spectrum auction. The decision was made during a recent meeting chaired by Federal Finance Minister Muhammad Aurangzeb at the Finance Division.

The meeting was attended by key officials, including Minister for Industries and Production Rana Tanveer Hussain, Minister of State for Information Technology and Telecommunication Shaza Fatima Khawaja, and senior representatives from the PTA and relevant ministries.

The Pakistan Telecommunication Authority (PTA) presented a detailed briefing during the meeting, highlighting the challenges posed by the pending merger approval. According to sources, PTA officials emphasized that the unresolved status of the PTCL-Telenor merger is creating uncertainty about the number of operators that will participate in the 5G auction. This uncertainty complicates the process of setting a spectrum cap and finalizing auction plans, which are expected to be completed by mid-2025.

The PTA informed the committee that an international consultant, engaged in November 2024, has completed an assessment of the telecom market. The consultant’s report includes recommendations on pricing, auction design, and network rollout plans. However, progress has been hindered by the prolonged approval process of the PTCL-Telenor merger by the Competition Commission of Pakistan (CCP). The CCP’s Phase I review raised concerns about reduced competition in the telecom sector, delaying the final decision.

Additionally, the PTA pointed to ongoing legal disputes over key spectrum bands as significant obstacles. The 2600 MHz band, crucial for 5G services, has been under litigation since 2007, and similar challenges exist for the 1800 MHz band. These legal issues, combined with the uncertainty surrounding the PTCL-Telenor merger, pose risks to the timely launch of 5G services in Pakistan.

In June 2024, Pakistan Telecommunication Company Limited (PTCL) secured up to $400 million in financing from an International Finance Corporation (IFC)-led consortium to fund the acquisition of Telenor Pakistan and Orion Towers (Pvt.) Limited. Despite having the necessary financial backing, the merger remains stuck in regulatory delays, prompting the Auction Advisory Committee to seek federal intervention as a last resort to ensure that the 5G auction proceeds as planned.