Pakistan Telecommunication Company Limited (PTCL) has officially taken the next step in consolidating the telecom sector. The company formally submitted an application to the Pakistan Telecommunication Authority (PTA) to merge Telenor Pakistan and Ufone. Official sources confirmed this development today.
This move follows the PTCL Group’s recent acquisition of Telenor Pakistan and Orion. The goal is to strengthen PTCL’s mobile segment. By integrating Telenor’s operations with Ufone’s existing infrastructure, the group aims to combine assets and customer bases effectively.
The ball is now in the PTA’s court. Sources indicate the authority will likely complete its review within one and a half to two months. During this phase, the regulator will evaluate several critical factors. These include the proposed business plan, tower assets, and network infrastructure. Additionally, they will assess the transfer and consolidation of spectrum holdings and licenses.
The PTA will also closely watch the merger’s impact on consumer interests and market competition. They must check for spectrum concentration before granting formal approval.
The process involves multiple hurdles. Once the PTA grants approval, the transaction moves to the Securities and Exchange Commission of Pakistan (SECP) for clearance. Finally, PTCL must seek endorsement from the court for the “Scheme of Arrangement”. This legal step is mandatory to close the deal.
According to sources, this entire legal and regulatory chain will take approximately five to six months.
Industry experts see potential in this consolidation. The merger could drive operational efficiencies and improve network coverage. Furthermore, it promises enhanced service offerings for consumers. Experts also believe this shift will intensify competition among the country’s remaining telecom operators.