The Pakistan Telecommunication Authority (PTA) has approved the merger of Telenor Pakistan with Pakistan Telecommunication Company Ltd (PTCL) under strict conditions. The approval aims to prevent abuse of market dominance and ensure investment in upcoming spectrum auctions.
Regulatory Measures for Fair Competition
The PTA emphasized that these measures are essential to maintain fair competition in Pakistan’s telecom sector. PTCL’s dominant market position requires careful oversight to prevent anti-competitive practices. Both PTCL and its mobile arm Ufone are to be treated as separate legal entities, in line with the Competition Commission of Pakistan’s guidelines. This prevents cross-subsidisation between their services and mandates maintenance of separate financial accounts.
Details of the Merger
The merger covers Telenor Pakistan, Telenor LDI Company (TLDI), and Orion Towers, which manages Telenor’s radio base stations. The newly merged mobile operator, combining Ufone and Telenor Pakistan, has been officially designated as “MergedCo” by the PTA. All liabilities and obligations of Telenor Pakistan, TLDI, and Orion Towers are now assumed by PTCL.
Restrictions on Market Practices
To maintain a level playing field, PTCL and MergedCo are barred from exclusive agreements that could limit other operators’ access to bandwidth or customers. Discriminatory pricing and preferential treatment toward affiliates or subsidiaries are prohibited. Both entities must maintain transparent pricing for wholesale and retail services, avoiding predatory or unreasonably low pricing that could restrict competition.
Separate Accounts and Branding
PTA directives require the merged company to maintain separate, detailed accounts for all business units. Moreover, PTCL and MergedCo cannot introduce or modify brand names without prior PTA approval. These measures ensure clarity, accountability, and adherence to regulatory standards.
Spectrum Auction Participation
The PTA also directed the merged entity to participate in upcoming spectrum auctions. This ensures the expansion of network coverage and addresses capacity constraints, benefiting consumers across the country.
Ensuring Consumer Benefits
Through these conditions, the PTA aims to protect market competition while allowing PTCL and Telenor Pakistan to operate efficiently as a merged entity. Customers are expected to benefit from improved services, expanded coverage, and transparent pricing structures.
The PTA’s approach balances corporate growth with consumer protection, ensuring that PTCL-Telenor’s merger strengthens Pakistan’s telecom sector responsibly.
