The Competition Commission of Pakistan (CCP) has directed Pakistan Telecommunication Company Ltd (PTCL) to unbundle its operations after approving its merger with Telenor Pakistan. The decision, detailed in an order published on the CCP’s official website, aims to promote transparency and fair competition within Pakistan’s telecom market while ensuring that the merged entity does not engage in anti-competitive practices. PTCL has provided a written commitment to adhere to the conditions outlined in the order.
Under the new arrangement, the merged company — referred to as MergeCo — combines Ufone and Telenor Pakistan, positioning it as the country’s second-largest cellular mobile operator after Jazz, surpassing Zong in market share. The CCP’s directive sets clear boundaries to maintain the operational independence of MergeCo from PTCL and its other business divisions. Both organizations are required to maintain separate financial accounts for all service segments, ensuring no overlap in resources or management. The order also mandates that both entities establish distinct boards of directors and executive teams to eliminate any potential conflicts of interest.
The CCP emphasized that no individual may simultaneously hold senior management or board positions in both PTCL and MergeCo. Moreover, any former board members or executives will be barred from joining the other entity for a minimum of three years following their departure. This clause has been introduced to strengthen corporate governance and safeguard the integrity of market competition. Additionally, the order prohibits the exchange of commercially sensitive data between PTCL and MergeCo, reinforcing the need for clear information barriers.
Palwasha Khan, Chairperson of the Senate Standing Committee on IT and Telecom, welcomed the CCP’s ruling, emphasizing the importance of accountability given PTCL’s status as a state-owned company. She stated that the committee would monitor MergeCo’s quarterly performance reports to ensure that it remains financially sustainable and aligned with the principles of transparency. Furthermore, any changes to interconnection circuits or capacities allocated to other telecom operators, including local loop, long-distance international, and cellular licensees, will now require prior approval from PTA. This measure ensures that interconnect pricing or network capacity is not used to restrict fair access to MergeCo’s services.
According to a senior CCP official, non-compliance with the order could lead to serious repercussions, including the divestment of PTCL’s telecom infrastructure or parts of its business, as permitted under Clause 13.19 of the ruling. Analysts have suggested that this separation could bring long-term benefits to the sector by improving transparency, reducing the risk of cross-subsidization, and encouraging fair competition among operators. The decision represents a significant regulatory effort to balance market consolidation with consumer protection and sectoral growth, ensuring that Pakistan’s telecom industry remains competitive and efficient.
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