The Ministry of Information Technology and Telecommunication has put forward a new regulatory framework that would significantly tighten competition rules across Pakistan’s telecommunications sector, with the proposed Telecommunication Competition Rules 2026 granting PTA the authority to require operators holding Significant Market Power to open their networks to rivals through mandatory national roaming arrangements. The draft framework represents one of the more consequential shifts in Pakistan’s telecom regulatory architecture in recent years, introducing sector-specific competition provisions that would sit alongside, rather than replace, the existing jurisdiction of the Competition Commission of Pakistan under the Competition Act 2010.
Under the proposed rules, PTA would be empowered to impose national roaming obligations on any operator that it determines holds Significant Market Power in a relevant market, where such obligations are considered necessary to promote competition, expand network coverage, protect consumers, or improve the utilisation of existing telecom infrastructure. Any roaming obligations imposed under this framework would be required to be structured on fair, reasonable, transparent, and non-discriminatory terms, with PTA additionally responsible for determining the technical feasibility, operational scope, and duration of any mandated roaming arrangements on a case-by-case basis. Recent proposals from PTA have suggested that a 25 percent market share could serve as an initial trigger threshold for assessing Significant Market Power status, with additional factors including market concentration, spectrum holdings, control over essential infrastructure, financial strength, network effects, and barriers to entry also factored into the determination.
The draft grants the regulator meaningful enforcement teeth to back up its new competition mandate, including the authority to issue directions, require corrective measures, impose proportionate regulatory obligations, and initiate formal proceedings under applicable law against operators found to be in violation of the framework. PTA would also be empowered to adjudicate disputes arising under the proposed rules, with dispute resolution decisions required to give weight to market efficiency, consumer welfare, proportionality, technical feasibility, and the overall impact on the competitive dynamics of the sector. The draft also proposes replacing the existing reference to unspecified reasonable fees in the licensing framework with fees explicitly prescribed under Schedule I, bringing greater certainty and transparency to the cost structure for applicants engaging with the regulatory process.
The practical implications of the proposed framework are most immediately relevant in the context of Pakistan’s post-merger telecom landscape, where the consolidation of Ufone and Telenor under Pakistan Telecommunications Company Limited has reduced the number of major independent network operators, and where the distribution of spectrum, subscribers, and infrastructure between the remaining players will be a key factor in how the Significant Market Power assessment is ultimately applied. For smaller or newer operators who have historically been at a structural disadvantage in reaching customers in areas dominated by major network infrastructure, mandatory national roaming access at regulated terms could meaningfully alter the competitive calculus, provided the rules are implemented with sufficient rigour to prevent the dominant operator from using technical or commercial conditions to undermine the spirit of the obligation.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.