Auction Advisory Committee has resolved to seek federal government intervention to expedite the pending acquisition of Telenor Pakistan by Ufone. This decision arises from concerns that prolonged delays in finalizing the acquisition are adversely impacting the country’s forthcoming 5G spectrum auction. The committee convened recently under the leadership of Federal Finance Minister Muhammad Aurangzeb at the Finance Division. During this session, PTA provided a comprehensive briefing on the nation’s readiness for the 5G spectrum auction and highlighted the challenges currently hindering progress.
According to sources, PTA officials disclosed that an international consultant was engaged in November 2024 to conduct a thorough assessment of the telecom market and engage with key stakeholders. This consultant, appointed in compliance with Public Procurement Regulatory Authority (PPRA) guidelines, has completed the evaluation. The finalization of the pricing structure, auction design, and network rollout plans is anticipated in the near future, with the spectrum auction slated for mid-2025. A primary concern raised by PTA pertains to the delays surrounding the acquisition of Telenor Pakistan by Ufone. CCP has yet to render a decision on the acquisition, leading to uncertainty regarding the number of operational players in the telecom market—whether it will continue with four or consolidate to three. This ambiguity hampers the PTA’s ability to establish a definitive spectrum cap, a crucial element for the auction’s framework.
Further complicating the scenario are ongoing legal disputes over essential spectrum bands. The 2600 MHz band, deemed vital for 5G services, has been embroiled in litigation since 2007. Similarly, the 1800 MHz band is entangled in legal challenges. These disputes pose significant risks to the timely deployment of 5G services across Pakistan. The CCP has concluded its Phase I review of the Telenor-Ufone merger, indicating potential concerns over reduced competition within the telecom sector. The ensuing Phase II review has encountered complexities, particularly in assessing market dominance and the implications of increased industry concentration. Multiple hearings and stakeholder consultations have been conducted to thoroughly evaluate the prospective impact of the acquisition.
In June 2024, PTCL secured up to $400 million in financing from an International Finance Corporation (IFC)-led consortium to facilitate the acquisition of Telenor Pakistan and Orion Towers (Pvt.) Limited. Despite securing financial backing, regulatory delays continue to impede the finalization of the deal, thereby affecting the overall telecom market and the strategic rollout of 5G services. The meeting witnessed the participation of notable figures, including Minister for Industries and Production Rana Tanveer Hussain, Minister of State for Information Technology and Telecommunication Shaza Fatima Khawaja, the Chairman of PTA, the Secretary of the Ministry of Information Technology, the Secretary of the Ministry of Law, and other senior officials.
The collective sentiment underscores an urgent need for decisive action to resolve the regulatory and legal impediments hindering the Telenor-Ufone acquisition. Such resolution is imperative to maintain the momentum of Pakistan’s 5G ambitions and to ensure the nation’s competitiveness in the rapidly evolving global telecommunications landscape.As the mid-2025 timeline for the 5G spectrum auction approaches, stakeholders across the industry are keenly observing the developments surrounding the acquisition. The expeditious resolution of these challenges is crucial for setting a robust foundation for the successful deployment of 5G technology in Pakistan, promising enhanced connectivity and a multitude of economic opportunities.
