The Pakistan Telecommunication Authority (PTA) has proposed amendments to the Ministry of Information Technology and Telecommunication’s Competition Rules 2026 that would introduce a broader framework for identifying telecom operators with Significant Market Power (SMP). Under the proposed rules, a telecom licensee with a market share exceeding 25 percent would be presumed to hold SMP, although the threshold would not automatically result in a final determination. PTA would assess the relevant market and consider wider competitive conditions before deciding whether an operator actually holds significant market power. The proposed framework is intended to give the regulator a more detailed basis for examining market dominance as competition conditions within the telecommunications sector continue to change. The proposal comes alongside provisions that would place additional regulatory obligations on operators determined to have SMP.
PTA’s proposed assessment would consider several factors beyond an operator’s market share. These include sectoral revenue, overall market concentration, control over essential facilities and infrastructure, spectrum holdings, economies of scale and scope, vertical integration and barriers that could affect the entry or expansion of competing operators. The regulator may also examine the financial and technical resources available to an operator, its subscriber base, distribution channels, countervailing buyer power and network effects. Other considerations include demand elasticity, excess profitability, potential coordination among market participants and levels of non-price competition. This wider assessment means that crossing the 25 percent threshold would serve as an indicator for further regulatory examination rather than functioning as the only factor determining whether an operator has SMP.
Operators formally determined to have SMP could face additional requirements covering tariffs, pricing and access to telecom infrastructure. The proposed framework includes obligations relating to non-discrimination and transparency, along with requirements for fair access to essential facilities and reliable interconnection and access services. SMP operators may also be required to provide Reference Offers and comply with infrastructure-access requirements, accounting separation and detailed cost-accounting measures. These provisions would give PTA greater oversight of operators with substantial influence in a relevant telecom market. The proposed rules also build on PTA’s existing approach to tariff regulation, under which operators with SMP are subject to prior approval requirements for introducing or revising certain tariffs.
The proposed amendments would also allow PTA to conduct periodic reviews of relevant telecom markets and reassess market power as industry conditions evolve. This would enable the regulator to modify its assessment when market concentration, infrastructure ownership, subscriber patterns or other competitive factors change. The proposal remains a regulatory framework under consideration rather than an indication that every operator above the 25 percent threshold has already been classified as having SMP. If adopted, the changes would expand the criteria available to PTA when assessing market dominance and could introduce additional compliance requirements for operators found to hold significant market power. The proposal therefore represents a potential change in how competition and market influence are assessed across Pakistan’s telecommunications sector.
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