Hatem Bamatraf, President and Group CEO of PTCL and PTML, emphasized the need for consolidation in Pakistan’s telecom sector, stating that the market can generate value with just three operators. The announcement came during an event in Islamabad where PTCL officially declared its acquisition of Telenor Pakistan for Rs108 billion (approximately $385 million).
Bamatraf, addressing concerns about the sector’s erosion of value, explained that the current market structure with numerous players has led to this decline. He sees market consolidation into three players as a protective measure to sustain and enhance value. Anticipating swift regulatory approval, he emphasized that the acquisition is a corrective step for the market.
While Bamatraf highlighted the transaction’s benefits for various stakeholders, including customers, he also mentioned its positive impact on technological advancements such as 5G, AI, IoT, and infrastructure improvements.
PTCL’s Chief Financial Officer, Nadeem Khan, discussed the profitability drivers, emphasizing that synergies would play a crucial role. The group estimates a Rs45 billion EBITDA immediately after the Telenor acquisition, with improved profitability and added synergies within just over two years.
Regarding payment for the transaction and potential concerns with the State Bank, Khan reassured that since the investors are foreigners, there would be no issue with large transactions in dollars.
Upon completion, the consolidated company will hold a 37% share in the cellular mobile operators’ space, combining Ufone and Telenor’s market shares. This positions them almost equally with Jazz, the current market leader. PTCL officials downplayed legal concerns about Ufone and Telenor sharing spectrums, citing past instances with Jazz and Warid.
The acquisition signals a significant shift in the telecom landscape, poised to enhance services, expand coverage, and contribute to the sector’s overall growth.
