A long-awaited merger between Telenor Pakistan and PTCL appears to be inching closer to regulatory approval, as CCP is likely to greenlight the deal with a new set of conditions. According to sources familiar with the matter, CCP intends to apply stipulations similar to those enforced during the Jazz-Warid merger, aiming to prevent anti-competitive practices and safeguard the broader telecom sector.
The merger has been under scrutiny for nearly a year, primarily due to incomplete documentation and delays in responding to extensive queries posed by the CCP. These issues stalled the progress of what could be one of the most significant mergers in Pakistan’s telecom industry in recent years. The application process finally saw renewed momentum after PTCL, seeking to overcome regulatory hurdles, approached the Special Investment Facilitation Council (SIFC). The council has reportedly played a role in advising a settlement path that could allow the CCP to grant conditional approval rather than outright rejection or prolonged delays.
Sources within the Ministry of Information Technology and Telecommunication confirmed that, aside from CCP’s concerns, the Pakistan Telecommunication Authority (PTA) has also raised objections to the merger. PTA has issued multiple notices to PTCL regarding its already dominant position in the fixed-line broadband and telecom infrastructure markets. There is concern that the acquisition of Telenor Pakistan would allow PTCL to consolidate further power in the mobile telecommunications space, potentially stifling competition and limiting consumer choice.
During the second phase of its review, CCP requested detailed data from PTA to assess whether the proposed merger would significantly lessen competition or create unfair market advantages. The scrutiny included an evaluation of how the merger could affect smaller players and whether it would hinder new entrants from competing effectively in the sector.
Beyond regulatory and competitive concerns, a lingering financial dispute has also clouded the transaction. The matter of $800 million in outstanding dues, related to past agreements involving Telenor Pakistan’s parent company, remains unresolved. Although a deal was previously struck to release $640 million of that amount, full settlement has yet to be finalized. This financial complication adds another layer of complexity to an already delicate merger process.
Despite these hurdles, momentum appears to be building in favor of the merger, with conditional approval now seen as the most likely path forward. If approved, the deal would reshape the competitive dynamics of Pakistan’s telecom market by bringing together PTCL’s infrastructure reach and Telenor’s subscriber base under one umbrella. However, regulators are expected to impose strict oversight and operational guidelines to ensure that the merger does not adversely impact competition, pricing, or service quality.
The coming weeks will be critical as PTCL and Telenor Pakistan engage with CCP and PTA to address pending issues and meet compliance requirements. Final approval from the CCP would not only mark the end of a prolonged regulatory battle but also signal a shift toward further consolidation in the country’s telecom industry, with potential implications for customers, competitors, and future investment in the sector.
