Telenor has expressed concern over prolonged delays in the regulatory approval process for the sale of Telenor Pakistan to Pakistan Telecommunication Company Ltd (PTCL), which has remained pending 21 months after the transaction was first announced in December 2023. In a statement released on Friday, the company highlighted that these delays deviate from standard practices across Asia, where telecom consolidation deals in Malaysia, Indonesia, Thailand, and Sri Lanka were processed efficiently with clear remedies for market oversight. Telenor stressed that decisive regulatory action in the region reflects a shared understanding that industry consolidation is essential for enabling sustainable competition and facilitating capital-intensive infrastructure investments.
According to Telenor, the merger between PTCL and Telenor Pakistan would form the country’s second-largest mobile operator, controlling an estimated 36% of the mobile subscriber base and approximately 32% of revenue share. Arnstein Sletmoe, Head of M&A at Telenor Group, said the proposed transaction falls well within ranges observed in approved regional deals, many of which involve even higher market concentrations. The company referenced Pakistan’s own telecom consolidation history, noting that the Mobilink-Warid merger in 2016, which created Jazz with 38% mobile subscribers and 44% revenue share, was completed in just three months. Telenor argued that the continued delay risks creating uncertainty and discouraging further investment in the sector.
Highlighting the broader implications for Pakistan’s digital economy, Telenor cited an Asian Development Bank (ADB) report warning that the country is lagging in digital transformation. Jon Omund Revhaug, Head of Telenor Asia, stressed that the merger is a critical step toward revitalising the telecom sector, and that ongoing regulatory delays could erode investor confidence while hindering long-term growth. He noted that operators with mobile revenue shares near 20%, such as Telenor Pakistan, face challenges in sustaining operations over time, indicating that the current market structure does not support significant investment. According to the Pakistan Economic Survey FY 2025, telecom sector investments have declined by more than 60% in under four years, highlighting the urgent need for structural reforms to encourage capital inflow.
Telenor urged Pakistani regulators to expedite approval of the sale, arguing that consolidation would strengthen the sector, improve efficiency, and create a competitive environment conducive to sustained investment. The company emphasised that clear and timely regulatory decisions are critical to maintaining investor confidence and enabling telecom operators to make long-term commitments to network expansion and digital infrastructure. Delays in the approval process, Telenor said, risk not only the financial stability of existing players but also the country’s ability to meet growing demand for modern telecommunications services, which are essential for Pakistan’s economic development and digital transformation initiatives.
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