The merger between Telenor Pakistan and Ufone is expected to bring job cuts for hundreds of employees while also paving the way for possible tariff increases, as Pak Telecom Mobile Limited works through a large scale restructuring following the legal completion of the amalgamation. Sources familiar with the matter said the workforce adjustment is expected to be completed over the coming weeks, while the merged company is separately expected to approach the telecom regulator in the coming months seeking higher tariffs across the market.
On the employment front, the downsizing is expected to affect staff across sales, marketing, finance, human resources, technology, customer services, and administration departments, with sources estimating that between 300 and 500 employees could be reduced from the merged company’s overall headcount. Employees who wish to remain at Pak Telecom Mobile Limited will be required to pass aptitude tests, functional proficiency assessments, and interviews, a process that will determine their placement into positions within the newly merged organisation. Those who qualify will be retained in their preferred roles, subject to availability, while employees who cannot be accommodated following the assessment process will be separated from the company and offered a Voluntary Separation Scheme, commonly referred to as a golden handshake. Before the merger, Telenor Pakistan employed around 800 people, while nearly 300 Ufone employees have already been shifted to the company’s headquarters. The restructuring has already begun affecting staff, with one senior sales executive reportedly resigning after failing to secure a position in the merged organisation, and Director Corporate Communications Saad Mustafa Warraich saying the company’s current focus remains on integration, governance, and operating structures rather than commenting on internal speculation.
On the pricing front, sources said Pak Telecom Mobile Limited is expected to seek approval from Pakistan Telecommunication Authority for higher mobile tariffs once the merger fully settles, given that the combined company is expected to become Pakistan’s largest mobile operator by subscriber market share. Sources noted that the regulator is considered more likely to approve tariff requests from the market leader, a development that could prompt other telecom operators to seek similar increases afterward. Tariff revisions introduced by the largest operator have historically influenced pricing decisions across the wider telecom sector, with a similar pattern observed after Mobilink merged with Warid in 2016 to form Jazz, following which mobile users experienced increases in package and tariff prices while the operator’s pricing policies remained under regulatory scrutiny through audits and public debate.
Pakistan Telecommunication Authority had earlier approved the merger with an extensive set of conditions aimed at protecting consumers and maintaining competition, directing that Pak Telecom Mobile Limited cannot introduce or revise pricing for retail or wholesale services without prior regulatory approval. The authority also required that franchise and retailer agreements remain unchanged for at least six months after the merger, along with barring automatic renewal of subscription packages without explicit customer consent. While no formal tariff increase has been requested or approved so far, sources said discussions on a unified tariff framework are expected to move forward in the coming months, as the merged entity continues navigating both its internal restructuring and its evolving relationship with the regulator during this period of post merger integration.
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