PTA Seeks Wider Powers to Reconsider Telecom Merger Approvals Under Proposed 2026 Rules

The Pakistan Telecommunication Authority (PTA) has proposed expanding its authority to review major telecom-sector transactions, including mergers, acquisitions and other corporate arrangements, even after an approval has already been granted.

The proposal is part of the draft Telecommunication Competition Rules, 2026, prepared by the Ministry of Information Technology and Telecommunication (MoITT). The proposed framework is intended to establish rules for competition-related matters within Pakistan's telecommunications sector.

PTA Wants to Remove One-Year Review Limit

Under the draft framework, the PTA has proposed removing the existing one-year restriction for reconsidering an approved telecom transaction.

The regulator wants wording that would allow it to reconsider, modify, or withdraw an earlier determination or approval whenever necessary, particularly when circumstances change or new information becomes available.

This could give the PTA the ability to revisit decisions well after an original approval if there are significant changes in market conditions, regulatory concerns, or material facts.

What Transactions Could Be Affected?

The proposed rules could cover a range of major telecom transactions, including:

• Mergers and acquisitions
• Amalgamations
• Changes in ownership or control
• Joint ventures
• Spectrum consolidation
• Corporate restructuring
• Other arrangements that could affect competition

The PTA's proposed approach would allow the regulator to examine whether a transaction continues to comply with competition and telecom-sector requirements after its initial approval.

Factors PTA Could Consider

When reviewing a telecom transaction, the regulator could consider several factors that may affect competition and consumers.

These could include market concentration, spectrum holdings, infrastructure sharing, interconnection arrangements, barriers to new market entrants, national roaming requirements, consumer interests and continuity of telecom services.

The broader issue is particularly relevant as Pakistan's telecom market has undergone significant consolidation.

Ufone-Telenor Merger Highlights Regulatory Importance

The proposed rules come at a time when Pakistan's telecom industry has already experienced a major merger involving Telenor Pakistan and Pak Telecom Mobile Limited (PTML), the operator of Ufone.

The PTA granted final approval for the merger in April 2026, subject to conditions covering regulatory obligations, service continuity and other requirements.

The merger has also generated additional regulatory discussions, including issues surrounding the merged company's branding and corporate structure. Recent reporting has highlighted continuing coordination among the PTA, government authorities and other regulators on matters connected with the merged business.

PTA and CCP Jurisdiction Remains a Key Issue

The proposed competition rules are also being developed amid an ongoing debate over the respective roles of the PTA and Competition Commission of Pakistan (CCP).

A separate dispute over competition-related jurisdiction has reached the Supreme Court, while the proposed telecom competition rules remain under consideration. The Islamabad High Court previously upheld the CCP's authority in competition matters involving the telecom sector, while distinguishing this from the PTA's regulatory responsibilities concerning technical, licensing and operational issues.

The CCP already has a statutory merger-review framework under the Competition Act. Its published guidance states that certain qualifying mergers require prior clearance and that the Commission can review conditions attached to a merger approval within one year under Section 11(13).

Rules Have Not Yet Been Finalized

The proposed changes are not yet final regulations. The Ministry of IT and Telecommunication was still consulting telecom operators and other stakeholders in September 2026.

The Senate Standing Committee on IT and Telecommunication was informed that additional time was required to finalize the proposed rules and that the CCP would also be consulted during the process.

Therefore, the final scope of the PTA's powers could change before the rules are formally approved and notified.

What the Proposed Change Could Mean

If adopted in its proposed form, the removal of the one-year review restriction would give the PTA greater flexibility to respond to significant changes in Pakistan's telecom market.

However, the final rules will determine how such powers can be exercised, what legal safeguards apply, and how the PTA's role will interact with the existing authority of the CCP.

For telecom operators, investors and consumers, the final version of the Telecommunication Competition Rules, 2026 will therefore be important in determining how future mergers, acquisitions and other major transactions are reviewed and regulated.