The long-pending merger between Telenor Pakistan and Pakistan Telecommunication Company Limited (PTCL) is likely to move forward, following fresh intervention by the Special Investment Facilitation Council (SIFC). The Competition Commission of Pakistan (CCP) may give the green light, provided a new settlement proposal is accepted.
According to a report, the proposed plan includes a $1 billion investment by UAE-based telecom firm e& (formerly Etisalat), which currently controls PTCL. The CCP has asked PTCL to provide detailed plans and timelines showing how the funds will be used.
The merger application, first submitted in February 2024, has been under review for nearly a year. Progress was delayed due to PTCL’s failure to respond adequately to CCP’s queries and submit required documents. After pointing out several issues, the CCP received a revised version of the application in early March.
In a letter to PTCL’s legal team, the CCP referred to Section 11(11) of the Competition Act 2010, which allows the commission to approve mergers with certain conditions—if the companies involved agree to legally binding commitments that address regulatory concerns.
A major sticking point has been unresolved financial issues. PTCL still owes $800 million, and although it had earlier agreed to release $640 million, the payment has not been made. The CCP has flagged this as a key concern in the approval process.
The Pakistan Telecommunication Authority (PTA) has also raised concerns, particularly about PTCL’s dominant position in the market. Instead of addressing the matter directly, PTCL challenged the PTA’s objections in the Sindh High Court.
The $1 billion investment proposal emerged after PTCL reached out to the SIFC for support. The SIFC, which was formed to speed up major investment decisions, appears to have played a key role in reviving the merger talks.
Telenor-PTCL Merger: What This Means for the Market?
If the CCP grants conditional approval, it would mark a major milestone in Pakistan’s telecom industry that will entirely reshape market dynamics and potentially give PTCL an even larger share of the mobile and broadband sectors. However, concerns remain about competition, user choice, and regulatory oversight.
Analysts warn that a stronger PTCL, if unchecked, could dominate the sector and stifle innovation unless strict safeguards are put in place. Therefore, the CCP’s conditional approval, if granted, is expected to include enforceable clauses aimed at protecting consumer interests and ensuring a competitive market.
All eyes are now on PTCL’s next move. Whether it accepts the CCP’s settlement terms and whether this investment offer is enough to push the merger through is yet to be seen.