The Competition Commission of Pakistan (CCP) is moving towards approving the merger of Telenor Pakistan Limited with Pakistan Telecommunication Company Limited (PTCL), following intervention from the Special Investment Facilitation Council (SIFC).
In a letter addressed to the CCP, PTCL’s legal representative, Rahat Kausar Hasan, referenced Section 11(11) of the Competition Act 2010 and presented a new settlement offer. The proposal suggests an investment of approximately $1 billion from UAE-based telecom company e&, formerly known as Etisalat, which holds a majority stake in PTCL.
Sources indicate that the CCP has requested a timeline and specific details on the investment areas to be made. Under Section 11(11) of the Competition Act, if the Commission determines that a proposed merger will not substantially reduce competition, it cannot block the transaction. The law also allows the Commission to approve the merger with conditions or enforceable agreements.
PTCL’s merger application had been delayed for almost a year due to the company’s failure to provide the necessary documents in response to multiple queries. Additionally, there is an unresolved issue regarding an outstanding payment of Rs 800 million. A settlement of $640 million had been reached between the previous government and PTCL management, but the payment remains pending.
Following the intervention of SIFC, PTCL proposed a fresh investment of $1 billion. The company had approached the council for assistance in resolving the matter. Upon completion of the merger, Ufone Pakistan, which will acquire Telenor, is expected to have over 75 million mobile subscribers, positioning it as the second-largest telecom company in Pakistan.
This merger is anticipated to enhance competition in the mobile phone services market, leading to improved services for consumers. Meanwhile, the government is actively working on initiatives related to the mobile phone services sector.