The long-running merger between Pakistan Telecommunication Company Ltd (PTCL) and Telenor Pakistan is slowly progressing, as PTCL works to address regulatory concerns raised by the country’s competition authority.
At a recent hearing, the Competition Commission of Pakistan (CCP) voiced reservations regarding PTCL’s financial stability and its ability to complete the acquisition. According to local newspaper Dawn, the CCP granted conditional approval for PTCL’s acquisition of Telenor Pakistan and Orion Towers, depending on the company committing to significant investment in the country’s telecom sector.
The commission has also requested PTCL resubmit its business plan, citing doubts over available funding for the acquisition and planned network expansions. Additionally, the CCP flagged competition concerns, noting PTCL holds significant market power in six out of 11 telecom segments.
The sluggish progress of the deal is having wider implications, particularly for Pakistan’s 5G ambitions. The government has delayed spectrum auctions until all potential bidders are confirmed, stalling the country’s next-generation mobile rollout.
Telenor recently stated during a financial call that it expects the sale of its Pakistani unit to conclude in the second half of the year.
Speaking to Developing Telecoms last month, Telenor Asia Head Jon Omund Revhaug explained that the Norwegian group opted to exit Pakistan due to stagnant growth and a lack of clear prospects to become one of the market’s top two operators.
