The Competition Commission of Pakistan (CCP) has expressed strong concerns over the proposed merger between Telenor Pakistan and Pakistan Telecommunication Company Limited (PTCL), cautioning that the deal could significantly reduce competition and limit consumer choices in the telecom sector.
In its review under Regulation 10 of the CMCR 2016, the CCP assessed market concentration, barriers to entry, and the potential loss of effective competitors. The findings revealed that the merged entity, referred to as MergeCo, would dominate several key segments. In the wholesale domestic leased line market, MergeCo would hold a 42.7% share—almost identical to PTCL’s current 42.1%—leaving smaller operators with little room to compete. Similarly, in the wholesale IP bandwidth segment, PTCL already commands 64.5%, while Transworld Associates holds 35.5%, creating risks of a duopoly.
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The watchdog also flagged concerns in the retail long-distance and international (LDI) services market, where MergeCo would capture 43.18%, surpassing PTCL’s current 32.67%. Such dominance, the CCP warned, could discourage innovation, increase the risk of collusion, and raise barriers for new entrants. Smaller operators such as LinkDotNet and Wateen may face further marginalization, consolidating power in the hands of a few major players.
Industry experts have echoed the CCP’s concerns, warning that unchecked consolidation could lead to higher prices, reduced service quality, and slower innovation in Pakistan’s telecom infrastructure, where just a handful of firms already dominate.
While the merger has not been outrightly rejected, the CCP is expected to impose remedies or structural conditions before granting approval. These could include measures to protect smaller competitors, ensure fair pricing, and safeguard consumer interests. The regulator’s final decision will likely set an important precedent for future mergers in the telecom industry.
