The Competition Commission of Pakistan (CCP) has raised serious concerns over Pakistan Telecommunication Company Limited (PTCL), accusing it of obstructing scrutiny and withholding critical information in the proposed Telenor Pakistan–Ufone merger. The regulator warned that, if unchecked, the deal could further entrench PTCL’s dominance in the telecom sector.

In a briefing to the Senate Standing Committee on IT & Telecom, the CCP highlighted a recurring pattern of non-cooperation by PTCL, citing its “non-responsive attitude,” past collusive practices, and tendency to challenge Pakistan Telecommunication Authority (PTA) regulations in court to delay enforcement.

PTCL’s Track Record Under Fire

The Commission recalled PTCL’s role in the controversial International Clearing House (ICH) agreement, where 14 operators colluded to manipulate international call traffic. PTCL was penalized, with Rs 70 million recovered in fines.

“PTCL abuses its dominant position,” the CCP told senators, arguing that past behavior casts doubt on its ability to manage a major merger responsibly. The regulator also noted that Ufone has remained loss-making under PTCL, raising questions about whether absorbing Telenor would improve competitiveness or merely expand market power.

Withheld Data and Delays

The CCP stated that PTCL repeatedly delayed the merger review by submitting incomplete and overly technical data, often missing key links and withholding crucial agreements.

Even after more than a year since the first hearing in September 2024, PTCL has yet to fully comply. As recently as August 26, 2025, the company submitted agreements with Jazz, Zong, and Telenor, but failed to provide details of its agreement with Ufone.

This evasiveness, the CCP warned, risks cross-subsidisation between PTCL’s long-distance international (LDI) license and Ufone’s cellular license, blurring regulatory oversight and delaying effective scrutiny.

READ MORE:

TikTok to Rebuild U.S. Algorithm Under Trump-Era National Security Deal

PTCL–Telenor Merger Risks

While acknowledging that telecom mergers can drive efficiency and innovation, the CCP cautioned that this transaction could substantially lessen competition in Pakistan’s telecom market. A consolidated PTCL-Ufone-Telenor entity could:

• Cement PTCL’s dominance in fixed-line and mobile services

• Reduce competitive pressure on pricing and service quality

• Increase entry barriers for new operators

• Limit consumer choice in an already concentrated market

CCP’s Options

The regulator is considering three potential outcomes:

1. Outright rejection of the merger

2. Conditional approval with strict compliance measures

3. Approval contingent on PTCL signing legally enforceable agreements to protect competition

Until a decision is reached, the CCP stressed that the merger cannot proceed under Section 11(11) of the Competition Act.

Why This Matters

The CCP’s firm stance signals deep mistrust of PTCL, viewed as a repeat offender in anti-competitive practices. For Pakistan’s telecom market, dominated by a few major players, the outcome of this merger will determine whether consumers benefit from efficiency or face a tighter monopoly.

“The promised benefits of telecom mergers will remain uncertain unless PTCL is held accountable for compliance and transparency,” the Commission concluded, emphasizing the need for strong regulatory enforcement before the deal moves forward.