PTCL-Telenor Merger Nears Approval as CCP Prepares New Regulatory Conditions
The Competition Commission of Pakistan (CCP) is expected to greenlight the long-pending merger between Pakistan Telecommunication Company Limited (PTCL) and Telenor Pakistan, subject to a new set of regulatory conditions, sources revealed.
Similar to the conditions imposed during the Warid-Jazz merger, the CCP plans to enforce safeguards to ensure fair competition in the telecom sector. These conditions come after PTCL sought the assistance of the Special Investment Facilitation Council to accelerate the stalled merger process.
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The merger proposal had been delayed for nearly a year due to PTCL’s inability to furnish required documentation and respond to the CCP’s comprehensive inquiries. Furthermore, officials from the Ministry of Information Technology and Telecommunication disclosed that PTCL also did not adequately address concerns raised by the Pakistan Telecommunication Authority (PTA), which had issued multiple notices regarding PTCL’s dominant position in the market.
In the second phase of its review, the CCP requested additional data from the PTA to assess whether the merger could potentially harm market competition or lead to monopolistic practices.
Additionally, the issue of outstanding financial dues remains unresolved. Despite an earlier agreement to release $640 million, around $800 million is still pending, further complicating the merger proceedings.
