Islamabad: (Report by Zubair Kasuri) The largest deal in Pakistan’s telecom sector, the acquisition of Telenor Pakistan by Pakistan Telecommunication Company Limited (PTCL) and its subsidiary Ufone, remains entangled in regulatory hurdles. The Securities and Exchange Commission of Pakistan (SECP) has yet to issue formal approval for this significant transaction.
According to the latest developments, the agreement between PTCL Ufone and Telenor for the acquisition of Telenor Pakistan was initially set to expire in June 2025. However, the senior management of Telenor Pakistan has confirmed that, at the request of PTCL Ufone, the agreement’s term has been extended until September 30, 2025. This extension provides PTCL Ufone with more time to obtain the necessary legal approval from the SECP, which is still pending.
Subscriber Figures and Market Position:
As per the latest available data from the Pakistan Telecommunication Authority (PTA), which is typically released monthly, Telenor Pakistan has approximately 44.14 million subscribers, while Ufone has over 24.3 million subscribers. Following this acquisition, the combined entity of PTCL/Ufone and Telenor will become one of the largest telecom operators in Pakistan, which could significantly impact the competitive landscape in the market. (It should be noted that the final subscriber figures for September 2025 will only be available after that date).
Impact of Approval Delays:
Telenor’s mobile phone management states they are fully prepared for the sale of Telenor Pakistan but are awaiting the “green light” from the Government of Pakistan. Responsible sources within the management further stated that due to a delay of over a year, Telenor Pakistan has incurred losses amounting to billions of rupees, and its subscriber base is rapidly declining. The extraordinary delay in this acquisition process has also halted the network expansion and improvement plans of both Telenor and Ufone for over a year, severely impacting their networks.
Effects on Consumers and the Market:
A significant consequence of this situation is that the prolonged delay in the acquisition process has led to increased business for other mobile phone companies (Jazz and Zong). Consumers are shifting towards them in search of better services and coverage. However, overall, mobile phone users have faced difficulties due to the stagnation in network improvements and delays in accessing new technologies (such as 5G). Experts suggest that protracted delays in such large deals negatively affect not only the financial stability of the companies but also the overall development of the telecom sector in the country. This situation indicates that the prompt completion of this agreement is crucial for both companies, consumers, and Pakistan’s telecom industry.
Telenor Pakistan and PTCL Ufone Agreement Extended Until September 2025, Regulatory Approvals Pending
