Islamabad, Sept. 25 (Zubair Kasuri) – The Competition Commission of Pakistan (CCP) is set to conduct a series of hearings on September 30, October 2, and October 3 to meticulously examine the proposed merger between Telenor Pakistan and Pakistan Telecommunication Company Limited (PTCL)/Pakistan Telecommunication Mobile Limited (PTML).
This landmark deal, estimated at PKR 108 billion, involves PTCL acquiring 100% of Telenor Pakistan’s shares, a move that could reshape the country’s telecom landscape.
The hearings are part of the CCP’s Phase II review, which delves into the potential consequences of the merger on market competition. The commission will consider crucial aspects such as potential market dominance, impact on smaller operators, and the overall effect on service quality and pricing for consumers.
Concerns have been raised by industry experts and stakeholders regarding the possible concentration of market power resulting from the merger. They are also apprehensive about the impact on smaller operators and the potential for decreased competition leading to higher prices and diminished service quality.
The CCP’s decision, which is expected after the conclusion of the hearings, will determine the fate of the merger. It could be approved unconditionally, approved with certain conditions, or outright rejected.
If approved, the merger will lead to the creation of a major player in Pakistan’s telecom industry, combining the strengths of both PTCL and Telenor. The final decision will significantly impact the future of the telecom sector and consumers in Pakistan.
The CCP initiated its 90-day review period following PTCL’s submission of the pre-merger application on March 6, 2024. The commission’s assessment will focus on ensuring the merger’s adherence to the Competition Act, 2010.
Key Details
* Merger Value: PKR 108 billion
* Entities Involved: Telenor Pakistan B.V. (acquired), PTCL (acquiring), Orion Towers Private Limited (related)
* CCP Review Phase: Phase II
* Hearings Dates: Sept. 30, Oct. 2, Oct. 3
The hearings represent a crucial step in determining the future of this high-stakes merger, and their outcome will be closely watched by the industry and consumers alike.
