Pakistan’s telecom operators, including Wateen and Jazz, have expressed concerns regarding the potential anti-competitive implications of Pakistan Telecommunication Company Limited’s (PTCL) acquisition of Telenor Pakistan.
During a hearing held by the Competition Commission of Pakistan (CCP), industry stakeholders argued that the deal could enhance PTCL’s market dominance, resulting in an uneven playing field, particularly concerning spectrum allocation.
Wateen openly opposed the acquisition, voicing worries about market concentration and its effects on competition within the sector. Jazz also called for regulatory safeguards, recommending that the CCP introduce conditions related to interconnection and tariff structures to prevent a recurrence of issues experienced during the Warid merger.
Jazz’s legal counsel emphasized PTCL’s existing strength in upstream services such as spectrum and IP bandwidth, arguing that acquiring additional assets could render PTCL’s position unassailable and potentially marginalize private competitors.
CCP Chair Dr. Kabir Ahmed Sidhu questioned PTCL representatives about their due diligence process, underscoring the need for clarity on how the acquisition would impact the competitive landscape.
In response, PTCL’s counsel, Rahat Kaunain Hassan, explained that the acquisition would focus solely on Telenor’s telecom operations, with plans for further integration to be shared as they develop. PTCL presented data indicating that post-acquisition, market balance would be preserved, as Jazz would still retain the largest subscriber base.
Industry officials warned that unchecked consolidation could stifle innovation and limit consumer choice, with state-owned enterprise (SOE) dominance in regulatory environments already deterring foreign investment.
Experts stressed that any approval of PTCL’s acquisition of Telenor must include safeguards to prevent monopolistic practices and ensure a competitive telecom landscape.
