PTA gives go-ahead for Telenor, Ufone merger

Pakistan’s telecom landscape is set for a major shift as the Pakistan Telecommunication Authority (PTA) has granted technical approval for the merger of Telenor Pakistan and Ufone.

With the No Objection Certificate (NOC) in place, Ufone—part of PTCL—can begin integrating operations with Telenor Pakistan. The next phase involves legal approval through the Islamabad High Court, with the amalgamation process expected to take around four weeks, including regulatory checks with institutions such as the State Bank of Pakistan and the Federal Board of Revenue.

On the operational side, both companies will begin backend integration, including spectrum alignment and consolidation of telecom infrastructure. The merged entity will control approximately 26,000 telecom towers, with plans to reduce duplication where towers are located in close proximity. However, PTA has imposed conditions to protect shared infrastructure and ensure fair market practices.

The regulator has also mandated that franchisees must receive at least six months’ notice before any contract termination, ensuring a smoother transition for stakeholders.

Customers will experience continuity, as existing Telenor SIMs will continue functioning on the Ufone network.

Post-merger, the combined subscriber base is expected to reach around 72.45 million users, positioning the new entity as a strong competitor to Jazz and Zong. However, analysts anticipate a potential 10% drop in subscribers due to overlapping SIM ownership among users.

The approval marks a significant consolidation move in Pakistan’s telecom sector, aimed at improving operational efficiency while reshaping competitive dynamics.