The merger between Pakistan Telecommunication Company Ltd’s (PTCL) Ufone and Telenor Pakistan, initially announced in December 2023, has encountered a delay due to a regulatory hurdle. The merger, which would create the largest mobile operator in Pakistan with over 75 million subscribers, is awaiting clearance from the Securities and Exchange Commission of Pakistan (SECP).
Although the Competition Commission of Pakistan (CCP) has already approved the deal after extensive hearings, the SECP has been conducting its own review for the past six months. The SECP was expected to announce a decision by the end of December 2024, but the delay has raised concerns about the impact on the telecom sector and foreign investment in Pakistan.
Sources suggest that the delay could be influenced by other telecom companies who may be disadvantaged by the merger and ongoing disputes, such as PTCL’s $800 million debt with Etisalat. Once SECP approval is granted, the Pakistan Telecommunication Authority (PTA) is prepared to fast-track the merger’s approval.
The merger, which includes plans for 2,600 new mobile towers, is expected to boost competition in Pakistan’s telecom market and improve service quality.
