The Competition Commission of Pakistan (CCP) is undertaking a Phase II Merger analysis to assess the proposed merger between Pakistan Telecommunication Company Limited (PTCL) and Telenor Pakistan. This detailed review is focused on evaluating the potential benefits of the merger, such as cost efficiencies, economies of scale, and improvements in network coverage and service quality.
However, concerns have been raised about the possible reduction in the number of cellular mobile operators from four to three, which could impact competition in Pakistan’s telecom market. Additionally, there are worries about the potential for a ‘disproportionate’ share of capacity and spectrum, which could disadvantage competitors.
The CCP is currently analyzing various segments of the telecom market, including Retail LDI Fixed-line Telecommunication, Retail Mobile Telecommunication, Wholesale Domestic Leased Lines, Wholesale IP Bandwidth, and Individual Mobile/Fixed Interconnect, to address these competition concerns. The Phase II review, which began following PTCL’s pre-merger application in March 2024, is expected to be completed within 90 working days.
