CCP Orders PTCL to Unbundle Operations Following Telenor Merger Approval

ISLAMABAD — The Competition Commission of Pakistan (CCP) has directed Pakistan Telecommunication Company Ltd (PTCL) to unbundle its operations after approving its merger with Telenor Pakistan, aiming to prevent anti-competitive behavior and ensure market transparency.

According to the CCP’s detailed order, the newly merged entity — combining Ufone and Telenor Pakistan (MergeCo) — must remain operationally and financially independent from PTCL and its other business units. PTCL has formally committed to complying with the commission’s directives.

The merger positions the new MergeCo as Pakistan’s second-largest cellular mobile operator, overtaking Zong and trailing Jazz. While Ufone has historically been loss-making, the CCP requires MergeCo to demonstrate profitability, with a third-party evaluator submitting biannual performance reports.

To maintain independence, the CCP has ordered PTCL and MergeCo to operate with separate financial accounts, boards, and management teams. Individuals are barred from holding roles in both entities simultaneously, and former executives or directors must observe a three-year cooling-off period before joining the other organization.

The order further prohibits the exchange of sensitive commercial data between PTCL and MergeCo. Any changes to interconnection circuits, pricing, or capacity that affect other telecom operators must receive prior approval from the Pakistan Telecommunication Authority (PTA).

Palwasha Khan, Chairperson of the Senate Standing Committee on IT and Telecom, welcomed the move, saying the oversight will protect public interest as PTCL is a state-owned entity. The committee will review MergeCo’s quarterly accounts to ensure compliance and profitability.

A senior CCP official warned that failure to comply with the order could lead to divestment of PTCL’s telecom infrastructure or parts of its business, as outlined under Clause 13.19. Analysts noted that the separation would enhance transparency, curb cross-subsidization, and promote fair competition in Pakistan’s telecom market.