Telenor-PTCL Merger Under CCP Scrutiny Ahead of Spectrum Auction
Deal News | Feb 15, 2025 | EIN
The Competition Commission of Pakistan is reviewing the proposed merger between Telenor Pakistan and PTCL ahead of an upcoming spectrum auction. The review, detailed by State Minister for Information Technology Shaza Fatima Khawaja, aims to identify potential risks of competition reduction in the telecommunications market. PTCL has submitted a pre-merger application seeking to acquire 100% of Telenor Pakistan's shareholding. The review has completed its first phase and is moving onto Phase II, where challenges such as data accuracy and market dominance are being addressed. PTCL’s unique integrated license and lack of financial transparency have raised concerns about cross-subsidization and an uneven playing field in the sector. The CCP is considering regulatory interventions to address these issues, including ensuring fair spectrum allocation post-merger.
Sectors
- Telecommunications
Geography
- Pakistan – The events discussed in the article, such as the merger review and spectrum auction, are taking place in Pakistan.
Industry
- Telecommunications – The article focuses on the telecommunications industry, specifically the proposed merger of two major telecom operators in Pakistan, PTCL and Telenor Pakistan.
Financials
- 100% shareholding – The extent of Telenor Pakistan's shares that PTCL seeks to acquire.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Telenor Pakistan | Target | Company | A major telecommunications provider in Pakistan, which PTCL is planning to acquire. |
| PTCL (Pakistan Telecommunication Company Limited) | Bidding Company | Company | The telecommunications company planning to acquire Telenor Pakistan. |
| Competition Commission of Pakistan (CCP) | Regulatory Body | Government | The government body responsible for reviewing the merger to ensure competitive fairness in the market. |
| Pakistan Telecommunication Authority (PTA) | Regulatory Body | Government | The authority involved in the spectrum auction process and public consultations for telecom services. |
| Shaza Fatima Khawaja | Government Official | Person | State Minister for Information Technology and Telecommunication, who provided information on the merger review process. |
| Saad Waseem Sheikh | Parliamentary Secretary | Person | Parliamentary Secretary for Finance and Revenue, who detailed the merger application status to the House. |