Islamabad, Aug 20: The planned merger of Telenor Pakistan (Private) Limited (Telenor) and Pakistan Telecommunication Company Limited (PTCL) is being investigated by the Competition Commission of Pakistan (CCP) through an extensive Phase II Merger examination.
Important stakeholders have a chance to voice their concerns to CCP on the merger’s possible effects on Pakistan’s telecom industry.
The possible advantages of the merger, including as cost savings and scale economies that can improve financial stability, are being assessed by CCP. The investigation will also look at whether the combination could result in more capacity, a wider network coverage area, and better customer service quality.
The possible drop from four to three cellular mobile operators in Pakistan is one of the main issues brought up, as this could change the competitive environment. Concerns were also raised about a potential “disproportionate” allocation of spectrum and capacity that would hurt the competitor’s operations.
To protect competition concerns, the Commission is now examining the following markets: retail LDI fixed-line telecommunication; retail mobile telecommunication; wholesale domestic leased lines; wholesale IP bandwidth; and individual mobile/fixed-interconnect market.
CCP is actively monitoring these concerns, especially the possibility of establishing “capacity asymmetry” in the relevant market and the market share patterns of Pakistan’s mobile network capacity.
Pre-merger applications were submitted by PTCL on March 6, 2024. By statute, CCP had thirty days to examine the application and issue a Phase I order. Phase 1 order was announced on May 3, 2024, according to the competition law’s timeline.
Pre-merger applications will be taken into consideration in Phase II review as a result of Phase-I order analysis suggesting that there may be a possible impact on competition in the telecom sector. CCP has 90 working days to complete this detailed review and issue its order.
