CCP Concludes Public Hearings on PTCL’s Acquisition of Telenor Pakistan

The Competition Commission of Pakistan (CCP) Thursday concluded the Phase II Merger Review of PTCL’s proposed acquisition of 100 percent shareholding in Telenor Pakistan (Private) Limited and Orion Towers (Private) Limited.  In an in-depth analysis, the CCP has thus far held five extensive hearings, beginning on September 30, 2024, with subsequent hearings on October 2nd, 3rd, 22nd, and 24th, 2024. The review is being conducted by a Bench, led by Chairman Dr Kabir Ahmed Sidhu, alongside Members Salman Amin and Abdul Rashid Sheikh.  During the most recent hearing, Rahat Kaunain Hassan, Senior Counsel for PTCL, accompanied by Mariam Saleem Malik, Counsel for PTCL, presented responses to the concerns raised by Wateen, Jazz, and CM Pak (Zong) in earlier hearings. The CCP Bench facilitated discussions, offering all stakeholders, including PTCL, Wateen, Jazz, and Telenor, the opportunity to provide their respective comments, CCP said in a press release.  PTCL emphasized the merger’s competitive benefits, particularly highlighting the expected reduction in the market share gap between the two leading players. PTCL also addressed potential risks of input and customer foreclosure, outlining the evaluation principles, while highlighting the merger’s efficiencies, including cost savings, increased network capacity, accelerated technological advancements, and the roll-out of 5G services.   PTCL assured the Bench that the MergeCo would fully comply with the Spectrum Sharing Framework, once issued by the Pakistan Telecommunication Authority (PTA), thereby adhering to all regulatory requirements.  Jazz and Wateen, in turn, reiterated their concerns over critical industry matters, particularly tariff regulations, infrastructure sharing, national roaming, and the operations of Cellular Mobile Operators (CMOs).  According to sources, PTCL also expressed confidence in the potential of the deal to improve the country’s telecom industry by fostering competitiveness and efficiency, long-term sustainability, and driving higher innovation to introduce new products and services.  PTCL also believes that the new entity would be more financially robust, reducing risks for investors and highlighting Pakistan’s path toward economic reform and modernization, making it an appealing destination for foreign direct investment (FDI).   The statement issued by the CCP said it is committed to ensuring that any potential competitive risks arising from the merger are fully addressed, safeguarding market competition and consumer welfare.