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Saturday May 18, 2024

CCP launches phase 2 reviewof PTCL’s Telenor acquisition

By Our Correspondent
May 09, 2024
The front facade of the PTCL headquarter in Islamabad. — APP/File
The front facade of the PTCL headquarter in Islamabad. — APP/File

KARACHI: The Competition Commission of Pakistan (CCP) has initiated a Phase 2 review of Pakistan Telecommunication Company Limited's (PTCL) acquisition of Telenor Pakistan due to the deal's significant impact on market competition, the telecom company said in a statement on Wednesday.

"Owing to the size of the transaction as well as its impact on market competition, CCP has decided to undertake a more detailed assessment in Phase 2 of the review process," the PTCL said. "This decision also aligns with CCP's precedence for evaluating mergers & acquisitions within the telecom industry."

The statement said that the CCP has successfully concluded Phase 1 of its review of PTCL's acquisition of Telenor Pakistan."This strategic transaction, involving the consolidation of telecom services, marks a significant development in the telecommunications sector for the growth and improvement of services for the customers."

PTCL expressed confidence in the review process and "hopes for expeditious final clearance and is actively cooperating with CCP, providing comprehensive information and documentation to facilitate a thorough evaluation".

"As the telecom landscape evolves, PTCL reaffirms its dedication to innovation, customer satisfaction, industry best practices and also to further advance the ambition of the company towards the betterment of the customers, the company as well as to the economic growth and digital transformation journey," the statement added.

For the customers in particular, the benefits revolve around various domains including superior network coverage in both urban and rural areas by combining the networks of two operators. The consolidation will result in accelerated growth and improvement in broadband services. It will also boost 4G services as well as increase data speeds resulting from combining the data capacity/spectrum of both networks.

This strategic initiative will also offer customers added convenience through improved accessibility, achieved by expanding touchpoints such as company-operated service centres, increasing the footprint of channel partners, and significantly expanding retail presence.

Additionally, customers will benefit from an expanded product portfolio, offering a wider range of products from both companies.The collaboration between the two companies will expedite innovation, leveraging a larger customer base to develop more innovative and experiential products.

Moreover, the combined entity will possess greater capacity to invest in future technologies to offer customers enhanced offerings, said the statement. Furthermore, the participation of foreign financial institutions in deal financing, along with advancements in the telecom sector, holds the promise of attracting more international players to Pakistan, offering advanced digital products and services.