CCP holds fourth hearing on PTCL’s acquisition of Telenor Pakistan and Orion Towers

By Our Correspondent
October 23, 2024
The picture shows a building of Pakistan Telecommunication Company Limited (PTCL). — PPI/File
The picture shows a building of Pakistan Telecommunication Company Limited (PTCL). — PPI/File

KARACHI: The Competition Commission of Pakistan (CCP) has proceeded with the fourth hearing in its Phase II Merger Review of PTCL’s proposed acquisition of 100 per cent shareholding in Telenor Pakistan (Private) Limited and Orion Towers (Private) Limited.

The in-depth review, led by a bench comprising Chairman Dr Kabir Ahmed Sidhu and members Salman Amin and Abdul Rashid Sheikh, is focused on assessing the potential impact of the merger on market competition and the telecommunications sector.

The hearing has been adjourned until October 24.A central issue raised during the hearing was the allocation of spectrum, a scarce resource that plays a crucial role in determining market power for mobile network operators (MNOs). Each frequency band offers distinct advantages in terms of efficiency and coverage. Post-merger, the combined entity is expected to control 34.4 per cent of the total allocated spectrum in the retail mobile telecommunications market, raising concerns about the potential for market dominance.

The ongoing review analyses concerns over market power concentration and competitive dynamics, with a particular focus on the broader implications for Pakistan’s telecommunications landscape. During the most recent hearing, submissions were presented by External Counsel for CM Pak (Zong) Asad Ladha, alongside Sameen Qureshi. The Pakistan Telecommunication Authority (PTA) was represented by Director General (Wireless–Licensing) Amer Shahzad. The CCP bench also provided PTCL, Wateen, Jazz and Telenor the opportunity to share their views on the merger’s impact.

In previous hearings, legal counsel for PTCL, Wateen Telecom and Jazz provided their insights into the potential implications of the merger. CCP officials, including Director-General/Registrar Shahzad Hussain; Barrister Ambreen Abbasi; Hafiz Naeem; Arshad Javed from the Legal Department; and Head of the Merger Department Marryum Pervaiz, have been actively involved in the review process.