CCP continues review of PTCL’s acquisition of Telenor Pakistan

KARACHI: The Competition Commission of Pakistan (CCP) is actively engaged in an extensive Phase II merger review of Pakistan Telecommunication Company Limited’s (PTCL) proposed acquisition of 100 per cent shareholding in Telenor Pakistan (Pvt) Limited and Orion Towers (Pvt) Limited.

During the most recent hearing, Senior Counsel for PTCL Rahat Kaunain Hassan, accompanied by Counsel Mariam Saleem Malik, responded to concerns raised by competitors, including Wateen, Jazz and CM Pak (Zong), in earlier hearings. The CCP Bench facilitated discussions, ensuring that all stakeholders, including PTCL, Wateen, Jazz and Telenor, had the opportunity of being heard.

PTCL highlighted the competitive advantages of the merger, particularly the expected reduction in market share discrepancies between leading players. The company also addressed concerns about potential risks related to input and customer foreclosure, emphasising evaluation principles and the merger's anticipated efficiencies, such as cost savings, enhanced network capacity, and advancements in technology, including the rollout of 5G services.

PTCL assured the bench that the merged entity, referred to as MergeCo, would comply with the spectrum sharing framework once issued by the Pakistan Telecommunication Authority (PTA), adhering to all regulatory requirements.

In contrast, Jazz and Wateen reiterated their apprehensions regarding crucial industry issues, notably tariff regulations, infrastructure sharing, national roaming and the operations of cellular mobile operators (CMOs).

Throughout the review process, CCP officials, including Director-General/Registrar Shahzad Hussain, Barrister Ambreen Abbasi, Hafiz Naeem, and others from the legal and merger departments, raised important questions to ensure a comprehensive evaluation of the merger’s implications.