Islamabad, The Competition Commission of Pakistan (CCP) has moved the proposed merger between Pakistan Telecommunication Company Limited (PTCL) and Telenor Pakistan into a second phase of review, indicating significant scrutiny over competition concerns in the telecom sector.
According to Competition Commission of Pakistan, the initial review confirmed that the merger meets the presumption of dominance as defined in the Competition Act, 2010, prompting a more comprehensive analysis of its potential effects on market competition and consumer services. The transaction involves PTCL acquiring full ownership of Telenor Pakistan and Orion Towers from Telenor Pakistan BV.
This phase II review will focus on several key areas within the telecom market, including retail mobile and fixed-line telecommunications, wholesale domestic leased lines, wholesale IP bandwidth, and individual mobile/fixed interconnect services across Pakistan. The review process is essential to ensure that the merger does not adversely affect competition or consumer interests in the telecom sector.
The CCP’s thorough approach mirrors its handling of previous significant telecom mergers, such as the Mobilink and Warid merger, where it imposed conditions to mitigate potential adverse effects on competition and ensure consumer protection. This rigorous scrutiny underscores CCP’s commitment to maintaining fair competition within Pakistan’s evolving telecom landscape.