The Competition Commission of Pakistan (CCP) is currently conducting an in-depth phase-II merger analysis in response to the proposed merger between Pakistan Telecommunication Company Limited (PTCL) and Telenor Pakistan (Private) Limited (Telenor).
According to a press release issued here, the CCP is providing key stakeholders with an opportunity to present their concerns about the potential impact of the merger on Pakistan’s telecom market.
“CCP is evaluating the potential benefits of the merger, including cost efficiencies and economies of scale that could enhance financial stability. The analysis will further consider whether the merger could lead to an expansion of network coverage, an increase in capacity, and an improvement in the quality of service for consumers,” read the press statement.
One of the primary concerns raised is the potential reduction in the number of cellular mobile operators in Pakistan from four to three, which could alter the competition landscape, it added further.
Moreover, concerns were also voiced regarding the possible ‘disproportionate’ share of capacity and spectrum that could harm the competitor’s business.
The Commission, presently, is analysing the Retail LDI Fixed-line Telecommunication Market, Retail Mobile Telecommunication Market, Wholesale Domestic Leased Lines, Wholesale IP Bandwidth and Individual Mobile/Fixed Interconnect Market to safeguard competition concerns.
CCP is closely examining these issues, particularly the market share dynamics of Pakistan’s mobile network capacity and the risk of creating ‘capacity asymmetry’ in the relevant market.
PTCL filed a pre-merger application on 6th March 2024. CCP had 30 days to review the application and issue a Phase I order, according to its law. Phase 1 order was announced on May 03, 2024, within the timescale specified in the competition law.
Phase-I order analyzed that there may be some potential impact on competition in the telecom sector therefore, the pre-merger application will be considered in Phase II review. CCP has 90 working days to complete this detailed review and issue its order.
