ISLAMABD: The Competition Commission of Pakistan (CCP) has warned that Pakistan Telecommunication Company Limited’s (PTCL) non-responsive attitude and failure to submit a clear investment plan are delaying the long-pending merger of Telenor Pakistan with Ufone.
In a presentation to the Senate Standing Committee on IT & Telecom, the CCP raised serious concerns over PTCL’s conduct, pointing out its history of collusive practices, abuse of dominant position, and tendency to challenge Pakistan Telecommunication Authority (PTA) regulations in courts to secure stay orders. The Commission highlighted that this pattern not only weakens regulatory oversight but also raises risks of cross-subsidisation between Ufone and PTCL.
According to the CCP, PTCL holds an LDI (long-distance international) license while Ufone has a CMO (cellular mobile operator) license, but both share joint management. “This creates competition concerns in relation to cross-subsidisation,” the presentation noted. The Commission also criticised PTCL for delaying responses and providing incomplete or overly technical data with missing links. Even after a year since the first open hearing in September 2024, PTCL has failed to provide complete information. As late as August 26, 2025, PTCL shared agreements with Jazz, Zong, and Telenor but withheld details of its agreement with Ufone.
The CCP reminded the Senate panel that PTCL, along with 13 other operators, was previously penalised for its role in the anti-competitive International Clearing House (ICH) agreement. The case led to penalties upheld by the Competition Appellate Tribunal, with Rs 70 million recovered so far. “PTCL abuses its dominant position,” the CCP stressed, underscoring the need for strict scrutiny of the proposed transaction.
The Commission also questioned PTCL’s management of Ufone, noting that the company has consistently incurred losses under PTCL’s control. This track record, CCP said, necessitates a deeper analysis of the merger’s impact.
While acknowledging that telecom mergers can drive growth, innovation, and efficiency, the CCP cautioned that the PTCL-Telenor transaction poses a risk of Substantial Lessening of Competition (SLC). A consolidated entity could further entrench PTCL’s dominance, magnify entry barriers, reduce competitive pressure, and limit consumer choice.
The CCP said it has three options regarding the merger: outright rejection; conditional approval with strict compliance measures; or approval contingent on PTCL signing legally enforceable agreements to safeguard competition. Until then, the Commission made clear that consummation of the transaction would remain prohibited under Section 11(11) of the Competition Act.
The presentation concluded that while mergers may bring efficiency gains, the promised benefits will remain uncertain unless PTCL is held accountable for compliance and transparency, and unless regulators ensure a level playing field for all operators in Pakistan’s telecom market.
