The Competition Commission of Pakistan (CCP) is on the verge of announcing its decision regarding Pakistan Telecommunication Company Limited’s (PTCL) proposed acquisition of Telenor Pakistan Pvt Ltd and Orion Towers Pvt Ltd. This follows the completion of the Phase-II review, a process initiated to assess potential impacts on market competition and dominance.
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The CCP’s mandate is to promote fair competition across all economic sectors, ensuring that mergers and acquisitions do not adversely affect market dynamics. In this context, the Commission has been meticulously evaluating the PTCL-Telenor deal, considering its substantial value of approximately $500 million and its potential long-term economic implications.
This acquisition has drawn parallels to the 2016 merger between Jazz (formerly Mobilink) and Warid Telecom, which significantly reshaped Pakistan’s telecommunications landscape. At that time, the CCP conducted a Phase-II review to address concerns related to market concentration and competitive balance.
In the current scenario, stakeholders, including competitors like Zong, have raised apprehensions about the potential for an uncompetitive environment post-acquisition. PTCL, however, has presented data suggesting that even after the merger, market equilibrium would be maintained, with Jazz continuing to hold the largest subscriber base.
The CCP’s forthcoming decision will likely include remedies to mitigate any adverse effects on competition, aiming to prevent issues such as price increases or diminished service quality for consumers. The Commission’s careful approach underscores its commitment to preserving a competitive telecommunications sector in Pakistan.
