The future of the PTCL-Telenor merger is clouded with suspicion as Pakistan Telecommunication Company Limited (PTCL) and its parent company Etisalat face mounting criticism over unpaid dues, litigation tactics, and a history of distrust.
Read More: CCP Warns PTCL-Telenor Merger Could Be Revoked Over Anti-Competitive Concerns
Etisalat, which holds management control of PTCL, has yet to clear $800 million in long-overdue privatization payments, despite repeated efforts by successive Pakistani governments. Instead of settling dues, the company controversially began selling properties linked to the deal, further deepening mistrust.
The cloud over PTCL’s credibility intensified after its management obtained a stay order against the Pakistan Telecommunication Authority (PTA), raising fresh questions about the company’s willingness to comply with regulatory oversight.
The matter came under spotlight at a press conference where the Competition Commission of Pakistan (CCP) formally approved the PTCL-Telenor merger after an 18-month review. CCP Chairman Dr. Kabir Ahmed Sidhu described the transaction as “one of the most complicated in the world,” while announcing a series of strict conditions to prevent monopolistic abuse.
CCP Member Salman Amin warned, “We can revoke the PTCL-Telenor merger if we detect anti-competitive practices or violations of conditions,” stressing that PTCL and the merged entity must operate separate accounts to avoid cross-subsidization.
Yet, concerns remain. PTCL continues to absorb massive losses from its subsidiary Ufone, dragging its own balance sheet into red. At the same time, the company’s legal battles against PTA suggest a persistent pattern of regulatory defiance.
Under the approval terms, PTCL must maintain independent boards, undergo third-party audits, and comply with strict governance, pricing, and consumer protection measures. Any violations could trigger forced divestiture of assets.
While CCP insists the merger will enhance service quality, speed up 5G rollout, and improve competition, industry insiders argue that PTCL’s record of unpaid dues, litigation, and weak governance has already tainted the deal. For now, the PTCL-Telenor merger stands not as a triumph of telecom consolidation—but as a deal under a heavy shadow of distrust.
