PTCL–Telenor Merger Under CCP Fire: Monopoly in the Making?

The Competition Commission of Pakistan (CCP) has raised pointed concerns over the proposed merger of Pakistan Telecommunication Company Limited (PTCL) and Telenor Pakistan, warning that the deal could distort market competition and harm consumer interests.

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Under Section 11(6) of the Competition Act, CCP is conducting a Phase II review of the merger — an advanced and more critical stage of scrutiny reserved for transactions that may have far‑reaching implications on market structure. During the latest hearing, PTCL’s executives and legal team briefed the CCP bench on their business plan, merger rationale, and regulatory accounts.

The bench, comprising CCP Chairman Dr. Kabir Ahmed Sidhu, Member Salman Amin, and Member Abdul Rasheed Sheikh, grilled PTCL officials with tough questions on post‑merger operations, transparency in regulatory accounts, and the real benefits to consumers. The Commission also demanded additional information to fully assess the competitive and consumer impact of the transaction.

According to market observers, PTCL — already controlling a vast share of Pakistan’s broadband backbone and tower infrastructure — could, through this merger, significantly tighten its grip on the telecom sector. Previous CCP inquiries have cautioned against such concentration, warning it can lead to reduced service quality, higher prices, and fewer choices for consumers.

The ongoing Phase II review is specifically focused on how the transaction might reshape Pakistan’s telecom and tower markets — potentially tipping the balance of power towards a single dominant player. Until the CCP’s findings are complete, the proposed merger remains under a regulatory cloud.