In a recent development, the Auction Advisory Committee has called upon the federal government to intervene in the ongoing Telenor-Ufone merger, citing significant delays that are impacting the upcoming 5G spectrum auction. The decision was made during a meeting chaired by Federal Finance Minister Muhammad Aurangzeb at the Finance Division.
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The Pakistan Telecommunication Authority (PTA) presented a detailed briefing on the country’s preparations for the 5G spectrum auction, highlighting the challenges posed by the unresolved Telenor-Ufone acquisition. According to sources, the PTA engaged an international consultant in November 2024 to assess the telecom market and engage with key stakeholders. The consultant has completed the assessment, and the pricing structure, auction design, and network rollout plans are expected to be finalized soon.
However, the PTA pointed out that the Competition Commission of Pakistan (CCP) has yet to decide on the acquisition, creating uncertainty for both companies regarding their participation in the spectrum auction. The unresolved case is preventing the PTA from determining whether the telecom market will operate with three or four players, affecting the formulation of a spectrum cap.
Additionally, ongoing litigation over key spectrum bands, including the 2600 MHz and 1800 MHz bands, poses risks to the timely launch of 5G services in Pakistan. The CCP has completed its Phase I review of the Telenor-Ufone merger, concluding that the deal could substantially lessen competition in the telecom sector. The Phase II review process has been complicated by difficulties in assessing market dominance and increased industry concentration.
Despite securing financial backing from an International Finance Corporation (IFC)-led consortium, regulatory delays continue to hinder the finalization of the deal, impacting the overall telecom market and 5G rollout plans. The meeting was attended by several high-ranking officials, including the Minister for Industries and Production, the Minister of State for Information Technology and Telecommunication, the Chairman of PTA, and other senior officials.
The call for government intervention underscores the urgency of resolving the merger delays to ensure the successful launch of 5G services in Pakistan. As the telecom sector awaits a resolution, the future of the Telenor-Ufone merger remains uncertain.
