CCP Announces Shocking PTCL-Telenor Merger Decision

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CCP Announces Shocking PTCL-Telenor Merger Decision

The Competition Commission of Pakistan (CCP) has preliminarily determined that Pakistan Telecommunication Company Limited’s (PTCL) proposed acquisition of Telenor Pakistan (Private) Limited (TP) and Orion Towers Private Limited (OT) could result in a significant decrease in competition within the telecommunications sector.

 This concern arises from the previous acquisition of Warid Telecom (Private) Limited by Pakistan Mobile Telecommunications Limited in 2016, which reduced the number of network operators. With the merger of PTCL and Telenor Pakistan, one of the remaining four operators would be eliminated from the market.

The CCP is worried that this reduction in competition might lead to higher prices, reduced choice, or diminished quality of services for customers. Therefore, the transaction will undergo a thorough Phase 2 analysis.

PTCL, a publicly listed company, specializes in various telecommunication services, including cellular mobile telephony, Wireless Local Loop, Direct-to-Home television, and financial services through its subsidiaries across Pakistan, Azad Jammu & Kashmir (AJK), and Gilgit-Baltistan (GB).

Telenor Pakistan (Private) Limited and Orion Towers Private Limited are wholly-owned subsidiaries of Telenor Pakistan BV (TPBV) and provide cellular mobile and related services in Pakistan, AJK, and GB.

Established in 1995, PTCL has been identified as a Significant Market Power (SMP) Operator in Wholesale Domestic Leased Lines, Wholesale IP Bandwidth, and Retail LDI Fixed-Line Telecommunication market by the Pakistan Telecommunication Authority (PTA).

The CCP found that the merger would likely diminish competition in markets with limited competitors, potentially leading to unfavorable outcomes for customers. The CCP’s objective is to enhance services and product offerings for Pakistani consumers by fostering increased competition within the telecom industry.

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