In a significant move for the telecom sector, the Competition Commission of Pakistan (CCP) has granted Phase II approval for the PTCL Gets CCP Approval for Telenor Acquisition in Pakistan. This milestone sets the stage for one of the largest consolidations in the country’s telecom industry, paving the way for better services, expanded coverage, and stronger digital infrastructure across Pakistan.
The agreement was formalized on August 14, 2024, when the Pakistan Telecommunication Company Limited (PTCL) signed a Share Purchase Agreement (SPA) with Telenor Pakistan BV (TPBV) to acquire both Telenor Pakistan (Private) Limited and Orion Towers (Private) Limited.
PTCL’s Response to CCP’s Approval
Following the announcement, PTCL issued a statement expressing appreciation for the CCP’s transparent and detailed review. The company thanked its customers, partners, and the wider telecom community for their trust and support. PTCL also reassured stakeholders of its commitment to following all legal and regulatory requirements as the acquisition process moves forward.
What Phase-II Approval Means
The Phase-II review by the CCP was the most comprehensive in its history, carried out under the Competition Act, 2010 and Merger Control Regulations, 2016. The Commission applied the Substantially Lessening of Competition (SLC) test to ensure the deal would not harm fair competition in the market.
The CCP concluded that the acquisition meets all regulatory standards and does not pose any major competition concerns. With this approval, the transaction can proceed, though final completion still depends on other corporate approvals and legal formalities.
Benefits Expected from PTCL’s Acquisition of Telenor Pakistan
This acquisition is expected to reshape Pakistan’s telecom industry, offering several benefits for customers and the sector as a whole:
- Stronger Network Coverage: Integration of PTML (Ufone) and Telenor’s networks will improve connectivity nationwide.
- Better Customer Experience: Enhanced services and reliable support for millions of users.
- Innovative Digital Solutions: New products and services aligned with the government’s Digital Pakistan vision.
- Improved Efficiency: Streamlined operations and reduced duplication of resources.
- Increased Competition: A stronger player in the market pushing for innovation and inclusivity.
This consolidation is widely seen as a step forward in making Pakistan’s telecom industry more competitive and customer-focused.
Pending Approvals and Legal Formalities
While CCP’s approval is a major achievement, the acquisition is still not fully closed. The following steps remain:
- Securing additional regulatory and corporate approvals
- Completion of legal documentation and agreements
- Formal signing of remaining instruments
Only after these conditions are met will the acquisition officially conclude.
Inside the CCP Review Process
The CCP’s review, conducted between September 2024 and August 2025, was one of the most detailed investigations in its history. Key elements included:
- Five open hearings with industry stakeholders
- Confidential sessions with PTCL, Telenor, and other telecom operators
- Collection of detailed data such as:
- Financial records
- Interconnection agreements
- Business plans
The Commission also analyzed various telecom sub-markets, including:
- Cellular mobile services
- Long-distance and international (LDI) services
- Fixed-line connections
- Leased lines and IP bandwidth
Despite external and corporate pressure to accelerate the process, CCP Chairman Dr. Kabir Sidhu emphasized transparency and due process, ensuring compliance with all legal standards.
Legal Challenges During the Review
In February 2025, a legal challenge was raised, arguing that the CCP had become “functus officio” and no longer had the authority to continue the case. The Commission dismissed this claim, stating that it was working within its legal timeline and acting in the public interest.
This highlighted both the high stakes of the acquisition and the CCP’s determination to uphold fairness and legality throughout the process.
Global Comparisons Highlight Pakistan’s Regulatory Progress
The PTCL-Telenor review aligns with international best practices for large telecom mergers:
| Merger | Review Duration |
|---|---|
| Vodafone & Three UK | 23 months |
| Sprint & T-Mobile (USA) | 22 months |
| PTCL & Telenor Pakistan | 18 months |
The comparison shows that Pakistan’s 18-month review was thorough yet efficient, underscoring the maturity of the CCP’s regulatory framework.
Conclusion
The CCP’s Phase-II approval of the PTCL acquisition of Telenor Pakistan marks a turning point for Pakistan’s telecom sector. While finalization is still pending additional approvals, this merger promises improved services, greater digital innovation, and stronger competition in the market.
As PTCL moves closer to completing the acquisition, millions of telecom users in Pakistan can look forward to enhanced connectivity and a future aligned with the vision of a Digital Pakistan.
