Telecom sector issues warning over PTCL’s potential acquisition of Telenor

Pakistan’s telecom operators, including Wateen and Jazz, have raised concerns over the potential anti-competitive implications of Pakistan Telecommunication Company Limited’s (PTCL) acquisition of Telenor Pakistan. 

During a Competition Commission of Pakistan (CCP) hearing, industry stakeholders argued that the deal could increase PTCL’s market dominance, creating an uneven playing field, particularly in spectrum allocation.

Wateen voiced its opposition to the acquisition, expressing worries over market concentration and its impact on sector competition. Jazz also called for specific regulatory safeguards, recommending that CCP introduce conditions on interconnection and tariff structures to prevent a repeat of issues seen in the Warid merger.

Highlighting PTCL’s existing strength in upstream services like spectrum and IP bandwidth, Jazz’s legal counsel argued that additional assets could make PTCL’s position unassailable, potentially marginalizing private competitors. 

The CCP Chair, Dr. Kabir Ahmed Sidhu, questioned PTCL on its due diligence process, emphasizing the need for clarity on how the transaction would affect the competitive landscape.

PTCL’s counsel, Rahat Kaunain Hassan, responded by explaining that the acquisition was limited to Telenor’s telecom operations, with future plans for further integration to be shared as they evolve. PTCL presented data suggesting that post-acquisition, market balance would be maintained, as Jazz would still hold the largest subscriber base.

Industry officials cautioned that unchecked consolidation may harm innovation and consumer choice, with SOE-dominant regulatory environments already driving away foreign investment. 

Experts stressed that any approval of PTCL’s acquisition of Telenor must include safeguards to prevent monopolistic practices and ensure a competitive telecom landscape.

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