Our Terms & Conditions | Our Privacy Policy
Pakistan’s telecom sector is facing a major hurdle as the Telenor-Ufone merger remains stuck in regulatory delays, creating uncertainty for the industry. With the 5G spectrum auction approaching, the unresolved acquisition is making it difficult for regulators to finalize auction plans. Concerned about the setbacks, the Auction Advisory Committee has now urged the federal government to step in and expedite the approval process. If the deadlock isn’t resolved soon, Pakistan’s plans for next-generation connectivity could face significant delays.
5G Auction and Delays in the Telecom Sector
The Pakistan Telecommunication Authority (PTA) provided a comprehensive briefing on Pakistan’s preparations for the 5G spectrum auction and the challenges currently delaying the process. According to sources, PTA officials informed the committee that an international consultant was hired in November 2024 to assess the telecom market and engage with industry stakeholders. They appointed the consultant following Public Procurement Regulatory Authority (PPRA) rules, and the consultant has now completed the evaluation.
Based on the findings, the pricing structure, auction design, and network rollout plans are expected to be finalized soon, with the 5G spectrum auction planned for mid-2025.
However, the PTA pointed out several key hurdles that could impact the auction. One of the primary concerns is the pending Telenor Pakistan acquisition by Ufone (PTCL Group). The deal is still under review by the Competition Commission of Pakistan (CCP), leading to uncertainty in the telecom sector. Without clarity on whether the market will have three or four major players, the PTA is unable to set a spectrum cap or finalize auction details.
Regulatory and Legal Challenges
Another major challenge identified by PTA is the ongoing litigation on key spectrum bands, which could hinder the launch of 5G services. Legal disputes have tied up the 2600 MHz band, which is critical for 5G, since 2007, while ongoing litigation also affects the 1800 MHz band. These legal uncertainties create additional risks for telecom operators and could further delay the spectrum auction.
The Competition Commission of Pakistan (CCP) has already completed its Phase I review of the Telenor-Ufone merger and raised concerns that the deal could significantly reduce competition in the telecom sector. The Phase II review has faced challenges in determining the potential market impact. Regulators have conducted multiple hearings with industry stakeholders to assess the implications of the acquisition.
Financing Secured but Delays Persist
Despite these regulatory delays, Pakistan Telecommunication Company Limited (PTCL) secured financial backing in June 2024. PTCL signed a formal loan agreement with an International Finance Corporation (IFC)-led consortium, securing up to $400 million for the acquisition of Telenor Pakistan and Orion Towers (Pvt.) Limited. However, the acquisition remains stuck due to unresolved regulatory matters, delaying market consolidation and 5G expansion plans.
Government’s Role in Resolving the Issue
Key government officials, including Minister for Industries and Production Rana Tanveer Hussain, Minister of State for Information Technology and Telecommunication Shaza Fatima Khawaja, Chairman PTA, Secretary Ministry of Information Technology, Secretary Ministry of Law, and other senior officials attended the meeting. Given the critical nature of the delays, the Auction Advisory Committee has now decided to escalate the matter to the federal government in hopes of a swift resolution.
If the acquisition remains stalled, Pakistan’s 5G rollout could face further setbacks, impacting digital growth and the country’s competitive standing in global telecom markets. The government’s intervention will be crucial in addressing regulatory roadblocks and ensuring that the 5G auction proceeds as planned.
See Also: CCP Would Only Allow Conditional PTCL-Telenor Merger Amid Monopolistic Concerns
Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.
Aggregated From –
Comments are closed.