Govt urged to act on Telenor-Ufone merger

The Auction Advisory Committee has decided to seek federal government intervention to finalize the Telenor-Ufone acquisition deal, as delays are impacting the upcoming 5G spectrum auction.

The Pakistan Telecommunication Authority (PTA) briefed officials on preparations and challenges related to the auction.

An international consultant was engaged in November 2024 to assess the telecom market and consult key stakeholders. The assessment has been completed, and final decisions on pricing, auction design, and network rollout are expected soon.

PTA highlighted key obstacles, including delays in the Telenor Pakistan acquisition by Ufone (PTCL Group). The Competition Commission of Pakistan (CCP) has not yet ruled on the merger, creating uncertainty about whether the market will have three or four telecom operators. Additionally, ongoing litigation over key spectrum bands, including 2600 MHz and 1800 MHz, could further delay the process.

The CCP has completed its Phase I review of the Telenor-Ufone merger, warning of potential negative impacts on competition. The Phase II review is ongoing, with hearings and consultations to assess market dominance concerns.

PTCL secured a $400 million loan from an IFC-led consortium in June 2024 for the acquisition of Telenor Pakistan and Orion Towers. However, regulatory delays continue to stall the deal, affecting the overall telecom market and 5G launch plans.

The meeting was attended by senior government officials, including the Minister for Industries and Production, Minister of State for IT, Chairman PTA, and secretaries from the IT and Law ministries.