CCP approves PTCL acquisition of Telenor Pakistan with conditions

(GNN Correspondent: Ikram Ullah Joyia)

Islamabad: The Competition Commission of Pakistan (CCP) has approved the acquisition of 100% shareholding of Telenor Pakistan (Pvt.) Ltd. and Orion Towers (Pvt.) Ltd. by Pakistan Telecommunication Company Limited (PTCL), subject to extensive conditions designed to preserve competition and ensure non-discriminatory access and secure the pass-through of efficiencies to consumers.

The CCP conducted a comprehensive review of the merger transaction, examining market structure, concentration levels, efficiencies, and potential competition risks. CCP Chairman Dr. Kabir Ahmed Sidhu emphasized that the Commission’s decision ensures a level playing field for all telecom operators and safeguards consumer interests.

Key Conditions Imposed

Separate Management & Governance: PTCL and the merged entity must maintain separate boards and independent management structures.

Leadership Standards: CEOs and senior management must meet strict competency and integrity requirements.

Independent Third-Party Reviewer (TPR): To monitor compliance, audit transactions, and submit quarterly reports to CCP for five years.

Related Party Transactions & Cross-Subsidization: Prohibited unless conducted competitively and at arm’s length.

Interconnection & Infrastructure Sharing: Non-discriminatory access to capacity and infrastructure for all operators.

Prohibition on Price Discrimination: PTCL shall seek PTA’s approval for its wholesale pricing structure.

Consumer Protection & Innovation: Mandatory compliance with service quality standards, innovation policies, and PTA tariff approvals.

Efficiencies Substantiation: PTCL and the merged entity must demonstrate that claimed efficiencies are passed on to consumers.

Divestiture Clause: CCP reserves the right to direct divestiture of assets or business segments in case of future violations.

CCP Member Mr. Salman Amin added that the conditions aim to prevent favoritism, predatory pricing, and barriers to market entry, while ensuring continued regulatory oversight by CCP and PTA.