CCP Reviews PTCL-Telenor Merger in Phase II Hearings

In a significant development for the telecommunications sector in Pakistan, the Competition Commission of Pakistan (CCP) has initiated Phase II merger review hearings regarding the acquisition of Telenor Pakistan (Private) Limited by Pakistan Telecommunication Company Limited (PTCL). This acquisition involves PTCL acquiring 100% shareholding in Telenor Pakistan and Orion Towers Private Limited. The hearing marks a crucial step in assessing the implications of this merger on the market and consumers.

The first hearing was held in Islamabad and was presided over by CCP Chairman Dr. Kabir Ahmed Sidhu, alongside members Mr. Salman Amin and Mr. Abdul Rashid Sheikh. During the session, Senior Counsel Ms. Rahat Kaunain Hassan represented PTCL, highlighting the potential economic benefits and growth opportunities that the merger could bring to the country. She argued that the transaction could enhance service delivery and foster competition in the telecommunications market.

Key figures from PTCL, including Mr. Hatem Bamatraf, the President & Group CEO, and Mr. Robert Middlehurst, provided valuable insights into the strategic advantages of the merger. They emphasized that the acquisition would not only strengthen PTCL's market position but also contribute positively to the overall telecommunications landscape in Pakistan.

Moreover, the hearing included contributions from M/s Wateen Telecom Limited, represented by Mian Sami-ud-Din, who concluded his preliminary submissions. Other notable attendees included Mr. Khurram Ashfaque, CEO of Telenor Pakistan, Mr. Andreas Hogberg, CEO of Orion Towers, and various representatives from other telecom companies and regulatory bodies. This diverse participation underscores the importance of the merger and its potential impact on the industry.

The CCP's Phase II Merger Review, conducted under Section 11(6) of the Competition Act 2010, aims to scrutinize market share dynamics and assess any potential risks associated with market concentration. As the review progresses, the CCP encourages all stakeholders to provide their input, ensuring a comprehensive evaluation of the merger's implications.

The next hearing is scheduled for October 2, 2024, where Wateen will present its arguments regarding the merits of the merger, and other stakeholders will also have the opportunity to make their submissions. This ongoing process is vital for maintaining a competitive telecommunications environment in Pakistan, which ultimately benefits consumers through improved services and pricing.

The PTCL-Telenor merger represents a pivotal moment in Pakistan's telecommunications sector. As the hearings unfold, it is essential for all stakeholders to engage actively in the process. The outcome of this merger could reshape the market landscape, influencing not only the companies involved but also the millions of consumers who rely on their services. The future of telecommunications in Pakistan hangs in the balance, and the decisions made in the coming months will be crucial for its development.