CCP authorizes PTCL’s $400 million purchase of Telenor.

On Wednesday, Pakistan Telecommunication Company Limited (PTCL) praised the Competition Commission of Pakistan (CCP) for approving the purchase of Telenor Pakistan, describing the agreement as a significant milestone for the nation’s telecom industry.

The $400 million deal, which will combine Telenor Pakistan and PTCL’s mobile division Ufone to form the nation’s second-largest mobile operator, has finally been approved after a drawn-out regulatory process.

Before approving the merger with restrictions, the CCP conducted a Phase II review, raising issues with funding sources, market dominance, and transparency.

The PTCL stated in a statement, “We greatly value the Commission’s diligence in ensuring the long-term viability and future prospects of Pakistan’s telecom industry.” “The telecom sector in Pakistan will benefit greatly from this intra-sector consolidation, which will leverage the strengths of both Telenor and PTML (Ufone).”

The consolidation occurs as regulatory restrictions and growing costs affect Pakistan’s telecom sector.

According to PTCL, the acquisition will boost network coverage and quality, improve customer experience, and allow the industry as a whole to become more efficient, develop resilient infrastructure, and create a more competitive environment.

Following months of hearings, the PTCL Policy Board had already approved the CCP’s terms. The regulator had used its Substantial Lessening of Competition (SLC) Test in a number of market categories, including long-distance, fixed line, and mobile markets.

The agreement is anticipated to change the telecom environment in Pakistan, which now has four major carriers but is still struggling with narrow profit margins, expensive spectrum, and significant capital expenditure requirements.