CCP Moves Telenor-PTCL Merger Closer to Completion [Updated]
By
May 8, 2024
The Competition Commission of Pakistan (CCP) has moved the application for Telenor Pakistan’s merger with PTCL to the next step. This means they’ve given some initial approvals necessary for the merger to continue.
According to ProPakistani, the proposed merger between Telenor and PTCL has passed the first check by the CCP and is now in the final phase.
Usually, if the CCP wants to reject a merger, they do it in the first phase. So, moving to the second phase suggests they might approve it. In the first phase, they look at how the merger might affect the market and consumers. Moving past this phase means the CCP thinks the merger probably won’t harm competition much.
This process is similar to what happened with the Warid-Mobilink merger, which also moved to the second phase after the first approval.
The CCP had some concerns during the first approval of the Warid-Jazz merger, similar to what they’re noting in the Telenor-PTCL merger. But these concerns are why they’re taking more time to think about it in the second phase.
PTCL applied to merge with Telenor earlier this year.
We expect to hear the result of the CCP’s decision within the next two months. Then, the merger application will go to the Pakistan Telecommunication Authority (PTA) for more approvals.
The whole merger process could take 18 to 24 months after the PTA approves it.
Update:
PTCL announced that the CCP has finished the first phase of reviewing PTCL’s acquisition of Telenor Pakistan. This move, combining telecom services, is significant for improving services for customers. Because of the merger’s size and its impact on competition, the CCP will take a closer look in the second phase, as they usually do for telecom mergers. PTCL is confident in the process and is working with the CCP to provide all the information they need.
For customers, this merger means better network coverage, especially in rural areas. Broadband and 4G services will improve, and there will be more options for products. The collaboration will also lead to more innovation and better technology for customers.
