The Auction Advisory Committee has decided to seek federal government intervention to expedite the Telenor-Ufone acquisition deal, as delays in the process are impacting preparations for Pakistan’s upcoming 5G spectrum auction.
The decision was made during a recent meeting chaired by Federal Finance Minister Muhammad Aurangzeb at the Finance Division. The Pakistan Telecommunication Authority (PTA) provided a comprehensive briefing on the country’s readiness for the 5G spectrum auction and the challenges hindering progress.
According to reports, PTA officials informed the committee that an international consultant was hired in November 2024 under Public Procurement Regulatory Authority (PPRA) rules to assess the telecom market and engage stakeholders. The consultant has completed the assessment, and the pricing structure, auction design, and network rollout plans are expected to be finalized soon. The 5G spectrum auction is scheduled for mid-2025.
However, PTA highlighted significant challenges, including delays in the acquisition of Telenor Pakistan by Ufone (PTCL Group). The unresolved case with the Competition Commission of Pakistan (CCP) has created uncertainty for both companies regarding their participation in the auction. This has prevented PTA from determining whether the telecom market will operate with three or four players, complicating the formulation of a spectrum cap.
PTA also pointed to legal disputes over key spectrum bands as another major hurdle. The 2600 MHz band, a prime band for 5G services, has been under litigation since 2007, while the 1800 MHz band is also tied up in legal challenges. These disputes pose risks to the timely rollout of 5G services in Pakistan.
The CCP has completed its Phase I review of the Telenor-Ufone merger, concluding that the deal could reduce competition in the telecom sector. The Phase II review has faced complications in assessing market dominance and industry concentration. Multiple hearings and consultations with stakeholders have been conducted to evaluate the potential impact of the acquisition.
In June 2024, Pakistan Telecommunication Company Limited (PTCL) secured $400 million in financing from an International Finance Corporation (IFC)-led consortium for the acquisition of Telenor Pakistan and Orion Towers (Pvt.) Limited. Despite securing financial backing, regulatory delays continue to hinder the finalization of the deal, affecting the telecom market and 5G rollout plans.
The meeting was attended by Minister for Industries and Production Rana Tanveer Hussain, Minister of State for Information Technology and Telecommunication Shaza Fatima Khawaja, Chairman PTA, Secretary Ministry of Information Technology, Secretary Ministry of Law, and other senior officials.
