The Pakistan Telecommunication Authority (PTA) has imposed several regulatory conditions on the proposed merger of Ufone and Telenor Pakistan to oversee the transfer of licenses and ensure consumer protection during the consolidation of the two operators into a single entity, PTML/MergeCo.
According to the regulator’s order, the conditions cover license transfers, financial transparency, tariff controls, service quality standards, and spectrum management to ensure the merger complies with regulatory requirements and maintains competitive balance in the telecom sector.
As part of the framework, PTML/MergeCo will be required to maintain separate financial accounts for its various business units and submit detailed annual financial statements to the PTA. The measure is intended to ensure transparency and prevent practices that could distort market competition or undermine consumer interests.
The PTA has also placed restrictions on pricing practices, directing that the merged entity will not be allowed to introduce predatory pricing or impose tariffs that could burden consumers. Any changes to tariffs will require prior approval from the regulator. In addition, the company must submit a contract of service in accordance with Telecom Consumers Protection Regulations to ensure continued safeguards for users during the transition period.
The authority has further made compliance with quality of service (QoS) benchmarks mandatory. PTML/MergeCo will be required to meet or exceed PTA standards for network speeds, data throughput, and downtime under 4G and LTE services. The regulator has reserved the right to intervene if service quality deteriorates following the merger.
The order also directs the merged entity to ensure effective management and utilization of radio spectrum and access services. PTA said any new spectrum usage must comply with applicable regulations, including those governing microwave spectrum, without disrupting existing services or affecting the broader telecom ecosystem.
The regulator said the conditions are aimed at protecting consumers and ensuring fair competition in the telecom sector following the merger.
