The completion of the sale of Telenor Pakistan to Pakistan Telecommunications Company Ltd (PTCL) is now anticipated to extend into early 2025, according to Telenor Group’s third-quarter report. The sale, initially announced in December 2023, remains pending necessary approvals, with Telenor Pakistan continuing as part of Telenor’s business area in Asia until the transaction is finalized.
Despite the delay, Telenor Group expressed confidence in the eventual closing of the deal.
It is worth mentioning that Telenor Pakistan reported a 6.7 percent increase in revenue on a year-on-year basis for the third quarter of 2024, reaching Rs. 30.11 billion compared to Rs. 28.2 billion in the same period last year. This growth comes as the company navigates challenging macroeconomic conditions and a divestment process.
In its Q3 2024 report, Telenor highlighted continued growth in service revenues in Asia, with Telenor Pakistan achieving an 8 percent organic growth. This was primarily driven by a successful monetization strategy, which offset a 3 percent decrease in the subscription base.
Last week, the Competition Commission of Pakistan (CCP) concluded the Phase II Merger Review of PTCL’s proposed acquisition of 100 percent shareholding in Telenor Pakistan (Private) Limited and Orion Towers (Private) Limited.
In an in-depth analysis, the CCP has thus far held five extensive hearings, beginning on September 30, 2024, with subsequent hearings on October 2nd, 3rd, 22nd, and 24th, 2024. The review is being conducted by a Bench, led by Chairman Dr Kabir Ahmed Sidhu, alongside Members Salman Amin and Abdul Rashid Sheikh.
During the most recent hearing, Rahat Kaunain Hassan, Senior Counsel for PTCL, accompanied by Mariam Saleem Malik, Counsel for PTCL, presented responses to the concerns raised by Wateen, Jazz, and CM Pak (Zong) in earlier hearings. The CCP Bench facilitated discussions, offering all stakeholders, including PTCL, Wateen, Jazz, and Telenor, the opportunity to provide their respective comments, CCP said in a press release.
PTCL emphasized the merger’s competitive benefits, particularly highlighting the expected reduction in the market share gap between the two leading players. PTCL also addressed potential risks of input and customer foreclosure, outlining the evaluation principles, while highlighting the merger’s efficiencies, including cost savings, increased network capacity, accelerated technological advancements, and the roll-out of 5G services.
PTCL assured the Bench that the MergeCo would fully comply with the Spectrum Sharing Framework, once issued by the Pakistan Telecommunication Authority (PTA), thereby adhering to all regulatory requirements.
Jazz and Wateen, in turn, reiterated their concerns over critical industry matters, particularly tariff regulations, infrastructure sharing, national roaming, and the operations of Cellular Mobile Operators (CMOs).
PTCL also believes that the new entity would be more financially robust, reducing risks for investors and highlighting Pakistan’s path toward economic reform and modernization, making it an appealing destination for foreign direct investment (FDI).
