ISLAMABAD: Arguing before the Competition Commission of Pakistan (CCP) on Tuesday against the proposed acquisition of Telenor Pakistan (Pvt) Ltd and Orion Towers (Pvt) Ltd by PTCL, Zong claimed the move would hit market competition.

Zong representatives claimed that Pakistan Telecommunication Company Ltd’s market share would rise to 36.50pc if the commission approves this acquisition.

The merger, in its second phase of the review, was of concern to the representatives of Zong as they maintained that the unified company will become a very large entity. They argued that it would have the controlling capacity over the upstream as well as the wholesale and retail business in the telecom sector.

The bench comprised CCP Chairman Dr Kabir Ahmed Sidhu, and members Salman Amin and Abdul Rashid Sheikh.

Pleading the case, Zong representatives provided an in-depth review focusing on potential market power concentration, competitive dynamics and broader impact on the telecommunications sector after the takeover.

Currently, Jazz leads as the top telecom operator in the country with almost 37pc market share, and after the merger of Telenor with the Ufone, the company’s market share will be around 36.50pc the of total.

However, Zong will be left with only 25.6pc of the total telecom market share, which will create an uncompetitive competition environment.

Pakistan Telecommunication Auth­ority’s Director-General (Wireless — Licensing) Amer Shahzad was also present at the hearing.

The key concern raised during the hearing was spectrum allocation as it was a scarce resource and a critical determinant of market power for the mobile operators with each frequency band offering distinct efficiency and coverage attributes.

The government officials informed the bench that post-transaction, the joint Ufone-Telenor company would be in control of 34.4pc of the total allocated spectrum in the retail mobile telecommunications market.

Published in Dawn, October 23th, 2024

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Going dry
Updated 07 Apr, 2025

Going dry

Authorities should refrain from undertaking any water scheme that infringes on rights of any federating unit to avoid more controversies.
Afghan return
07 Apr, 2025

Afghan return

AS expected, the government of Pakistan is moving ahead with its plan to forcibly repatriate Afghan Citizenship Card...
Hurting women
07 Apr, 2025

Hurting women

MONTH after month, the figures of crimes against women in the country indicate that our society is close to...
Not cricket
Updated 06 Apr, 2025

Not cricket

It is high time that the PCB sets things right; even if it demands a complete overhaul of the system.
Balochistan deadlock
Updated 06 Apr, 2025

Balochistan deadlock

Akhtar Mengal’s demands to release women activists should seriously be considered.
Escalating brutality
Updated 06 Apr, 2025

Escalating brutality

The world’s patience is running out. Israel must be held accountable under international law for war crimes.