ISLAMABAD: The planned merger of Telenor Pakistan with Pakistan Telecommunication Company Ltd (PTCL) has faced further delays as the Competition Commission of Pakistan (CCP) raised serious concerns over PTCL’s business ethics, funding sources, and lack of transparency in key documents.
According to sources, the CCP has flagged PTCL’s failure to submit the required documentation and demanded detailed clarification on its post-merger investment plans, particularly in light of the company’s ongoing financial losses.
The commission has also questioned whether Etisalat (e&), the UAE-based parent company of PTCL and Ufone, intends to inject fresh equity to cover existing losses and fund future capital expenditures, including participation in the upcoming 5G spectrum auction.
In its communication, the CCP has asked PTCL to commit to binding investment obligations outlined in its earlier-submitted business plan. The company has been directed to disclose the sources of funding for the proposed capital outlays. The commission noted that both PTCL and Ufone are incurring significant losses and questioned how profitability would be achieved post-merger. It also sought clarification on whether the merger would be financed through bank loans or equity injection.
CCP questions acquirer’s financial capability, business ethics, and investment plans
Additionally, the CCP raised concerns about PTCL’s business conduct, citing a lack of transparency in data related to international direct dialling (IDD) services. The Commission has asked for precise information on volumes and rates charged for different IDD destinations from 2022 to 2024, as well as detailed billing between PTCL and Ufone, and comparisons with other major telecom players such as Jazz, Zong, and Telenor.
In its review of PTCL’s financial reports, the CCP highlighted discrepancies in several revenue streams listed under “Other Core Products” and “Other Retail/Wholesale” categories. These entries show substantial revenues without corresponding data on service volumes or rates.
Furthermore, the CCP noted the absence of crucial details regarding party transactions, transfer pricing, and access agreements. It stated that PTCL’s responses lacked clarity and that several answers were generic or incomplete.
“PTCL has again not provided the exact information in these questions and has given generic statements instead of providing the exact data/information,” the CCP noted in its official correspondence to PTCL.
The commission’s growing scepticism about the merger stems from the absence of clear financial and operational strategies, raising questions about the viability of the deal and its impact on market competition.
Published in Dawn, September 2nd, 2025
