PTA clears technical stage of Telenor-Ufone merger

The Pakistan Telecommunication Authority (PTA) has formally given technical clearance for the merger of Telenor Pakistan and Ufone, clearing a major hurdle in the consolidation process. The development is expected to be communicated to the Pakistan Stock Exchange on Tuesday, as Ufone operates as a key subsidiary of Pakistan Telecommunication Company Limited, which is a listed company.

According to Dawn, officials familiar with the process said PTCL does not require any additional board-level approval, as the necessary permissions for the acquisition and merger have already been secured. The next step will now move into the legal domain, with an amalgamation petition set to be filed before the Islamabad High Court.

Legal process likely to take several weeks

According to company officials, the court-led amalgamation stage is expected to take about four weeks. This process is required to ensure there are no unresolved disputes involving either side, including matters related to loans, taxation, consumers, employees or other telecom operators.

During this period, input is typically sought from institutions such as the State Bank of Pakistan, the Federal Board of Revenue and the legal teams of both PTCL and Telenor Pakistan.

The no-objection certificate issued by the PTA also authorises Ufone to begin practical integration with Telenor Pakistan. Technical teams from both sides are expected to start work on combining infrastructure, including spectrum alignment and the rationalisation of telecom towers.

Tower consolidation and franchise conditions

The combined network currently has around 26,000 towers, with many located close to one another. This gives the merged entity room to reduce duplication by shutting down overlapping sites. However, the regulator has placed conditions on towers that are being shared with rival operators such as Jazz and Zong.

The PTA has also directed that franchise holders must receive at least six months’ notice before any agreement is ended as part of the restructuring process.

Subscribers using Telenor SIMs will continue to receive service through the Ufone network after integration.

Combined subscriber base to challenge rivals

Pakistan currently has about 202 million mobile subscribers. Jazz remains the largest operator with 74.19 million users, followed by Zong with 53.90 million.

The merged Telenor-Ufone entity is expected to have a combined subscriber base of roughly 72.45 million, placing it in close competition with the market leader. However, industry estimates suggest that figure may shrink by around 10 per cent over time, largely because many users currently hold SIMs from both Telenor and Ufone and may shift some of their connections to competing networks after the merger.