PTA Sets Conditions for Ufone–Telenor Merger to Protect Consumers and Competition
By Tanveer Ahmed :
The Pakistan Telecommunication Authority (PTA) has imposed a series of regulatory conditions on the proposed merger between Ufone and Telenor to ensure compliance with telecom regulations and safeguard consumer interests.
In an official order, the regulator approved the consolidation of applications related to the transfer of PTA licences and the amalgamation of the two telecom operators into a single entity, PTML/MergeCo. The decision sets out strict requirements aimed at maintaining transparency, service quality and fair competition in the telecom sector.
Among the key conditions is the requirement for financial separation within the merged company. PTML/MergeCo will be required to maintain separate accounts for its different business units and submit detailed annual financial statements to the PTA. The regulator said this measure would enhance transparency and prevent financial practices that could distort market competition or undermine consumer protection.
The PTA has also emphasised consumer safeguards as part of the merger framework. The merged entity will not be allowed to engage in predatory pricing or introduce tariffs that place an unfair burden on customers. Any tariff adjustments must first receive approval from the regulator. In addition, the company has been instructed to submit a formal contract of service in accordance with the Telecom Consumers Protection Regulations to ensure that customer rights remain protected during and after the transition.
Service quality has been made another central requirement. PTML/MergeCo must meet or exceed the existing performance benchmarks set by the PTA for 4G and LTE networks, including standards related to data speeds, network uptime and service reliability. The authority has warned that it reserves the right to intervene if service standards decline following the merger.
The regulator has further directed the company to ensure efficient management and utilisation of radio spectrum and access services. The merged entity must maintain uninterrupted telecom services and ensure that any future spectrum usage complies with relevant regulations, including those governing microwave spectrum, without disrupting the broader telecom ecosystem.
According to the PTA, the conditions are intended to preserve a competitive balance in the telecom market while preventing potential monopolistic behaviour after the merger. The authority said the regulatory framework would help ensure that consumers continue to receive reliable and fairly priced telecom services.
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