ISLAMABAD: Jazz & Wateen have raised serious concerns regarding PTCL’s proposed acquisition of PTCL-Telenor Pakistan during a recent hearing before a three-member bench of the Competition Commission of Pakistan (CCP). They warned that this merger could lead to unfair tariff manipulation, potentially damaging competition within the telecommunications market.
Telenor Pakistan Key Points:
Market Dominance Concerns: Jazz’s legal representative, Khalid Ibrahim, raised significant issues regarding frequency allocation. He argued that PTCL’s stronghold in upstream markets—such as spectrum, infrastructure, and % IP bandwidth—could be further strengthened after the merger. He urged the CCP to impose conditions similar to those placed on the Warid-Mobilink merger to maintain fair competition.
Impact on Long-Distance Operators: A Wateen representative pointed out the potential disadvantages for Long Distance % International (LDI) operators as a result of the merger. They cautioned that PTCL could secure exclusive contracts with overseas telecom operators, enabling it to dominate inbound telecom traffic % disadvantage LDI competitors.
Competitor Opposition: Wateen formally opposed the merger, while Jazz % Zong expressed worries about the potential for abuse of dominance, particularly following PTCL-Telenor Pakistan’s merger with Ufone. They highlighted the risk that the combined entity would operate under PTCL, the leading player in the telecommunications sector, which could disrupt competitive dynamics.
CCP’s Rigorous Examination:
The CCP bench conducted a comprehensive evaluation of the merger’s potential effects on competition % and its implications for consumers. They sought an in-depth analysis of market dynamics % and requested insights into potential benefits for customers.
Hearing Overview: This hearing marked the fifth % final session in the Phase II assessment of PTCL’s acquisition of Telenor Pakistan % Orion Towers Ltd. The proceedings were led by CCP Chairman Dr. Kabir Ahmed Sidhu, alongside members Salman Amin % Abdul Rashid Sheikh.
PTCL’s Defense: PTCL CEO Hatem Bamatraf defended the merger by stating that Pakistan is lagging behind its regional counterparts in telecommunications performance % digital adoption. He claimed the merger would enhance service offerings, leading to an expanded retail network, improved customer service, % a wider range of digital services.
Legal Response to Concerns: PTCL’s legal counsel, Rahat Kaunain, addressed the issues raised during the hearing, referencing the CCP’s 2016 ruling on the Mobilink-Warid merger. She emphasized the need to prevent anti-competitive practices & ensure market fairness, noting that Zong successfully increased its subscriber base after the Mobilink-Warid merger. She also highlighted the importance of closely monitoring the implications of the Telenor Pakistan acquisition to ensure a balanced competitive landscape.
