PTCL-Telenor merger expected soon to pave way for Pakistan's 5G launch

PTCL-Telenor merger is viewed as essential step towards deployment of 5G technology in Pakistan
An undated image. — Depositphotos
An undated image. — Depositphotos

As the launch of 5G in Pakistan has been in limbo for months, the soon-expected merger between Pakistan Telecommunication Company Limited (PTCL) and Telenor Pakistan is set to pave the way for 5G rollout.

The development came to light as the Competition Commission of Pakistan (CCP) is closing in on the completion of its review of the merger.

After a thorough assessment, it will issue a comprehensive order within the next two weeks, Business Recorder quoted the CCP chairman, Kabir Sidhu, as saying.

This merger is viewed as an essential step towards the deployment of 5G technology in Pakistan, as the availability of resources needed to set in place the infrastructure to support the advanced network depends on the merger.

Telenor Group, the parent company of Telenor Pakistan, has expressed concerns over the delays in the regulatory approval process, which has been ongoing for 21 months since the announcement of the transaction in December 2023. Addressing the telecom giant's concerns, the CCP has assured that the order will be issued soon.

Industry experts believe that the merger of PTCL and Telenor Pakistan will create a formidable player in the Pakistani telecom market, with a 36% mobile subscriber market share and an estimated 32% revenue share.

The merger appears to be following a trend observed across Asia, where similar transactions took place within a short timeframe.

As Pakistan braces for the 5G era, the impending completion of the PTCL-Telenor merger is seen as a catalyst for Pakistan's telecom sector, providing the combined body with the necessary resources to drive the deployment of the latest mobile technology across the country.