
In what seems to be another hindrance delaying 5G launch in Pakistan, with spectrum auction expected in December, the merger between Telenor Pakistan and Pakistan Telecommunication Company Ltd (PTCL) is confronting further delays due to concerns raised by the Competition Commission of Pakistan (CCP).
The CCP highlighted issues regarding PTCL’s business ethics, funding sources, and a lack of transparency in key documents.
Citing sources, Dawn reported that PTCL failed to submit essential documentation and has been asked to clarify its investment plans post-merger, especially in the wake of its ongoing financial losses.
The commission also inquired whether Etisalat, PTCL’s UAE-based parent company, has any plans to inject new funds to cover losses and finance future projects, including the upcoming 5G spectrum auction.
The renowned telecom service provider has also been asked by the CCP to commit to investment obligations underlined in its previous business plan and to disclose funding sources for proposed capital expenditures.
The CCP also expressed concern over PTCL and Ufone's significant losses and sought clarity on how profitability would be achieved after the merger.
Other areas wherein the CCP voiced its concerns include PTCL's transparency around international direct dialling (IDD) services and disparity in revenue reporting.
Per the commission, PTCL's responses were uncertain or incomplete, adding to its scepticism about the merger's credibility and the subsequent impact on market competition.