CORPORATE WINDOW: A merger to shape the telco sector

The Competition Commission of Pakistan (CCP) is currently finalising the PTCL and Telenor merger, which is possibly one of the most complicated cases of the country’s corporate sector history; the outcome will have far-reaching implications for Pakistan’s telecommunications landscape. CCP’s main task would be to protect the rights of all concerned, including the merging parties. The management of PTCL and Telenor have the privilege to merge their entities, but a ‘delicate balancing act’ is required to safeguard the interests of other players in the sector, which will eventually guarantee the protection of the rights of telecom and internet consumers. The CCP was established under the Competition Ordinance, 2007 — the upgraded and more powerful reincarnation of the Monopoly Control Authority (MCA). Another key merger allowed by the Commission was the acquisition of Warid Telecom by Mobilink in 2016, resulting in the establishment of the largest teleco in the country — Jazz.