Telenor, one of the world’s largest telecom companies, has expressed concern that the regulatory approval process for the sale of Telenor Pakistan to Pakistan Telecommunication Company Ltd (PTCL) continues to face delays 21 months after the transaction was announced in December 2023.
“This is a departure from the clear and consistent trend of telecom consolidation approvals across Asia,” Telenor said in a statement on Friday.
The telecom noted that from the large mergers in Malaysia (Celcom-Digi), Indonesia (Indosat Ooredoo Hutchison and XL Axiata-Smartfren), Thailand (dtac-True) and Sri Lanka (Dialog-Airtel), regulators across Asia have acted decisively to enable industry consolidation with clear remedies.
“These moves reflect a shared understanding across the region that consolidation is essential for capital-intensive infrastructure investments to enable sustainable competition in the telecommunications sector,” Telenor said.
Telenor’s acquisition by PTCL: CCP seeks further clarity on key issues
The company highlighted that in Pakistan, Jazz, with 38% mobile subscriber market share and an estimated 44% revenue market share, was created by the Mobilink-Warid merger in 2016. It said that the transaction was approved in three months.
“The proposed sale of Telenor Pakistan to PTCL would create a number two mobile player with a 36% mobile subscriber market share and an estimated 32% revenue share when completed. This is well within the range of other approved transactions across Asia, many of which involve higher market concentrations,” said Arnstein Sletmoe, Head of M&A, Telenor Group.
Citing an Asian Development Bank (ADB) report warning that Pakistan is lagging in digital transformation, Telenor said the delay risks worsening an already challenging environment for the telecom sector.
“The sale of Telenor Pakistan to PTCL is a critical step towards reviving the sector. The ongoing delay in approving this much-needed consolidation move further risks eroding investor confidence,” said Jon Omund Revhaug, Head of Telenor Asia.
He added that telcos with a mobile revenue market share close to 20%, such as Telenor Pakistan, cannot sustain over time.
Telenor Group awaits approvals for PTCL acquisition of Telenor Pakistan, Orion Towers
“The current industry structure, therefore, does not support meaningful investment in the sector. Telecom investments have dropped by more than 60%in less than four years, according to the Pakistan Economic Survey FY 2025, highlighting that a restructuring of the sector is much needed to ensure future investments,” said Jon.
