The Pakistan Competition Commission (CCP) approved the acquisition of Pakistan Telecommunications Limited (PTCL) of the Telenor Pakistan mobile airline and the actions of Orion Towers, according to a press release issued on Wednesday.
According to the telecommunications company website, one of its subsidiaries is the UFONE mobile operator. As part of the agreement, Telenor and Ufone will merge.
According to the press release, the merger was announced today at a press conference at the CCP central office. The president of CCP, Dr. Kabir Ahmed Sidhu, CCP registrar and head of Ambreen Abbasi Legal and members Salman Amin and Shahzad Hussain shared the most prominent aspects of the agreement.
“They explained that [the] CCP made an exhaustive review of the merger transaction, “said the press release.” The review examined the structure of the market, concentration levels, efficiencies and possible competence risks. “
Dr. Sidhu emphasized that the commission’s decision “ensures a leveling playing field for all telecommunications operators and safeguard the interests of the consumer.”
“The fusion aims to improve the quality of the service, expand product offers and accelerate technological innovation, including 5G deployment,” he said.
“The CCP [has] He studied several international precedents, including orders from the United States, the United Kingdom and the European Union, which involve similar transactions before granting approval. ”
According to the press release, Abbasi explained that the evaluation possibly considered decreasing competition in relevant submarkets, market shares and efficiency claims. She stressed that the fusion was approved conditionally, with safeguards designed to avoid anti -competitive behavior.
Some of the keys listed in the press release were:
- PTCL and the merged entity will maintain separate joints and independent management structures.
- Executive directors and senior management must meet the strict competence and integrity requirements, with the telecommunications company based in the EAU, Etisalat, ensuring professional leadership.
- An independent third will monitor compliance, audit transactions and submit quarterly reports to CCP for five years.
- Transactions of related parties and cross subsidization will be prohibited unless they are carried out competitively and with the arm.
- Non -discriminatory access will be applied to capacity and infrastructure for all operators. PTCL and Mergeco will present all their existing and future reference interconnection offers (Pakistan Telecommunications Authority (PTA) for approval. PTCL will offer interconnection to all operators according to Río as approved by the PTA.
- PTCL will seek the approval of the PTA for its Wholesale Price Structure in relation to the IP, LDI bandwidth, Line Infrastructure Services and IP Telecommunications Line, as well as the associated companies, including Mergeco. PTCL will not establish predatory retail prices.
- Mandatory compliance will be guaranteed with service quality standards, innovation policies and PTA rates approvals.
- PTCL and Telenor must demonstrate that claimed efficiencies are transmitted to consumers through better services, prices and infrastructure investments.
- The PCCH reserves the right to direct the disinvestment of assets or commercial segments in case of future violations.
In the press release, Amin was summoned by saying that these conditions are specifically aimed at preventing favoritism, predatory prices and barriers for the entrance to the market, while guaranteeing continuous regulatory supervision by the PCCH and the PTA.
Last week, the PCCH raised concerns about the non -cooperation of PTCL and the delay in providing critical information to evaluate the fusion, with the guard dog citing possible risks of competition and warned about the cross -subsidization between PTCL and UFONE, which operate under joint management.
