Jazz raises concerns in CCP hearing on PTCL-Telenor merger

The Competition Commission of Pakistan moves forward with Phase II Merger Review of the proposed acquisition by PTCL of 100% shareholding in Telenor Pakistan (Private) Limited and Orion Towers Private Limited. A CCP release said the hearing by CCP Chairman Dr. Kabir Ahmed Sidhu, along with members Salman Amin and Abdul Rashid Sheikh, discussed the prospects of a merger affecting competition.

Khalid Ibrahim, counsel for Jazz Telecom, opined that the combined entity could help PTCL gain a monopolistic position in the market. He argued that the CCP should impose both pre-merger and post-merger conditions to ensure that competition prevails. Such conditions can be about the obligation of the merged entity to permit roaming on its network on fair and commercially negotiated terms and PTCL’s obligation to provide non-discriminatory access to its infrastructure on a wholesale basis. In addition, Ibrahim also proposed that terms with respect to active infrastructure, fibre and spectrum sharing must be fair and transparent.

Wateen Telecom Limited, on its behalf, through Mian Sami-ud-Din merely expressed the hope that the Commission may take into consideration the impact of merger on certain sub-markets dealing in IRU, tower co-location, and extension of fibre network. According to him, every aspect of competition in the market has to be thoroughly considered before allowing merger to take place.

Legal contest PTCL was represented by Senior Counsel Rahat Kaunain Hassan and Mustafa Munir Ahmed from Legal Oracles, and the majors sought to refute that the deal would bring about efficiencies and economies of scale and help propel the country towards the digital transformation process as it would improve the IT ecosystem.

The CCP bench interrogated PTCL, Wateen Telecom, as well as representatives from the Pakistan Telecommunication Authority (PTA) to seek more clarification on the impact that the merger will have and to examine related statutory legislation.