The Pakistani government has stepped in to address the stalled merger between Telenor Pakistan and Pakistan Telecommunication Company Limited (PTCL), a move that is crucial for the country’s upcoming 5G spectrum auction. This merger, which is backed by Etisalat, the UAE-based telecom giant, holds significant implications for Pakistan’s digital future, especially the launch of 5G services.
Prime Minister Shehbaz Sharif has assigned Deputy Prime Minister Ishaq Dar to resolve the merger issue promptly. The decision follows a meeting between the Prime Minister and a senior delegation from Etisalat. The delegation formally requested the government’s intervention to expedite the merger process. In response, Prime Minister Sharif assured Etisalat of the government’s support in ensuring a swift resolution.
The merger between Telenor Pakistan and PTCL is considered a strategic move to consolidate resources ahead of Pakistan’s first 5G spectrum auction. However, the process has faced delays due to a lack of approval from the Competition Commission of Pakistan (CCP). Without this approval, the merger remains incomplete, creating uncertainty about the number of telecom operators that can participate in the 5G auction.
Sources say that Deputy Prime Minister Ishaq Dar will lead discussions with all relevant stakeholders to overcome the bureaucratic and regulatory challenges blocking the merger. The merger’s approval is vital, as it will determine the structure of the telecom market and directly impact the 5G auction.
The 5G auction, which was initially scheduled for June 2025, is now delayed by at least four months. The Pakistan Telecommunication Authority (PTA) had prepared a comprehensive report for the auction, considering scenarios with either three or four telecom operators, depending on the merger’s outcome. However, the advisory committee for the auction has yet to meet due to geopolitical tensions in the region.
The resolution of the Telenor-PTCL merger issue is crucial for the timely launch of 5G services in Pakistan. The government’s intervention aims to address the regulatory hurdles and ensure the country’s 5G rollout progresses smoothly, benefiting consumers and the economy alike.
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