ISLAMABAD (Zubair Kasuri): With the intervention of the Special Investment Facilitation Council (SIFC), the Competition Commission of Pakistan (CCP) has started moving towards approving the merger of Telenor Pakistan Limited with Pakistan Telecommunication Company Limited (PTCL).
The letter written to the CCP by PTCL’s lawyer, Rahat Kausar Hasan, citing Section 11(11) of the Competition Act 2010, made a new settlement offer to PTCL.
According to sources, the proposal includes an investment of about $1 billion from UAE telecom company e&, formerly known as Etisalat, which also owns the majority of stakes in PTCL.
The sources said that the CCP has sought a timeline and details regarding the areas of investment and the investment to be made.
The aforementioned section of the Competition Act states, “If the Commission determines that the proposed merger will not significantly lessen competition under that particular review, it cannot prohibit the transaction.”
The law also allows the Commission to approve the transaction with conditions or subject to legally enforceable agreements imposed by the Commission.
Sources in the IT Ministry said that PTCL’s merger application was pending for almost a year, as the company had not provided the necessary documents in response to several queries.
A senior official said that the issue of the outstanding amount of Rs 800 million was pending. A settlement of $ 640 million was reached between the previous government and the PTCL management, but PTCL has not yet paid the agreed amount.
The option of a fresh investment of $1 billion has emerged after the intervention of SIFC, as the PTCL management had approached the council on the matter.
After buying Telenor, Ufone Pakistan will have more than 75 million mobile phone subscribers and will become the second largest company in Pakistan.
Telecom sources said that this process will increase competition in mobile phone services in Pakistan and provide better services to the public. It should be noted that the government is already taking steps regarding FIG’s mobile phone services.
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