Zong Has Opposed The Merger Of Telenor Into PTCL

In a hearing by the Competition Commission of Pakistan (CCP) against the proposed acquisition of Telenor Pakistan and Orient Towers Private Limited by the Pakistan Telecommunication Authority (PTCL), Zong claimed that this merger would affect competition in the market.

According to the report, Zong representatives said PTCL’s market share would increase to 36.50 percent if the commission approved the acquisition.

The merger of Telenor and Orient Towers is a concern for Zong, as they believe this company will become a major entity. Zong stated that as a result, the company would gain the ability to control both upstream as well as wholesale and retail business in the telecom sector.

The bench included Chairman CCP Dr. Kabir Ahmad Sidhu, members Salman Amin and Abdul Rasheed Sheikh.

Jazz is currently the leading telecom operator in the country with a market share of around 37%, while after Telenor’s merger with Ufone, the company’s market share will increase to around 36.50%.

However, Zong will only have 25.6 percent of the telecom market share, resulting in an uncompetitive environment.

Pakistan Telecommunication Authority Director General (Wireless Licensing) Aamir Shahzad was also present in the hearing.

Concerns were raised during the hearing over spectrum allocation, as it is a successful resource and key factor in market power for mobile operators, with each frequency band offering different performance and coverage characteristics.

Government officials told the court that after the transaction, the joint venture of Ufone and Telenor will have a 34.4 percent share of the retail mobile telecommunications market.