The Pakistani telecom industry has entered a new era. In a landmark move, Pakistan Telecommunication Company Limited (PTCL) a subsidiary of e& (formerly Etisalat Group) has officially acquired 100% of Telenor Pakistan (Pvt) Ltd and Orion Towers (Pvt) Ltd from Telenor Group. The acquisition, valued at approximately PKR 108 billion (USD 380–400 million), marks one of the largest transactions in the country’s telecom history.
The Background: A Strategic Buyout
The acquisition was announced in December 2023, when PTCL signed a Share Purchase Agreement (SPA) with Telenor Group to take over its Pakistan operations on a cash-free, debt-free basis.
This move reflects PTCL’s long-term strategy to strengthen its position in Pakistan’s telecom market and expand its footprint in mobile services alongside its existing brand, Ufone. With this acquisition, PTCL consolidates its role as a major industry player now directly competing with market leaders like Jazz and Zong.
The deal’s financing was secured through a USD 400 million facility led by the International Finance Corporation (IFC) and a consortium of lenders. The loan comes with a seven-year tenor and a one-year grace period, providing PTCL with the financial stability to complete the buyout and manage integration.
Regulatory Approvals and Conditions
Given the transaction’s scale and its impact on market competition, the Competition Commission of Pakistan (CCP) conducted a detailed Phase II review before granting approval on October 1, 2025.
The CCP’s approval came with conditions to ensure the deal does not lead to market concentration or anti-competitive behavior. Among these conditions are:
- Independent management structures: PTCL and the newly acquired entities must maintain separate boards and management teams.
- Fair market access: PTCL is required to provide equal and non-discriminatory access to infrastructure and interconnection services for all operators.
- Transparency and compliance: A third-party auditor will monitor the merged operations for at least five years, ensuring accountability.
- No predatory pricing: PTCL must avoid unfair market practices, such as undercutting competitors or cross-subsidizing services.
These safeguards aim to maintain healthy competition in the sector, protect consumers, and ensure transparency in operations.
What the Acquisition Means for the Market
With this acquisition, PTCL now controls two major telecom operators Ufone and Telenor Pakistan giving it a combined subscriber base that significantly boosts its position in the market.
This move could lead to several potential outcomes:
- Improved network coverage and quality: The integration of Ufone and Telenor’s infrastructure can enhance service delivery and accelerate the rollout of 4G and 5G technologies.
- Operational efficiency: The combined scale allows PTCL to optimize costs, share resources, and strengthen its service capabilities.
- Digital growth: The merger aligns with Pakistan’s Digital Transformation agenda, promoting wider connectivity and technological inclusion.
However, the challenge will lie in integration merging two large operational networks, teams, and systems without service disruption.
Challenges and Industry Concerns
While the acquisition strengthens PTCL’s portfolio, it also raises competitive concerns within the industry. Competitors like Jazz and Zong have expressed apprehensions about market dominance and potential pricing power.
Additionally, the integration phase from aligning network infrastructure to harmonizing customer experience will require careful planning. Regulatory compliance, cultural alignment, and customer retention will remain crucial success factors in the post-acquisition phase.
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In the coming months, the focus will shift to:
- Network integration and rebranding strategies for Telenor Pakistan.
- Expansion of fiber broadband and 5G infrastructure under the PTCL Group umbrella.
- Ensuring compliance with CCP’s regulatory framework and maintaining transparency through third-party oversight.
If executed effectively, the acquisition could transform PTCL into a telecom powerhouse, capable of leading Pakistan’s transition into a fully connected digital economy.
Conclusion
The acquisition of Telenor Pakistan by PTCL is not just a business transaction it’s a defining moment for Pakistan’s telecom industry. It reflects growing consolidation, increasing investor confidence, and the pursuit of scale in a rapidly evolving digital market.
As the integration unfolds, all eyes will be on how PTCL delivers on its promise: to combine purpose with performance, ensuring innovation, connectivity, and inclusivity for millions of Pakistanis.
FAQ
PTCL, a subsidiary of e& (Etisalat), has acquired 100% of Telenor Pakistan and Orion Towers for PKR 108 billion on a cash-free, debt-free basis.
This is a complete acquisition, not a merger. PTCL is the buyer, and Telenor Pakistan is the acquired company.
The CCP approved the acquisition with conditions ensuring fair competition, independent management, non-discriminatory access to infrastructure, and five years of third-party monitoring.
Consumers could benefit from improved network coverage, faster data speeds, and expanded digital services — provided regulatory safeguards are maintained.
PTCL will begin integrating Telenor’s operations with Ufone, focusing on 4G/5G rollout, network expansion, and enhanced customer experience.
