The Ufone Telenor merger has officially redrawn Pakistan’s telecom landscape. For years, the market was divided among four operators, but with this merger, the number has been reduced to three, and the balance of power has shifted dramatically.
With Ufone and Telenor combined, their joint market share now stands at around 32.8%, a bit further behind Jazz, which leads with about 43%. Zong lags behind at 24.1%. Jazz, with the largest subscriber base, remains the market leader, but the gap has narrowed considerably. From a comfortable lead over Ufone and Telenor separately, it now faces a rival of nearly equal scale.
Implications for Customers
- For customers: The merger promises genuine competition. Jazz can no longer rest easy with its size advantage, as MergeCo now has the muscle to match it in network rollout, pricing power, and customer acquisition.
- For the industry: The consolidation signals stability. Four operators in a low-ARPU market like Pakistan were always too many. Three strong players are more sustainable and better positioned to invest in 4G expansion and 5G rollout.
- For regulators: Oversight becomes easier with three large players instead of a fragmented industry with struggling smaller operators.
Jazz will need to strengthen its edge in digital financial services through JazzCash, leverage its strong spectrum holdings, and expand its advanced 4G coverage to stay ahead of Ufone/Telenor. The company may also accelerate 5G trials to reinforce its technological leadership. Its biggest challenge will be retaining high-value customers who may be tempted by MergeCo’s renewed strength.
MergeCo’s combined spectrum, tower footprint, and customer base create efficiencies that Jazz has not had to contend with in years. MergeCo is expected to prioritize:
- Network integration to cut duplication and deliver better coverage
- Cost savings redirected into 4G densification and 5G readiness
- Brand repositioning, possibly phasing out one brand for a unified identity
- Leveraging PTCL’s fiber dominance to deliver faster backhaul and improved data speeds
This combination could make MergeCo the most “end-to-end” operator in Pakistan, with both mobile scale and fixed-line backbone under one group.
Zong’s New Reality
Zong enters the three-player market with a distinct profile experience of China Mobile. The trajectory highlights its ability to compete on the basis of network coverage, service quality, and customer acquisition strategies in competitive and challenging dynamics.
The Ufone–Telenor merger is expected to rebalance market shares, but it also opens opportunities for the industry as a whole. With three major operators, spectrum resources may be used more efficiently, and the sector could see greater investment in 4G and 5G networks. Jazz has the backing of Veon, MergeCo combines the strengths of PTCL and Etisalat, while Zong, as part of China Mobile continues its growth trajectory in new reshaped market. Zong will be a significant player, with ongoing focus on network modernization, digital services, and enterprise solutions.
Looking ahead, Zong’s role will be shaped by how effectively it sustains investment and adapts to evolving consumer needs. While the merger changes competitive dynamics, it does not diminish Zong’s position within Pakistan’s telecom sector or its potential to influence the industry’s future direction.
A Market Finally Balanced
Pakistan’s telecom sector has long been imbalanced, with one dominant operator, one hopeful challenger, and two weaker players. That imbalance hurt customers, as weaker operators could not invest in better coverage or faster internet.
The Ufone-Telenor merger changes that dynamic. It establishes true head-to-head competition between Jazz and MergeCo, while Zong remains a close competitor to both companies. Customers are expected to benefit from more competitive packages, faster rollout of new technologies, and stronger coverage.
Sorry jehangir. Everything you said is wrong. All of it completely wrong. It’s actually worrying
When big 3 were the only ones left Ford GM and Chrysler, the car quality drastically went down.
Then big 3 operated in Japan. Toyota Honda Nissan, quality went down there as well. That’s why Nissan had to change their attitude.
When big 3 audit firms were left Ferguson, KPMG, Deloitte , quality of their reporting went down faster.
Wwe was really great during Monday night wars, then their quality stagnated after wcw went down.
Same logic here. Less competition means less desire to innovate or provide better services since people choice becomes limited.
So everything you said is wrong. If there is one thing businesses hate it’s competition.
Well written 👏
Exciting times ahead.
As per August 2024 PTA report, Jazz holds 37.1% market share. Zong is on second position with 26.45% while Telenor and Ufone are on third and fourth spot with 21.75% and 13.71% respectively. After merger with Telenor Ufone now holds 35.46% subscribers, just 1.64% less than Jazz. Interestingly both Telenor and Ufone were in loss while Jazz and Zong were in Profit. It will interesting to see how newly formed merged company will turn losses into profit after combining their resources.
*as per August 2025 PTA report
I don’t think that new merg co will add something extraordinary for customers.service will become worst just like jazz
Dear
You raised valid points.
MergeCo if optimizes resources well like cannibalization, uses fiber backhaul of PTCL, rural coverage of telenor will enhance footprint significantly,could offer a serious competition to Jazz.
4G expansion and 5G readiness are also key here.Jazz BTW is not behind on 5G readiness.
Anyway let’s see how do they advance and quickly.
I like the tone of the article.
Regarding progress ahead, 5g may not be viable. South Korea is already thinking roll back to 4g due to low R.O.I. because zong was ready for 5g in 2019 having access to chinese tech. But since many years zong has been almost silent.
Two of the worst internet providers
زونگ باؤ جی،
ٹا ٹا ، بائی بائی
ابھی سے اپنا سامان پیک کرنا شروع کر دو ۔
Quality is deteriorating . Zong is going down rapidly specially in rural areas. It’s service is pathetic. Unless it improves it’s mkt share is set to go down.
Just a newly gained market share may not be the real game changer alone. It must be time tested. Two weak players may not make one dominant giant if the weaknesses are not handled in the most suitable way. Else it equally may prove recipe for a disaster. Merger at networks and management level is not simple 2+2 game. It has its own complications which hopefully will be dealt in the most positive way.
Everything said here is wrong. Completely wrong
We’ve seen this before.
When time Warner merged with AT&T . It failed in quality and didn’t help anyone
When blizzard merged with Activision , it became a mess
When Chrysler merged under Stellanis, quality went down
Less players means less competition and more exploitation
دو گھٹیا نیٹورک کے ملاپ سے کونسا چمتکار متوقع ہے.
Zong’s performance now a days has become below the customers expectations.
باقی معاملات کو تو پتا نہیں لیکن ایک بات پاکستان میں پکی ہے کہ انڈسٹری کوئی بھی ہو، کچھ معاملات چھوڑ کر ساری کمپنیاں ایک بات پر متفق ہوجاتی ہیں کہ عوام کی جیب سے پیسہ نکالنا ہے. مقابلے کی فضاء میں عوام کو قیمت میں کمی یا کوالٹی میں بہتری کی بجائے، ملکر ریٹ بڑھا دیے جاتے ہیں اور کوالٹی خراب سے خراب تر…
چاہے وہ ٹیلی کام انڈسٹری ہو یا آٹو انڈسٹری، شوگر ملز ہو یا فلور ملز
Jo ma network 5g ma agy nikly ga yaqenan us ko faida ho ga aur lagta aisa hay k 3no networks jaldi hi 5g launch Karen gy competition acha ho ga