The Pakistan Telecommunication Authority (PTA) has issued an order imposing several regulatory conditions on the merger of Ufone and Telenor to oversee the transfer of licenses and the consolidation of the two companies into a single telecom entity.
The order consolidates applications related to the transfer of PTA licenses and the amalgamation of the two telecom operators into PTML/MergeCo, ensuring that the merger complies with regulatory requirements and safeguards consumer interests throughout the process.
One of the key conditions requires financial separation within the merged entity. PTML/MergeCo must maintain separate accounts for its various business units and submit detailed annual financial statements to the PTA for review. This requirement is intended to ensure transparency and prevent financial practices that could undermine consumer protection or distort the telecom market.
In addition, the PTA has emphasized consumer protection measures. PTML/MergeCo will not be allowed to introduce predatory pricing or impose tariffs that could burden consumers.
Any changes in tariffs must be submitted to the PTA for approval. The authority has also directed the company to submit a contract of service in line with the Telecom Consumers Protection Regulations to ensure continued consumer safeguards during the transition.
Quality of service (QoS) standards have also been included among the merger conditions. PTML/MergeCo is required to meet or exceed existing performance benchmarks for network speeds, data throughput, and downtime in accordance with PTA’s QoS standards for 4G and LTE services. The regulator has reserved the right to intervene if service quality declines.
The PTA has further directed the merged entity to ensure effective management and utilization of radio spectrum and access services. PTML/MergeCo must maintain uninterrupted service delivery and ensure that any new spectrum usage complies with regulations governing microwave spectrum without negatively affecting the broader telecom ecosystem.
The regulator said the conditions are aimed at maintaining competitive balance in the telecom sector and protecting consumers from potential monopolistic practices following the merger.