ISLAMABAD: Wateen Telecom Ltd and Jazz telecom presented legal arguments against the acquisition of Telenor Pakistan and its merger with the Ufone at the hearing held here by the Competition Commission of Pakistan (CCP).
The Phase II Merger Review of PTCL’s proposed acquisition of 100 percent shareholding in Telenor Pakistan and Orion Towers Private Limited continued on Wednesday.
The hearing was conducted by CCP Chairman, Dr. Kabir Ahmed Sidhu, with the presence of members Salman Amin and Abdul Rashid Sheikh.
PTCL-Telenor acquisition: CCP holds first phase-II merger review hearing
Mian Sami-ud-Din, counsel for Wateen Telecom presenting his case said that PTCL was the wholesale supplier of several backhaul services for the cellular mobile operators (CMOs) including the LDI service.
However, like some previous practice the PTCL has shifted the LDI service for Ufone from Wateen, in Balochistan, and after the proposed merger the PTCL will eventually snatch all the LDI businesses currently held with Telenor.
The CCP hearing was informed that there were around 20 LDI companies operating in the country but the PTCL already had around 48 percent LDI market share, and the dominant player can foreclose its rivals in LDI business.
He emphasised the need to consider all aspects of competition that may be affected by the merger.
A leading telecom operator Wednesday raised concern with the Competition Commission of Pakistan (CCP) that the PTCL’s acquisition of Telenor could give it a dominant position in the market.
The telecom operator also recommended the CCP that the PTCL should be mandated to provide wholesale, non-discriminatory access to other operators, along with fair terms for active infrastructure, fiber, and spectrum sharing and trading, CCP was further informed on Wednesday.
During the proceedings of Phase-II Merger Review held at the CCP, Jazz Telecom’s counsel Khalid Ibrahim argued that PTCL’s acquisition of Telenor could give it a dominant position in the market. Therefore, the Commission should impose both pre-merger and post-merger conditions. These conditions could include requiring the merged entities to allow other mobile operators to roam on their network under mutually negotiated terms.
The Competition Commission of Pakistan (CCP) is actively progressing with the Phase II Merger Review of PTCL’s proposed acquisition of 100 percent shareholding in Telenor Pakistan (Private) Limited (TP) and Orion Towers Private Limited (OT). The hearing was conducted by CCP Chairman, Dr. Kabir Ahmed Sidhu, with the presence of members Mr. Salman Amin and Mr. Abdul Rashid Sheikh.
During the proceedings, Mian Sami-ud-Din, partner BNR counsel for Wateen Telecom Limited, presented his submissions, urging the Commission to assess competition dynamics within the sub-markets (Indefeasible Right of Use (IRU), Tower colocation and fiberization of towers) of the telecom sector. He emphasized the need to consider all aspects of competition that may be affected by the merger.
On the other hand, PTCL’s legal representatives emphasized the merger’s potential to bring efficiency, economies of scale and drive advancements towards a Digital Pakistan by transforming the IT ecosystem. PTCL was represented by Senior Counsel Rahat Kaunain Hassan and Mustafa Munir Ahmed, partner at Legal Oracles.
The bench raised pertinent questions to the representatives of PTCL, Wateen Telecom, and the Pakistan Telecommunication Authority (PTA), seeking further clarity on the potential impact of the merger and to highlight relevant statutory regulations. The CCP has also requested additional data and information from PTCL and Telenor to assist the bench in its Phase II Merger Review. The hearing will resume for its third day (Thursday), October 3, 2024.
Given the complexity of the market structure involved, CCP remains committed to ensuring that the merger results in positive outcomes for Pakistan’s telecom market while addressing concerns from all relevant stakeholders.
Copyright Business Recorder, 2024
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