The Auction Advisory Committee has decided to request intervention from the federal government to expedite the Telenor-Ufone acquisition deal, as ongoing delays are affecting the preparations for the upcoming 5G spectrum auction.
This decision was made during a recent meeting chaired by Federal Finance Minister Muhammad Aurangzeb at the Finance Division. During the meeting, the Pakistan Telecommunication Authority (PTA) provided a detailed briefing on the country’s preparations for the 5G spectrum auction and the challenges it is currently facing.
According to sources, PTA officials informed the committee that an international consultant was hired in November 2024 to assess the telecom market and engage with key stakeholders. The consultant, selected under Public Procurement Regulatory Authority (PPRA) rules, has completed the market assessment, and the pricing structure, auction design, and network rollout plans are expected to be finalized soon. The spectrum auction is scheduled for mid-2025.
The PTA highlighted several challenges in conducting the 5G auction, including delays in the acquisition of Telenor Pakistan by Ufone (PTCL Group). The Competition Commission of Pakistan (CCP) has not yet made a decision on the acquisition, creating uncertainty for both companies regarding their participation in the spectrum auction. The unresolved case is preventing the PTA from determining whether the telecom market will have three or four players, which is crucial for setting a spectrum cap.
In addition, PTA raised concerns about ongoing legal disputes over key spectrum bands. The 2600 MHz band, which is considered essential for 5G services, has been tied up in litigation since 2007, while the 1800 MHz band is also under legal scrutiny. These legal challenges pose a risk to the timely launch of 5G services in Pakistan.
The Competition Commission of Pakistan has completed its Phase I review of the Telenor-Ufone merger, concluding that the deal could significantly reduce competition in the telecom sector. The Phase II review process has been delayed due to challenges in assessing market dominance and potential industry concentration. Multiple hearings and consultations with stakeholders have been conducted to evaluate the acquisition's potential impact.
Pakistan Telecommunication Company Limited (PTCL) had secured financing agreements in June 2024 with an International Finance Corporation (IFC)-led consortium for up to $400 million to fund the acquisition of Telenor Pakistan and Orion Towers (Pvt.) Limited. Despite obtaining financial backing, regulatory delays continue to obstruct the finalization of the deal, affecting the overall telecom market and 5G rollout plans.
The meeting was attended by Minister for Industries and Production Rana Tanveer Hussain, Minister of State for Information Technology and Telecommunication Shaza Fatima Khawaja, PTA Chairman, Secretary of the Ministry of Information Technology, Secretary of the Ministry of Law, and other senior officials.