CCP initiates merger review hearings for PTCL’s acquisition of Telenor
CCP recently conducted the first Part II Merger Review hearing on acquisition of 100% shareholding of Telenor Pakistan (Private) Limited TP and Orion Towers Private Limited OT by Pakistan Telecommunication Company Limited. This is a major milestone in Pakistan’s telecom sector as the merger could just alter the nature of competition prevalent in the market.
The hearing was chaired by the CCP Chairman Dr. Kabir Ahmed Sidhu, accompanied by commission members Salman Amin and Abdul Rashid Sheikh. It is these officials that are supposed to evaluate the effect of the merger on competition in the market, in compliance with The Competition Act 2010.
PTCL’s Vision for the Merger:
On the merger, the Senior Counsel Ms. Rahat Kaunain Hassan presenting the case for PTCL summarized the company centric viewpoint. She was also briefing about the economic returns and the appearance of growths that this acquisition may offer to the telecom sector of Pakistan. In her view, it is not only the sale of the asset; it is an opportunity for market transformation for PTCL with improving the telecommunication network across the country.
PTCL top management such as the President and Group CEO Hatem Bamatraf, and other members like the senior GM of wholesale services Robert Middlehurst also testified during the hearings. They informed that merger would lead them towards enhancement of quality standard of service, increased investment in technology as well as to better positioning the Pakistan in the Global Telecom Market. As per PTCL, there are propositions that they are in a better position to explore the facilities and technologies of Telenor Pakistan and Orion Towers to make efficient facilities to the consumers.
Major players outside the family:
Such stakeholders of the telecommunications industry as consumers, legislators, regulators, policy makers and manufacturers were key players of this hearing. The possibility to express own concerns and opinions about the merger was provided to these stakeholders by the CCP. M/s Wateen Telecom Limited was up-to make its preliminary submissions by Mian Sami-ud-Din leading the company. As a communication and telecommunication solution provider company, Wateen shared its preliminary issues which will be highlighted in the subsequent hearings and sessions.
Other chiefs who appeared during the hearing were Khurram Ashfaque, the chief executive officer of Telenor Pakistan and Andreas Hogberg, CEO of Orion Towers. These representatives were essential because they explained what they think this merger will mean for their own firms and their plans for the future. Addition to authors, Fawad Ahmad Khan, the Group Director of Regulatory Strategy & Compliance at PTML, and Amer Shahzad, the Director General of Wireless Licensing at the Pakistan Telecommunication Authority (PTA) shared their views also.
The hearing also had other leading telecom players including Jazz, Wateen, Transworld Associates PTCL, Cm Pak LDI Ltd and members of the Frequency Allocation Board besides representatives of Telenor, Orion Towers and PTCL. This wide interest further underlined the importance of the merger especially for the whole telecom market because many of the firms present at the meeting could be the direct or indirect stakeholders of the result of the mentioned merger.
Designation of Phase II Merger Review:
The CCP’s Phase II merger review is being carried out under section 11(6) of the Competition Act 2010. In this stage of the review, the main areas of interest relate to how the merger will influence matters to do with market share and the risks of excessive concentration which hinders competition. The commission has specific concerns that the planned merger should not result in totally dominating the market to the disadvantage of consumers or other market players.
During this review, the CCP has sensibly called in data from its competitors, industry participants, as well as government bodies and other confronting regulatory agencies. This way of working includes as many people as possible to collect as much data about the possible outcomes of the merger as possible in order to come to the best fair solution.
Looking Ahead,Next Hearing:
The merger review continues, the next public hearing shall be held on October 2, 2024. In this meeting, Wateen Telecom will have an opportunity to argue on the validity of the case, and other parties wishing to express their opinions concerning the merger will do so. These talks remain as crucial in defining whether or not the merger will go ahead as planned or should there be provision of conditions that should be met given the current competitive nature of the market place.
Conclusion:
This paper sealed a crucial event in Pakistan telecom industry where the CCP assesses PTCL acquisition of Telenor Pakistan and Orion Towers. When the hearing is on-going, all the possible consequences of this merger will be relied when it comes to the changes in the competition in the given market and the future of telecommunications in the Pakistani state. The CCP is trying to be tactful with its approach in order to impress all the interested parties before a decision is made.