The Auction Advisory Committee has asked the federal government to help speed up the Telenor-Ufone merger. The delay in finalizing this deal is affecting the upcoming 5G spectrum auction. According to sources, this decision was made in a meeting led by Finance Minister Muhammad Aurangzeb at the Finance Division.
In the meeting, the Pakistan Telecommunication Authority (PTA) explained the country’s 5G auction plans and the problems delaying the process. Officials said that in November 2024, an international consultant was hired to study the telecom market and work with industry experts. The consultant has now completed the research, and the pricing model, auction system, and network setup plans will be finalized soon. The auction is expected in mid-2025.
A major issue is the uncertainty around Ufone’s purchase of Telenor Pakistan. The Competition Commission of Pakistan (CCP) has not yet made a decision on the merger. This has left both telecom companies unsure if they can take part in the 5G auction. It has also made it hard for PTA to decide how many telecom companies will be in the market, which affects spectrum allocation rules.
Another challenge is the legal disputes over important 5G frequency bands. The 2600 MHz band, which is important for 5G services, has been stuck in legal cases since 2007. The 1800 MHz band is also facing similar problems. These legal issues may cause further delays in launching 5G in Pakistan.
The CCP has already completed the first phase of its Telenor-Ufone merger review and found that the deal could reduce competition in the telecom market. The second phase is more complex because it involves studying market control and industry competition. Several meetings and discussions with experts have been held to understand the effects of the merger.
In June 2024, Pakistan Telecommunication Company Limited (PTCL) secured $400 million in financing from an International Finance Corporation (IFC)-led group to buy Telenor Pakistan and Orion Towers (Pvt.) Limited. However, even with the required funding, regulatory delays are slowing down the process. This is affecting the telecom market and delaying the 5G rollout in Pakistan.
The meeting was attended by Minister for Industries and Production Rana Tanveer Hussain, Minister of State for IT and Telecom Shaza Fatima Khawaja, PTA Chairman, Secretary of IT, Secretary of Law, and other senior officials.
