Pakistan Telecommunication Company Limited (PTCL) said on Tuesday that Pakistan’s telecom regulator has approved the proposed amalgamation of its mobile subsidiary Pak Telecom Mobile Limited (Ufone) with Telenor Pakistan, marking a key step toward consolidation in the country’s crowded telecom market.
The Pakistan Telecommunication Authority (PTA) granted its approval on March 19, 2026, subject to the submission of an unconditional acceptance of regulatory conditions within 15 days, PTCL said in a notice to the Pakistan Stock Exchange.
The merger will be carried out through a scheme of arrangement in line with applicable corporate and telecom regulations.
A senior PTCL official told ProPakistani that no further approval from the company’s board is required, as all permissions related to the acquisition of Telenor Pakistan have already been secured. The next phase involves legal formalities, including filing an application for amalgamation before the Islamabad High Court.
Legal Review and Regulatory Oversight
The amalgamation process is expected to take up to four weeks, during which authorities will verify that there are no outstanding legal disputes involving banks, tax authorities, consumers, employees, or other telecom operators.
Officials said the review will also require clearances from the State Bank of Pakistan and the Federal Board of Revenue, along with internal legal approvals from both companies.
Network Integration and Tower Rationalisation
The PTA’s no-objection certificate allows Ufone to begin backend integration with Telenor Pakistan, including the consolidation of spectrum and telecom infrastructure. The combined entity currently operates around 26,000 towers, many of them located in close proximity, creating scope for cost savings through rationalisation.
However, regulators have imposed safeguards on the integration process. Towers shared with rival operators, including Jazz and Zong, cannot be decommissioned without prior approval. In addition, franchise holders must be given at least six months’ notice before any contract termination.
Existing Telenor SIM cards will continue to operate on the Ufone network following the merger, ensuring uninterrupted service for customers during the transition.
Market Impact
Pakistan has roughly 202 million mobile subscribers, with Jazz serving 74.19 million users and Zong 53.90 million. The combined Ufone–Telenor entity will initially have about 72.45 million subscribers, though analysts expect the number to decline by around 10% as many users hold SIMs from both networks and may migrate to competitors.
PTCL signed a share purchase agreement in December 2023 to acquire a 100% stake in Telenor Pakistan in a deal valued at approximately $400 million. The transaction was completed in December 2025 after receiving multiple regulatory approvals.
