Competition Assessment

Notifying parties jointly submitted a pre-merger application for notifying and seeking approval of the Commission to acquire 100% shares of one Telecom Company by another Telecom Company (collectively called "MergeCo") by way of share swap agreement

Competition Commission, after detailed assessment of the proposed merger, subject to the conditions/obligations/directions imposed by the Commission in response to the commitments made by the parties for the proposed merger, as to spectrum concentration, wholesale access to Mobile Virtual Network Operators (MVNOs), interconnection, joint control/cross-holding, infrastructure sharing, non-complete clause, related party transactions, etc., authorized the proposed merger under S. 31(1)(d)(i) of Competition Act, 2010

Competition Commission however, observed that market entry of Mobile Network Operator and Mobile Virtual Network Operator was possible in Pakistan now, however, an MNO or MVNO deciding to enter the market would need suitable spectrum allocation, which would take considerable time and that in absence of proportionate remedies, market entry would be challenging; Pakistan Telecommunication Authority might review its framework to address such barriers and facilitate the entry of new MNOs and MVNOs by appropriating spectrum management held by various MNOs, as had been mandated under the Telecom Policy, 2015; since the year 2010, PTA had not determined any MNO as an SMP; accordingly, none of the MNO was subject to legal obligations to provide a cost-oriented, fresh carrier grade interconnection reference, which was mandatory to address both competitors and subscribers concerns on the mobile telecommunication market; in absence of sufficient countervailing buyer power on the part of end users, a declaration of SMP would act as a countervailing influence on pricing and quality of service and that PTA's new determination ought to have been based on national competition law and international standards.