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5G Auction Put on Hold as PTCL-Telenor Merger Faces Delays — Ufone Under Fire

ISLAMABAD — Pakistan’s long-awaited 5G spectrum auction has hit another roadblock — and this time, it’s tied directly to the pending merger between Telenor Pakistan and PTCL. According to the Ministry of IT and Telecom, no concrete steps on the 5G auction can be taken until the Competition Commission of Pakistan (CCP) clears the merger.

Speaking to the media, Federal IT Minister Shaza Fatima Khawaja clarified that the delay isn’t due to lack of government interest, but because of ongoing litigation and an unclear regulatory landscape. She stressed that the CCP operates as an independent authority, and the government cannot influence its timeline. Once the CCP issues its decision, the 5G Spectrum Auction Advisory Committee, led by the finance minister, will take it from there.

But things aren’t moving smoothly.

A senior CCP official revealed that Ufone, a PTCL-owned company, has been consistently dodging requests for critical documents — including its audit reports and financial statements. The Commission claims the data submitted so far has been incomplete, confusing, and not in the required format. This lack of transparency, officials suspect, could be deliberate, possibly to avoid disclosing prolonged financial losses.

In contrast, competitors like Jazz, Zong, and Telenor have maintained profitability and transparency. Jazz currently dominates the market with 37% share, followed by Zong at 26%, and Telenor with around 22%. Ufone trails behind with just 13% of the market — the smallest player in the game.

The CCP’s decision is crucial because it will directly impact the design of the upcoming 5G auction. If the merger goes through, Pakistan’s telecom landscape will shrink to three major players, which means the auction rules — including spectrum allocation and pricing — would need to be revised.

So far, PTCL-Ufone has remained silent, not issuing any response to CCP’s claims, even as the industry — and consumers — wait for clarity on the next leap in mobile connectivity.

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