The merger is agreed under tough restrictions meant to stop misuse of market power and ensure the new company remains bound to future spectrum auctions.

The regulator said these measures are essential because PTCL already holds a dominant position in the telecom sector. To keep competition fair, the PTA has followed the Competition Commission of Pakistan’s earlier ruling and treated PTCL and Ufone (Pak Telecommunication Mobile Ltd) as separate legal entities.

‘Both must maintain individual accounts and cannot cross-subsidize each other’s operations.’

Cross-subsidization occurs when profits from one service are used to support another that is loss-making or priced very low. PTA says this creates unfair advantages and harms smaller operators.

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In its order, issued on Thursday, the PTA approved the merger of Telenor Pakistan, Telenor Long Distance International Communications (TLDI) Company, and Orion Towers with PTCL.

The unified mobile operator created from Ufone and Telenor Pakistan will operate as ‘MergedCo’.

PTA Chairman Hafeezur Rehman, member finance Muhammad Naveed, and member compliance and enforcement Dr Khawar Siddique Khokhar have signed the order.

The decision bars the merged company from exclusive agreements, unfair pricing, and discriminatory practices.

The PTA further directed that PTCL and MergedCo from entering into exclusive agreements that block other operators from buying bandwidth. All liabilities of Telenor Pakistan, TLDI, and Orion Towers will now be taken over by PTCL.