Ufone – Telenor near merger finalization as 5G auction looms
Government is aiming to generate more than $634 million in revenue from the auction
ISLAMABAD: Pakistan’s 5G rollout has entered a decisive phase ahead of the March 10 spectrum auction, with three major telecom operators depositing a combined $45 million and the merger between Ufone and Telenor Pakistan reaching its final stage.
The developments were shared during a meeting of the National Assembly Standing Committee on Information Technology and Telecommunication, chaired by Amin-ul-Haque on Thursday.
Chairman of the Pakistan Telecommunication Authority (PTA), Maj. Gen. (R) Hafeez Ur Rehman, informed the committee that Jazz, Ufone and Zong had each submitted $15 million as pre-bid earnest money, bringing the total to $45 million and formally setting the stage for the auction process.
The government is aiming to generate more than $634 million in revenue from the auction, subject to competitive bidding and final spectrum pricing. The PTA has also established minimum success criteria to ensure meaningful participation and maintain market stability.
In a parallel development, lawmakers were informed that the proposed merger between Ufone and Telenor Pakistan is in its final phase and will be completed before the March 10 auction. The PTA chairman said the regulator is conducting a final review of documentation and completing all regulatory formalities on a priority basis, assuring the committee that the consolidation will not disrupt the auction timeline.
However, several committee members expressed concerns over possible market concentration following the merger. The committee chairman emphasized that consolidation must not lead to dominance by any single operator. In response, the PTA chief stated that the regulator has already imposed a cap to prevent monopolization and to ensure fair competition in the telecom sector.
The committee also deferred consideration of the Electronic Transactions (Amendment) Bill 2026 after the Ministry of Information Technology and Telecommunication requested additional time for consultation. Officials told lawmakers that further engagement with stakeholders was necessary before proceeding. The proposed amendments are intended to update Pakistan’s digital legal framework in line with evolving e-commerce and technological requirements, though lawmakers stressed the need for broader consensus.
The session further witnessed criticism of the IT Ministry’s performance regarding IT export growth. Committee member Dr. Zulfiqar Ali questioned the ministry’s claims, arguing that export gains were largely driven by freelancers and the private sector. He remarked that IT exports were increasing because freelancers were working tirelessly and suggested that repeated claims about the ministry’s role had become unconvincing.
Responding to the criticism, the IT secretary maintained that globally, IT exports are primarily driven by the private sector. Lawmakers, however, pressed the ministry to clarify what tangible facilitation and institutional support were being provided to investors. Dr. Zulfiqar also alleged that IT investors were not receiving adequate backing and claimed that his own project proposals had remained unanswered despite direct outreach to senior officials.
