ISLAMABAD: Pakistan Telecommunication Authority (PTA) has approved merger of Mobilink and Warid.
However, the authority bound both the parties not to reduce total number of interconnection circuits (E1s) allocated by them to other operators, including LL, LDI, cellular licensees, without its prior approval. It also directed not to use interconnect capacities or their pricing in a manner to impede other operators’ access to the customer of the merged entity.
PTA warned that it would be free to take any legal action, if information provided by Mobilink and Warid to the regulator for the approval of application was found to be fabricated, incomplete or false.
The regulator also told PMCL (Mobilink) and Warid to continue to submit their annual audited financial statements as separate entities till the amalgamation order. PTA further asked both Mobilink and Warid to submit an unconditional acceptance of all the terms and conditions to obtain the NOC from the authority.
In its 25-page determination, the authority said PMCL was a dominant player in terms of shares in total cellular mobile revenues (28.7 percent) and subscriptions (29 percent), while Warid had the smallest share in terms of revenues (11.2 percent) and subscribers (8.4 percent) amongst the five mobile operators.
The merger of PMCL and Warid will lead to merged entity’s combined revenue share of 39.9 percent and subscribers share of 37.4 percent. PTA has given 15 days time to both the companies to submit unconditional acceptance of the above-mentioned terms and conditions, after which they would be issued a formal NOC.
With CCP’s approval already granted, and a NOC from PTA, both companies will file an acquisition case with the SECP, and that’s where 100 percent shares of Warid will be transferred to Mobilink.
