CCP to Hear Mobilink-Warid Merger Case Tomorrow 2016:The Competition Commission of Pakistan (CCP) will hold the 2nd hearing of the Mobilink-Warid merger case on Wednesday (March 9) after a one month gap, we have checked with sources who are directly aware of the development.
The first hearing of the case was held on February 12. The next hearing will depend on tomorrow’s hearing; however, the Commission is required to give final decision within three months.
It won’t be out of place to mention that Telenor had raised its concerns over the merger and had said that merger in current form with such taxes on telecom industry will negatively impact the market.
CCP’s approval for merger will have far-reaching effects on the telecom sector in the country in general and the upcoming Next Generation Mobile Services (NGMS) Spectrum Auction in particular.
If the merger gets approved, Mobilink will not need to participate in the upcoming 4G license while Zong is already carrying both 3G/4G licenses. However for the other competitors, 4G license will be required to compete in the market.
Currently Mobilink leads the market with around 37 million customers while Telenor is closing in on the gap with 36 million subscribers. However, after planned merger of Mobilink and Warid, Mobilink will be able to widen the lead with more than 47 million post-merger customers.
Mobilink and Warid Telecom had applied for merger with Competition Commission of Pakistan for approval. Along side, Pakistan Telecommunication Authority and other concerned authorities are also being being taken on-board. However, CCP’s nod is going to be most crucial part for the mandatory approval process.
After getting CCP nod, PTA will consider the case and will give final decision in this regard and in case of approval, both companies will be allowed to join their businesses in the country.
Mobilink and Warid have submitted all required details and necessary documents for the merger. CCP, during its hearing, will try to ascertain if merger of Mobilink and Warid will create any anti-competitive scenarios in the market or not.
We will be updating our readers when we get more information on the case.