The telecom industry of Pakistan has been expanding recently, and recent press sources indicate that Telenor Pakistan is interested in buying a major share in Etisalat’s Ufone in Pakistan and the UAE. Telenor and Ufone are currently the 2nd and 4th largest telecom and digital service providers in Pakistan.
In the last few days, reliable sources looking into the situation have corroborated these stories. Waseem Badami, Pakistan’s top journalist, recently tweeted about the authenticity of this move, which is on the horizon for one of Pakistan’s most important areas.
A few days ago, Telenor Group CEO, Sigve Brekke stated that Telenor was looking for merger opportunities across Asia as well as in Pakistan. The statement was extensively fired and speculations regarding the company were seen concerning its operations in the country.
Telenor Pakistan and Ufone combining their subscriber bases will put them slightly ahead of Jazz, which recently acquired Warid Telecom’s operations in Pakistan. Together, the two companies will have 72 million users, compared to 71 million for Jazz, making Telenor the market leader by a slim margin.
In Pakistan, consolidation of operations has been the norm, and the industry’s overall participants are diminishing. Telenor and Ufone’s merger will reduce the market to just three players: Jazz, Telenor, and Zong. Experts believe that this trend could have a positive or negative impact on competition, customer services, and the overall performance of the organizations.
Despite challenging circumstances, Telenor Pakistan has stayed strong, generating financial results while also investing in digitization efforts in a range of sectors such as fintech, healthcare, and education, to mention a few. According to financial statistics released for the quarter of July-September 2021, the company boosted its operating profit by 12.9 percent year on year. During the same period, the company’s subscriber base increased by 6%, to 48.9 million.
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