PTC targets Ufone Telenor network merger completion next year

November 02, 2026 (MLN): Pakistan’s largest integrated telecom group expects to finish merging the Ufone and Telenor networks next year, with over 40% of the work due by end-2026. Meanwhile, 5G services are now live in Karachi, Lahore, Islamabad and other large cities.

With only ~4% of handsets 5G-enabled, mass adoption is seen taking another 2-3 years. For now, available spectrum bands are being used to add 4G capacity and ease congestion, according to the corporate briefing on 3QCY26 results.

The combined operation currently relies on three equipment vendors, one for Ufone and two for Telenor. A tender to pick new vendors and assign operating areas is underway and should close by 4QCY26.

Early savings are coming from energy costs after overlapping sites were shut, and the full gains from decommissioning are expected within a year of consolidation.

Separately, PTC has started moving its towers into subsidiary Orion Towers, which will take 4-6 months and could be followed by an outright sale or a partnership. The plan is still at an early stage.

Network outages in AJK and parts of KPK cost an estimated Rs1bn in revenue during the quarter. More than half of them have since been restored, and Telenor’s strong footprint in KPK is expected to help win back subscribers.

Investment this year has reached Rs100bn (up 3.4x YoY), going mainly to 5G spectrum, fibre rollout and network integration.

PTC (PSX: PTC) reported a consolidated profit of Rs62m (EPS: Rs0.01) in 3QCY26, against a loss of Rs1.3bn (LPS: Rs0.25) a year earlier. For 9MCY26, earnings were Rs4.73bn versus a loss of Rs11.18bn.

Revenue rose 61% YoY to Rs103bn, with the mobile arm (Ufone and Telenor) growing 2.4x and PTCL 9%, while UBank’s revenue fell 14%.

PTCL slipped to a Rs2.7bn loss on a new regulatory charge on incoming international calls, higher energy costs and Telenor acquisition financing.

The mobile arm’s profit grew 3.6x on the Telenor addition. UBank’s profit grew 82% on credit-loss reversals, even though its suspended markup income cut about Rs600m from quarterly revenue.

Selling and distribution costs included Rs731m of digital commissions reclassified after the merger. Non-operating costs of ~Rs1.7bn included ~Rs900m of merger-related consultancy fees, with more instalments to follow.

The US¢0.5 per minute levy on incoming international traffic added about Rs1.2bn in recurring cost, with 3QCY26 the first full quarter affected. It is expected to reduce grey traffic and push more volume through licensed LDI operators.

The combined mobile base stands at 76.3mn subscribers (~36% share), including 52.6mn on 4G, with ARPU of ~Rs315, up ~6% from pre-merger levels. PTCL’s FTTH base is 978k (38% share) and its fibre reaches ~2mn homes in 90 cities.

UBank has 8.8mn depositors, deposits of Rs154bn (+14% YoY) and loans of Rs89.5bn (+5% YoY).

Copyright Mettis Link News