With Ufone-Telenor Merger, Pakistan’s Telecom Sector Becomes a Battle of Giants

The Ufone Telenor merger has officially redrawn Pakistan’s telecom landscape. For years, the market was divided among four operators, but with this merger, the number has been reduced to three, and the balance of power has shifted dramatically. With Ufone and Telenor combined, their joint market share now stands at around 32.8%, a bit further behind Jazz, which leads with about 43%. Zong lags behind at 24.1%. Jazz, with the largest subscriber base, remains the market leader, but the gap has narrowed considerably. From a comfortable lead over Ufone and Telenor separately, it now faces a rival of nearly equal scale. Jazz will need to strengthen its edge in digital financial services through JazzCash, leverage its strong spectrum holdings, and expand its advanced 4G coverage to stay ahead of Ufone/Telenor. The company may also accelerate 5G trials to reinforce its technological leadership. Its biggest challenge will be retaining high-value customers who may be tempted by MergeCo’s renewed strength. MergeCo’s combined spectrum, tower footprint, and customer base create efficiencies that Jazz has not had to contend with in years. MergeCo is expected to prioritize: This combination could make MergeCo the most “end-to-end” operator in Pakistan, with both mobile scale and fixed-line backbone under one group. Zong enters the three-player market with a distinct profile experience of China Mobile. The trajectory highlights its ability to compete on the basis of network coverage, service quality, and customer acquisition strategies in competitive and challenging dynamics. The Ufone–Telenor merger is expected to rebalance market shares, but it also opens opportunities for the industry as a whole. With three major operators, spectrum resources may be used more efficiently, and the sector could see greater investment in 4G and 5G networks. Jazz has the backing of Veon, MergeCo combines the strengths of PTCL and Etisalat, while Zong, as part of China Mobile continues its growth trajectory in new reshaped market. Zong will be a significant player, with ongoing focus on network modernization, digital services, and enterprise solutions. Looking ahead, Zong’s role will be shaped by how effectively it sustains investment and adapts to evolving consumer needs. While the merger changes competitive dynamics, it does not diminish Zong’s position within Pakistan’s telecom sector or its potential to influence the industry’s future direction. Pakistan’s telecom sector has long been imbalanced, with one dominant operator, one hopeful challenger, and two weaker players. That imbalance hurt customers, as weaker operators could not invest in better coverage or faster internet. The Ufone-Telenor merger changes that dynamic. It establishes true head-to-head competition between Jazz and MergeCo, while Zong remains a close competitor to both companies. Customers are expected to benefit from more competitive packages, faster rollout of new technologies, and stronger coverage.