Telecom operators with more than 25 percent of revenues in a relevant market may be presumed to have Significant Market Power (SMP) under amendments proposed by the Pakistan Telecommunication Authority (PTA), potentially subjecting them to stricter pricing and tariff controls.
The Ministry of Information Technology and Telecommunication has prepared the draft Telecommunication Competition Rules, 2026, to promote fair competition and prevent discriminatory practices in the telecom sector.
Under the proposed amendment, a 25 percent revenue share would serve as an initial threshold for determining market power. However, operators below the threshold could still be declared to have SMP, while operators above it may be found not to have SMP if a broader market assessment does not support the determination.
PTA may consider several factors when assessing market power, including market concentration, spectrum holdings, financial and technical strength, control over essential infrastructure, subscriber and distribution access, economies of scale, vertical integration, entry barriers and network effects.
Operators designated as having SMP could face additional obligations, including pricing and tariff controls, greater transparency, accounting separation, interconnection and infrastructure access, wholesale service and national roaming requirements, and measures against discriminatory or exclusionary practices.
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