Key points
- Telenor does not see viable path to funding the significant investment: Revhaug
- Says Telenor Group invested $2.4b in Pakistan over the past 11 years
- The scale of investment required for 5G and future technologies significantly high: Revhaug
ISLAMABAD: Head of Telenor Asia, Jon Omund Revhaug, has said that Telenor Pakistan has decided not to participate in the upcoming 5G spectrum auction, citing market conditions and limited financial capacity.
In a recent interview with Developing Telecoms, Revhaug said the company does not see a viable path to funding the significant investment required for 5G under the current industry structure in Pakistan.
The head of Telenor Asia highlighted that while Telenor Group has invested $2.4 billion in Pakistan over the past 11 years, the scale of investment required for 5G and future technologies significantly surpasses the current financial capacity.
“Industry is evolving”
“I see no reason to open a license under the current structure in Pakistan. The industry is evolving, and we have a limited amount of resources. We will invest them in markets where we can reach a number one position,” he stated.
Revhaug said the proposed merger between Telenor Pakistan and Pakistan Telecommunication Company Limited (PTCL) is expected to enhance competition in the telecom sector. However, delays in regulatory approvals could stall the rollout of 5G services and hinder progress on digital inclusion in Pakistan, he maintained.
In December 2023, Telenor Group announced that it had signed a binding agreement to sell 100 per cent of Telenor Pakistan to PTCL, part of the e& Group, for approximately NOK 5.3 billion (~$385 million) on a cash- and debt-free basis.
Strategic move
This strategic move concluded the group’s restructuring review launched in mid-2022. Telenor intends to reorient its Asian portfolio around major players in Bangladesh, Malaysia, and Thailand. The deal is expected to enable consolidation in Pakistan’s telecom sector, combining Telenor’s reach with PTCL/Ufone’s infrastructure and spectrum assets.
Revhaug described the merger as an important step toward stabilising Pakistan’s telecom industry. He maintained that the merger would enhance competition and enable the scale and capital necessary for future infrastructure development. “However, delays in regulatory approvals can stall progress on 5G rollout and digital inclusion efforts,” he warned.
Meanwhile, Telenor Pakistan has reported robust growth in the second quarter of the fiscal year 2024-25. The company announced a 15 per cent year-on-year increase in service revenue and an impressive 27.9 per cent organic growth in adjusted EBITDA.
Stable market dynamics
The Q2 2025 performance was driven by consistent monetisation strategies and stable market dynamics. A major contributor to revenue growth was an 18 per cent rise in average revenue per user (ARPU), reflecting effective price adjustments. However, this came alongside a 3.7 per cent decline in the subscriber base compared to the same period last year.
Despite these gains, uncertainty clouds the company’s long-term outlook in Pakistan’s telecom sector.
