PTCL denies reports of Etisalat exit as majority shareholder

Pakistan Telecommunication Company Limited (PTCL) on Thursday rejected media reports suggesting its majority shareholder e&, formerly known as Etisalat, may change its investment position in the company.

The company called the claims baseless and speculative, warning that unverified reports could cause unnecessary market disruption.

Is Etisalat leaving PTCL?

Etisalat has 26% shareholding and management control in PTCL. The telecom giant from the UAE purchased the stake in 2006 for $2.59 billion.

PTCL said it has no knowledge of the sources cited in the reports and stressed the importance of accurate, responsible reporting.

The company said Etisalat remains fully involved in PTCL's plans and strategic direction. PTCL management added that it maintains close coordination with e& on strategy and performance.

What is PTCL's plan for the Telenor acquisition?

In an analyst briefing hosted by Arif Habib Limited, PTCL management outlined its first-quarter 2026 performance and the progress of its Telenor Pakistan acquisition.

The Competition Commission of Pakistan approved the deal in 2025. Court approval for the amalgamation is expected around June 2026, after which commercial integration will begin, with a full commercial launch of integrated services targeted for the third quarter of 2026, subject to regulatory timelines.

Following integration with its mobile arm, Ufone, the combined entity is expected to become Pakistan's largest telecom operator by infrastructure, site count, and spectrum holdings.

It would serve around 73.5 million subscribers and control roughly 290 MHz of spectrum across 2G, 3G, 4G, and 5G technologies. Management expects major synergy benefits to materialize from 2027 onward once integration is complete.

What are PTCL's financial and operational targets?

Arif Habib Limited said PTCL management expects average revenue per user to improve over time, supported by better network quality and coverage. The current combined ARPU for Ufone and Telenor Pakistan stands at around PKR 300 to 310. Both operators are running EBITDA margins above 40%, with no significant gap between them.

As part of its optimization strategy, PTCL plans to shed around 7,000 towers, with average monthly operating costs estimated between PKR 250,000 and PKR 300,000 per tower. Additional efficiencies are expected through facility management, administrative cost reductions, and consolidation of marketing, sales, and distribution channels.

PTCL's total debt rose to PKR 298 billion by March 2026 from PKR 126 billion in 2023 due to acquisition-related financing, though the debt-to-EBITDA ratio improved from 3 times to 2 times.

The company also disclosed a seven-year financing facility from the International Finance Corporation, including a one-year grace period. The group reported PKR 81 billion in income tax receivables and PKR 26 billion in deferred tax assets.

What is PTCL's 5G and fiber strategy?

PTCL management noted that only around 2.5% of devices in Pakistan are currently 5G compatible.

The company is working with the Pakistan Telecommunication Authority and the government to develop financing solutions to boost device adoption. Rollout plans will depend on demand and device penetration, despite regulatory requirements for around 1,000 sites annually.

On fixed broadband, PTCL said it remains Pakistan's largest fiber-to-the-home operator with around 833,000 subscribers. The company plans to double or triple its fiber footprint and subscriber base by 2030.