Ufone’s move to rebrand as ‘e&’ has hit a pause after the Privatisation Commission instructed Pakistan Telecommunication Authority (PTA) not to approve the proposed brand change.
Ufone e&Rebrand: Privatization Commission Blocks PTA Approval
The Ufone e& Rebrand decision was not within PTA’s authority alone, as it involved agreements between the governments of Pakistan and the United Arab Emirates.
PTA and Government Still Reviewing the Plan
PTA Chairman confirmed the directive while speaking to the press. He said the Privatisation Commission had asked PTA to hold off on approving the proposed brand name change.
The reason behind this is the merger between Ufone and Telenor Pakistan. The Ufone brand name was requested to be changed to e& by PTML, which is an organization of Ufone. According to the Secretary of IT and Telecom, the PTA and the Competition Commission of Pakistan (CCP) have conflicting opinions regarding this matter.
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Why the Ufone Brand Change Is Important
The Ufone Brand Change is linked to the company’s overall ownership structure. e& is the international brand of Emirates Telecommunications Group, a company owned by the UAE government. The corporation holds a 26 percent stake in PTCL Group and controls its management.
The government of Pakistan holds a 67 percent stake in the Ufone Telenor Merger. Since companies from both countries are stakeholders, the Privatisation Commission does not support PTA approving the rebranding decision.
How the Rebranding Process Started
Telenor Pakistan joined Pakistan Telecom Mobile Limited following the merger decision taken by the Islamabad High Court towards the end of June. The surviving entity took over Telenor Pakistan’s assets, liabilities, and other obligations. PTCL Group later said it plans to replace both the Ufone and Telenor brands with e&.
Earlier, PTA had granted the e& brand name a conditional approval. However, PTA told PTML not to promote the new brand until it completed the merger process and received the required notification from the Securities and Exchange Commission of Pakistan (SECP).
Read more: Ufone and Telenor Expected to Introduce 5G Services in Pakistan This May
No Final Decision Yet
The government told the Senate committee that it is examining the matter from different angles. It will hold more consultations before making a final decision. In the meantime, Ufone remains the brand for its over 74 million subscribers. Ufone’s rebranding will be contingent upon more consultations with the relevant authorities and governments. No date has been announced yet for a final decision regarding the name change. News source eTimes Pakistan.
