Pakistan Telecommunication Authority has slowed down one of the biggest post-merger transactions of the telecom sector. The company behind Ufone, PTML, has been prohibited from launching its new re-brand “e&” until certain legal and regulatory issues are settled.
The directive was delivered in an official PTA letter dated 2nd July 2026. It took a request from PTML to accept a new brand name after its merger with Telenor Pakistan, and provided the company with that approval.It took the company to accept the new brand name after PTML merged with Telenor Pakistan and granted it that authorization.
Until all legal aspects are finalised and approved by the regulator no new brand, marketing campaign or commercial activity to be associated with the rebrand can progress.
It is in the wake of the approval of PTML-Telenor Pakistan merger by Islamabad High Court on June 24, 2026. That merger is expected to result in what will become the biggest mobile operator in Pakistan, with a total of nearly 70 million subscribers.
The combined company was thinking about phasing out both Ufone and Telenor. Instead, it was to use the global brand name ‘e&’ which is owned by UAE-based Etisalat, the majority shareholders and management controller of PTCL Group.
But the proposed change is facing real legal problems. A senior official in the Ministry of IT told reporters that it could be a legal hazard for the merged company to use the “e&” name, as it will be a part of the state-owned PTML.
The worry is the international brand name possibly being infringed. Or the combined entity may be forced to pay something to Etisalat, just to be able to use the “e&” name legally.
There is a financial issue which is lingering over the entire process; e& is said to have $800 million in outstanding dues tied to Pakistan, which has added further examination to the matter of whether it is even allowed to proceed with the rebrand.
Sources close to PTA have indicated that it too soon to determine whether the re-brand will be approved in the end. Prior to even requesting regulatory clearance, PTML has to go through its documentation process with the Securities and Exchange Commission of Pakistan (SECP).
Of course, not just the approval of the PTA. Sources say it could eventually go on to require the federal government sign-off, as the government itself holds a large stake in PTCL.
The government now holds about 62 percent of PTCL and Etisalat holds 26 percent and control. The rest 12 percent is invested by private investors in Pakistan Stock Exchange.
PTA has advised PTML to officially inform the regulator after the merger has fully legally come into effect, and prior to the introduction of any new brand or campaign. That until then, and the order remains a strong constraint on a commercial rollout of ‘e&’.
The deal has been moving forward in other aspects apart from the branding issue. Under the current governance, PTCL and PTML have different boards, CEOs and management teams, and PTCL Group has already been granted regulatory permission to merge the tower infrastructure of both Ufone and Telenor.
Ufone and Telenor users, in the meantime, will not be seeing any changes in the branding, service names or apps that are associated with the “e&” identity. Whether that will mean that anything will changes will be decided by how rapid the outstanding SECP requirements are met by PTML, and whether the federal government approves a brand name that also poses international copyright issues and unpaid financial obligations.
