Chairman PTA Appointment: Government Test Case for Meritocracy

For the past three decades, Pakistan’s economy was driven by a few sectors amongst which Telecom was one of the important players. However, this changed during the previous Government as we saw a decline in the industry. The impact of this downturn resulted in mass layoffs. The companies were trying to keep their balance sheets afloat and the negative ripple effect on the downstream industry like VAS and others forced them to exit the market. Moreover, the inability of the regulatory body to shift the industry to embrace newer technologies like 5G will have a long-term impact on human resource development that is seen as a game changer for the country’s economy on a larger spectrum and the telecom industry specifically.

In addition to the many factors such as the economy and other indigenous issues, the industry experts and the important stakeholders point their fingers mainly at the leadership of PTA. They blame the Telcom Regulatory Authority for driving the industry into a blocked alley. This is probably one of the reasons that the Government has decided not to renew the tenure of Chairman Amir Azeem Bajwa at least, for now, and the fate of Member Compliance Dr. Khawar Khokhar is still to be decided. The PTA is comprised of three members of which the tenure of the Member Finance has been rolled over surprisingly.

In the contemporary world, institutions can be regarded as the main pillars of any nation. State affairs are carried out through these institutions and authorities, so they play a vital role in the development of the state. Therefore, it is important that these institutions must act in a strong and integral manner for optimal state functioning. It primarily depends on the individuals that are responsible for running the institution. Among these individuals, the most important one is the head of the institution as he/she is in charge of almost everything happening in the respective state body. Before we move towards the traits that should essentially be kept in mind before bringing in the new leadership to steer the industry, let’s first look at the main responsibilities, historical perspective and the process of selection of our national telecom regulator PTA.

What are the responsibilities of the PTA?

The PTA’s main responsibilities include issuing licenses to telecommunication operators, developing and growth of new technologies for the benefit of consumers, ensuring the provision of quality services to consumers, and promoting competition in the market. It also plays an important role in the allocation and management of the radio frequency spectrum along with Frequency Allocation Board and in developing policies related to the telecommunication sector.

Vacant Post of Chairman PTA:

Beginning this year, the seat of Chairman PTA became vacant after the tenure of the former head Mr. Azeem Bajwa ended, and the tenure of Member Compliance Dr. Khawar Khokhar is also ending in January 2023. While the process does take 3-6 months but usually Government being lethargic delays the process instead of starting it on time and this time it is no exception.. So many of you might be curious about how the selection of a Chairman PTA is carried out and which traits are essential for becoming the head of the national telecom regulatory body. The cabinet division which is responsible for overseeing the regulatory bodies also looks after the PTA. They have posted an advertisement already for the post of Member (Technical) as you can see in the given image. It is reported in the press that 60 applicants have applied for the post.  After the selection of the Member (Technical), the cabinet will appoint the chairman from among the three Members others being Member Finance and Member Compliance. It is pertinent to mention here that in the past all the Chairmen appointed were the Members (Technical).

How PTA Chairman is appointed?

The Government established some new rules for the appointment of the Chairman and other Members of the Pakistan Telecommunication Authority back in 2013. An SRO was published in this regard and it said that the number of PTA executive members has been expanded from two to three and that the Telecommunication (Reorganization) Act of 1996 has been amended. The tenure for these positions is 4 years from appointment.

The PTA consist of three Executive Members:

• Member (Technical)
• Member (Finance)
• Member (Compliance and Enforcement)

Appointment Procedure for PTA Chairman and Members:

The following are the educational prerequisites for becoming members.

Member Finance:

Financial expert / Chartered Account from a recognized institute, MBA (finance) from a national or international university with 15 years of experience, including at least five years at the top management level.

Member Technical:

Ph.D. in telecom system / Electronics / Electrical Engineering with specialization in Telecommunication and 15 years of relevant experience in a responsible position in the public or private sector, or M.Sc / M.S. (Electrical / Electronics / Telecommunication Engineering) with specialization in Telecommunication or radio-communication and a minimum of 18 years of relevant experience in a responsible position in the public or private sector.). Compliance with the Pakistan Engineering Council. The experience of working in the field of telecom is preferred.

Member Compliance and Enforcement:

Professionally Chartered Qualification in Business Finance / Regulatory Economics / Strategic Leadership, Corporate Management Telecommunication / Computer Sciences / Information Technology from local or foreign university with 15 years of experience, including at least five years at top management level Or masters degree in the above disciplines from foreign or local university with 18 years relevant experience in the Public / Private Sector.

Selection Committee from Cabinet Division:

A selection committee is constituted by the cabinet division which conduct interviews for making recommendations and shortlisting candidates.

The selection committee generally consist of the following individuals:

• Minister / Minister of State as designated by the Prime Minister (Chairman)
• Secretary Cabinet (Member)
• Secretary IT (Member)
• Additional Secretary-II, Establishment Division (Member)
• Additional Secretary of the concerned division (Member)
• Chairman PTA (If in position (Member) (In case of PTA member selection)
• An expert in the relevant field of the post advertised, not below BS-20 / equivalent from the public/private sector to be nominated by the secretary of the concerned Ministry.

Appointment of Chairman with the Approval of Prime Minister:

After rounds of interviews with those who qualify and get shortlisted, a cabinet meeting is called and a list of shortlisted candidates is placed before the Cabinet. Finally, with the approval of the Prime Minister of Pakistan, the cabinet appoints the Chairman of PTA from among the members (Member Technical, Member Finance, Member Compliance & Enforcement).

What can be the most important traits for becoming Chairman of PTA?

The best individual to lead a national telecom body would depend on that organization’s specific goals and needs. However, in general, a leader who has a strong understanding of the telecommunications industry, relevant technical, regulatory, business and legal knowledge and experience in managing organizations or multi facet teams would be well-suited for this role. Additionally, effective communication skills and the ability to collaborate with stakeholders such as local and foreign industry leaders, government officials and consumer groups would be important traits that one should look at in a Member and the Chairman. Following are some of the key traits which in our opinion must be possessed by the Chairman PTA under the present challenging situation of the Industry:

Active Player of the Industry:

As the head of a national regulatory body, the individual candidate will have to play a vital role in shaping the telecommunications industry within the country. They are responsible for creating policies and regulations that govern the industry, and for ensuring that these policies are implemented effectively. This includes promoting competition in the market, encouraging investment in network infrastructure, and protecting the interests of consumers. Furthermore, they also act as a liaison between the government and the telecom industry, representing the industry’s interests to the government, and communicating government policies and regulations to the industry.

Creating a conducive business environment for existing and new players:

In our country, we have seen that the telecom operators including all Mobile Operators such as Jazz, Ufone, Telenor, Zong, and Nayatel usually have genuine grievances regarding spectrum auctions, ROW, and other issues. In this regard, the Authority members plays a crucial role by bringing telcos to the table and keeping them in good spirits. Moreover, this healthy partnership and relationship help in attracting further investments to the telecommunications industry within the country. By having regular meetings, setting up task forces, encouraging collaboration, and offering incentives, the Chairman can create a platform for telcos to voice their concerns and work together to address industry-related issues. This helps to promote a healthy and competitive telecom industry.

Furthermore, having a deep understanding of the latest technologies and trends, such as 5G, and being able to create policies and regulations that promote the deployment of these technologies and infrastructure is crucial to attracting investment in the telecoms industry. He can also play a significant role in promoting competition in the market, which can attract more investment. By encouraging smaller companies to enter the market and promoting new technologies and services, they can create a dynamic and innovative industry that is more attractive to investors.

Knowledge of newer technologies & their impact:

5G technology and technologies to come after this generation is a key areas of knowledge for the executive members in the contemporary era. It represents the latest and most advanced generation of wireless technology.  Understanding the latest technology trend is essential for the head and members of a national regulatory body to make informed decisions about how to improve network infrastructure and increase connectivity in their country. Some of the benefits of newer technologies such as 5G include faster internet speeds, lower latency, and greater capacity for more variety of devices such as IoT etc.

Having knowledge of newer technologies can help the PTA to create policies and regulations that promote the deployment of 5G. It also helps in ensuring that the country’s telecoms infrastructure is up to-date and competitive on a global level. Additionally, it also plays a vital role in identifying the potential challenges of newer technologies bring such as security and privacy concerns.

Understanding of Business and Government Taxation System and its impact:

The new leadership should have a deep understanding of the business environment and how it impacts the ICT sector. In recent times, we have been covering taxes on different equipment and smartphones. During our research, we analyzed that there are a few glitches in the system as taxes on certain equipment and smartphones are way higher than the others of the same price bracket. Therefore, the new leadership should have a strong understanding of the business, especially the impact of tax mechanisms that should not impair the development of the ICT sector in the country.

Unfortunately, Pakistan doesn’t have a strong institutional structure which has affected the state in a negative manner. The retired people from the armed forces, judiciary, and bureaucracy mostly get the opportunity to head such organizations of which they have little or no knowledge. They are usually rewarded for their closeness to the power centers. It has dented the integrity and efficacy of the institutions. PTA had been facing a similar situation for quite some time. Therefore, a question arises whether this time too, meritocracy is to be overridden and talented individuals would be let down when competing with the retirees. We hope meritocracy to prevail in all institutions in the future. This shall be evident from the appointment of the PTA Chairman.

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