Islamabad High Court’s Landmark Ruling: CMPak 1800 Mhz Spectrum Declared Illegal

In a landmark decision, the Islamabad High Court has ordered China Mobile Pakistan Limited (CMPak), the parent company of Zong, to vacate the 1800 MHz band spectrum due to unauthorized use. CMPak 1800 Mhz spectrum has been now declared illegal. The court’s ruling also includes a substantial financial penalty, marking a pivotal moment in Pakistan’s telecom industry.

Islamabad High Court Ordered To Vacate CMPak 1800 MHz Spectrum

The ruling stems from writ petitions No. 3626/2019 and No. 3458/2020, as well as a first appeal against order No. 133/2020. The court declared 1800 MHz spectrum usage illegal and unauthorized. Moreover, the company has been instructed to immediately vacate the band. This is not it. The company has been slapped with a significant penalty, calculated at USD 29.5 million per MHz over 15 years, along with other applicable fines.

This decision is anticipated to have significant ramifications for the telecom sector in Pakistan. It sets a precedent for all telecom companies who use unauthorized spectrum. The financial burden imposed by the Islamabad High Court will badly impact CMPak’s operations and overall financial health. Stakeholders across the industry are closely watching the situation. The Pakistan Telecommunication Authority (PTA) has accepted the verdict, underscoring its commitment to maintaining fair competition within the telecom sector. On the contrary, China Mobile Pakistan Limited is anticipated to challenge the ruling through an appeal due to the potential impacts on its business.

The result of this case is likely to shape the regulatory landscape of Pakistan’s telecom industry in the coming years. It underscores the importance of adhering to licensing agreements and the serious outcomes of non-compliance. As the case unfolds, industry experts will be eager to see how this ruling impacts future cases and the operations of other telecom companies in the region.

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