LDI License Granted to Two More Local Companies: PTA
Pakistan Telecommunication Authority (PTA) has recently granted a Long Distance International (LDI) license to two more local companies, HG Telecommunications (Pvt.) Ltd. and Zeta Technologies (Pvt.) Ltd. These companies have fulfilled all legal requirements and have submitted a $0.5 million license fee and $10 million bank guarantees for the installation of a 1,500 km optical fiber cable.
What is an LDI License?
The Pakistan Telecommunication Authority (PTA) issues LDI (Long Distance International) licenses to organizations so they can offer international long-distance telecommunication services in Pakistan. With the use of the license, the business is able to function as an international gateway for phone and data traffic going between Pakistan and other nations. International private leased circuits (IPLCs) and international bandwidth services may also be established and run under the license. In order to guarantee that clients receive high-quality services, the PTA has established LDI license obligations and regulations linked to network infrastructure and service quality.
The addition of these two new companies increases the total number of LDI operators in the country to 19, including existing companies such as PTCL and NTC. Both HG Telecom and Zeta Technologies are locally registered with the Securities and Exchange Commission of Pakistan (SECP), and therefore, no clearance was required for their registration. However, foreign companies or those with foreign directors must obtain clearance from the Ministry of Interior.
PTA officials state that the new license carries enhanced Roll Out obligations regarding Optical Fiber Networks and Quality of Service Standards. This development will help pave the way for the absorption of advanced technologies, not only in major cities but also in small towns and cities across Pakistan.
It is worth noting that the Cabinet Committee on Regulatory Bodies (CCRB) had imposed a watch hold on the issuance of Mobile, Local Loop (LL), and LDI licenses for seven years in March 2006. This watch hold ended on 22 March 2013, and as a result, an LDI license was issued to China Mobile Pakistan (CMPak). However, after issuing a license to CMPak, the issuance of LDI licenses was suspended.
Last year, after an eight-year gap, the PTA opened LDI licenses, and Cyber Internet Service Private Limited was the first company to receive an LDI license in eight years on 14th June 2022. With the issuance of licenses to HG Telecom and Zeta Technologies, the number of LDI operators in the country has increased, which is expected to contribute positively to the growth and development of the telecommunications industry in Pakistan.
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