PTA Cancels Licenses of Five Defaulting LDI Companies including WorldCall and Wateen Telecom

The Pakistan Telecommunication Authority (PTA) has taken strict action against five Long Distance International (LDI) companies for failing to clear their dues. PTA has cancelled the licenses of these defaulting LDI companies and directed them to immediately shut down their operations.

The affected companies are WorldCall, Wateen Telecom, Voice Communication, Telecard, and Circle Net. PTA said these companies repeatedly failed to comply with its orders. As a result, their licenses have now been revoked through separate official notifications.

PTA Cancels Licenses of Five Defaulting LDI Companies

PTA has instructed cellular mobile operators to discontinue all telecom facilities being provided to these companies. It has also directed Class Value-Added Service license holders to stop offering any kind of services to them.

The regulator had earlier given these firms one month to pay their outstanding dues. The amounts were significant. Wateen Telecom was ordered to pay Rs. 6.25 billion, Circle Net Rs. 5.9 billion, Multinet Rs. 1.41 billion, Redtone Rs. 14.31 billion, WorldCall Rs. 5.69 billion, and Telecard Rs. 4.07 billion.

Despite multiple hearings, no progress was made on either repayment or renewal of licenses. According to PTA, these companies collectively owe Rs. 24 billion in principal amounts and Rs. 56 billion in late payment surcharges.

There are currently 13 LDI companies in Pakistan. Out of these, four had their licenses renewed in 2024. Seven companies’ licenses expired the same year, while two licenses will expire in 2025 and 2026.

The authority further revealed that the defaulting firms have not been paying Universal Service Fund (USF) and APC charges for several years. These are mandatory payments meant to support telecom services in underserved areas.

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The decision to cancel the licenses was made after careful hearings. PTA stated that it acted in light of guidance from the Ministry of Information Technology and based on a court ruling.

This action sends a strong message to the telecom sector. PTA has made it clear that it will not allow any operator to continue operations without meeting its financial and legal obligations. The regulator believes that timely payments are necessary to keep the telecom industry sustainable and ensure fair competition.

The cancellation of these licenses highlights the growing challenges faced by some LDI operators in Pakistan. With billions of rupees in unpaid dues, their future in the sector now looks uncertain.