PTA Drafts New Class License Framework for Tracking Services in Pakistan

The Pakistan Telecommunication Authority (PTA) has drafted a Class License framework for Tracking Services, aiming to regulate the growing sector that uses mobile and satellite technologies for asset and vehicle tracking across Pakistan.

According to the consultation document, the regulator has asked industry players, technology firms, and service providers to respond to six key policy questions covering jurisdiction, license duration, fee structure, and the definition of tracking services.

PTA Proposes New Class License Framework for Tracking Services in Pakistan

PTA is seeking views on whether the proposed license should remain nationwide in scope or whether regional or provincial authorizations should also be introduced, considering the operational nature of tracking services that depend on licensed mobile and satellite networks.

Another major proposal involves reducing the license term from 15 years to 10 years. The authority has asked stakeholders whether this period is suitable in view of investment recovery cycles, rapid technology evolution and regulatory flexibility.

The consultation also seeks feedback on whether the definition of “Tracking Services” in the draft license adequately covers all operational aspects of the industry.

Fee Structure

Under the proposed framework:

• Initial License Fee (ILF): PKR 500,000
• Annual License Fee (ALF): PKR 25,000 (fixed amount)

PTA has proposed replacing the traditional percentage-based annual fee model with a fixed fee, and stakeholders have been asked to comment on whether this approach is appropriate for the tracking services market.

Scope of License

The draft license allows operators to provide tracking services using:

• SIM resources from licensed cellular mobile operators or MVNOs, or
• Satellite connectivity from PTA-licensed satellite service providers, subject to prior regulatory approval

However, the license does not permit operators to establish public telecom networks, provide voice services, broadcast content, or offer wholesale bandwidth services.

Additionally, the framework mandates that tracking companies must sign Service Level Agreements (SLAs) with mobile or satellite providers. These agreements must be approved by PTA and include provisions for service scope, coverage area, pricing mechanisms, quality of service, dispute resolution and force majeure.

Data and Security Requirements

The proposed framework includes strict data and privacy conditions. Licensees will be required to:

• Obtain prior consent from end users before tracking
• Host and store tracking data within Pakistan
• Provide network access and operational information to PTA for monitoring and enforcement

The regulator also prohibits tracking service providers from operating outside Pakistan or transferring tracking data abroad.

Operational Obligations

Companies receiving the license must launch services within one year of the license’s effective date. The license term will be 10 years, with renewal possible subject to compliance with the Pakistan Telecommunication (Re-organization) Act 1996 and the Pakistan Telecommunication Rules 2000.

Operators will also be allowed to use Industrial, Scientific and Medical (ISM) radio bands on a non-interference basis, subject to compliance with regulations issued by the Frequency Allocation Board of Pakistan.