PTA Responds to National Assembly Committee on LDI License Renewal Amid Outstanding Dues Dispute

The Pakistan Telecommunication Authority (PTA) has submitted its response to the National Assembly Standing Committee on IT & Telecom regarding the renewal status of the Long-Distance and International (LDI) license. The issue has been at the centre of a prolonged legal and financial dispute involving telecom operators, outstanding payments, and regulatory hurdles.

Background of the Issue

The dispute over LDI license renewals dates back several years, primarily revolving around the non-payment of Access Promotion Contribution (APC) for the Universal Service Fund (USF). Several LDI operators have contested the payment structure, arguing against the financial demands imposed by the PTA. These unpaid dues have stalled the renewal of multiple LDI licenses, triggering legal battles and creating industry uncertainty.

In a key ruling on November 27, 2024, the Sindh High Court (SHC) directed that the request for LDI license renewal must be determined by the PTA. The court also ruled that no coercive action should be taken against the applicants until the matter is resolved, effectively preventing the PTA from blocking services while the dispute remains unsettled.

See also: Senate Standing Committee on IT & Telecom Reviews PTAโ€™s LDI License Renewals

Ongoing Developments

PTA has been addressing the issue of Rs. 78 billion owed by LDI telecom companies, with cases pending in courts. PTA Chairman outlined three possible options for recovering these dues: depositing the total amount in an escrow account, allowing payments in installments, or suspending the licenses of non-compliant companies. However, suspending licenses could significantly impact Pakistanโ€™s financial sector, as 50% of ATM services rely on LDI infrastructure.

The PTA Chairman revealed that five companies are willing to pay in installments, while others remain in dispute. The principal amount owed stands at Rs. 24 billion, with late payment surcharges exceeding Rs. 50 billion. Barrister Gauhar emphasized that installment-based recovery should be the last resort, as these companies earn in dollars and should not be treated lightly.

Meanwhile, discussions in the National Assembly raised concerns about the delayed establishment of the Telecom Tribunal, which is yet to become operational. The Chairman of the Standing Committee has requested a report on the tribunalโ€™s status in the next meeting to determine a structured resolution for the ongoing dispute.

Additionally, the Ministry of IT & Telecom (MoITT) has intervened, issuing a letter on January 28, 2025, supporting a balanced approach to the dispute. The Ministry stated that it backs the facilitation of LDI licensees in settling dues while ensuring that license renewals proceed fairly.

Current Status and PTAโ€™s Position

As of February 2025, PTA has confirmed that hearings for the renewal of LDI licenses are being scheduled in compliance with the SHC ruling and the Ministryโ€™s recommendations. The PTA has also requested MoIT&T to finalize decisions on outstanding APC dues by December 13, 2024, in line with previous directives.

The fate of several telecom operators now hinges on these scheduled hearings. If unresolved, the financial burden on the industry could escalate further, potentially impacting international telecom services and regulatory stability.

Way Forward

The next steps involve a series of hearings where PTA will evaluate renewal requests based on payment compliance. With the SHCโ€™s directive in place, the authorities are unlikely to suspend or revoke any licenses until they fully adjudicate the matter.

If authorities resolve the dispute over LDI license renewals and outstanding dues, end users and Pakistanโ€™s economy could benefit significantly. For consumers, improved regulatory clarity and renewed licenses would ensure uninterrupted international call services, better connectivity, and potentially lower costs as telecom operators regain stability and confidence to invest in infrastructure.

Moreover, resolving the dispute would encourage healthy competition among LDI operators, leading to better service quality and innovation in Pakistanโ€™s telecom sector. On the economic front, clearing outstanding dues would provide a financial boost to the USF, which is crucial for expanding digital connectivity to underserved areas. A stable and well-regulated LDI sector could also attract foreign investment, strengthen Pakistanโ€™s digital ecosystem, and contribute to GDP growth by enhancing e-commerce, remote work opportunities, and IT exports. Ultimately, settling the issue would reinforce investor confidence, promote economic stability, and accelerate the countryโ€™s digital transformation.

PTA Taxes Portal

Find PTA Taxes on All Phones on a Single Page using the PhoneWorld PTA Taxes Portal

Explore NowFollow us on Google News!

Onsa Mustafa

Onsa is a Software Engineer and a tech blogger who focuses on providing the latest information regarding the innovations happening in the IT world. She likes reading, photography, travelling and exploring nature.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
>