Starlink to Deposit $10.6 Million for PTA License to Start Operations in Pakistan

SpaceXโ€™s Starlink is set to enter Pakistanโ€™s telecom market but must first fulfill financial and regulatory requirements. The satellite internet provider, owned by billionaire Elon Musk, is required to pay $1.6 million in licensing fees and guarantees to secure its operational approval from the Pakistan Telecommunication Authority (PTA).

Sources confirm that Starlink must deposit $640,000 in licensing fees and provide a $10 million (or equivalent in PKR) bank guarantee. A company representative visited PTA headquarters on Tuesday and briefed officials about the financial arrangements.

Licensing and Financial Commitments

Starlink has applied for 14 Local Loop (LL) licenses and one Long Distance International (LDI) license. The LDI license will allow the company to provide international communication services, while the LL licenses cover domestic connectivity across different regions.

To obtain these licenses, Starlink must pay:

  • $500 as an application fee.
  • $10,000 per region for each LL license.
  • $500,000 for the LDI license.
  • Additional charges for radio frequency spectrum allocation.

The company must also submit a $10 million bank guarantee in favor of PTA.

Regulatory Conditions

Apart from financial obligations, Starlink must meet PTAโ€™s regulatory requirements, including:

  • Company incorporation documents and bylaws.
  • List of directors, disclosing ties to other telecom operators.
  • Shareholder details, including ownership structure.
  • Affiliate disclosures, if any shareholder is linked to another telecom licensee.
  • Identity documents of directors and authorized representatives.

Legal undertakings, ensuring that the company and its directors have never been declared insolvent, the directors have no major criminal convictions, and the company is not a PTA defaulter.

Approval Process

Starlinkโ€™s final approval depends on how quickly it meets the required payments and documentation. Once completed, PTA will issue the licenses, allowing the company to officially launch its services.

Starlinkโ€™s entry could transform Pakistanโ€™s internet landscape, particularly in underserved regions. However, its launch hinges on fulfilling PTAโ€™s licensing conditions.

Also read:

Starlink Coming to Pakistan: Regulatory Approval Expected Soon

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