ISLAMABAD: Pakistan telecom market is currently navigating a transformed business landscape characterised by various challenges including currency devaluation and high interest rate, exerting pressure on capital and operating costs and impacting the business cases and profit margins of the industry, said Pakistan Telecommunication Authority (PTA).
On account of these challenges, the Authority is contemplating upon revising Long Distance and International (LDI) license template and has started consultations with all stakeholders on the matter.
The authority under section 5 (2) (a) of the Pakistan Telecommunication (Re-organisation) Act, 1996 (the “Act”) is empowered to grant and renew licenses for any telecommunication system and any telecommunication service on payment of such fees as it may, from time to time specify.
In accordance with section 20 of the Act, no person shall establish, maintain or operate any telecommunication system or provide any telecommunication service unless he has obtained a license under the Act. Further, section 21 (4) (g) elaborates “Exclusive Power of the Authority to grant licenses”, that every license granted under the Act may contain obligations to provide telecommunication service to particular persons or areas to meet the minimum standards for quality and grade of services requirements. Furthermore, section 21 (4) (n) elaborates “Exclusive Power of the Authority to grant licenses”, that every license granted under the Act may contain conditions as to the security provided by a licensee to support the fulfilment of the licensee’s obligations in the license, and the realization on such security by the authority.
By virtue of mandate provided in the Act, the Authority in 2022 revised and issued updated LDI license template. The authority after carrying out consultation with all the stakeholders imposed roll out obligation in terms of deployment of 1500kms with submission of Performance Bank Guarantee (PBG).
The PTA stated that the telecom market in Pakistan is currently navigating a transformed business landscape characterized by various challenges. Considering multifarious financial implications with specific reference to: the currency devaluation which has also exerted pressure on capital
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