In a landmark decision, the Islamabad High Court has ordered China Mobile Pakistan Limited (CMPak), the parent company of Zong, to vacate the 1800 MHz spectrum band due to unauthorized use. The court has declared CMPak’s use of the 1800 MHz spectrum illegal. Additionally, the ruling imposes a substantial financial penalty, marking a pivotal moment in Pakistan’s telecom industry.
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The court’s decision stems from writ petitions No. 3626/2019 and No. 3458/2020, as well as a first appeal against order No. 133/2020. CMPak has been instructed to immediately vacate the spectrum band, and a significant penalty has been levied against the company, calculated at USD 29.5 million per MHz over 15 years, along with other applicable fines.
This ruling is expected to have significant repercussions for the telecom sector in Pakistan, setting a precedent for all telecom companies using unauthorized spectrum. The financial burden imposed by the Islamabad High Court will severely impact CMPak’s operations and overall financial health. Stakeholders across the industry are closely monitoring the situation. The Pakistan Telecommunication Authority (PTA) has accepted the verdict, emphasizing its commitment to maintaining fair competition within the telecom sector. However, China Mobile Pakistan Limited is expected to challenge the ruling through an appeal due to the potential impacts on its business.
The outcome of this case is likely to shape the regulatory landscape of Pakistan’s telecom industry in the years to come. It highlights the importance of adhering to licensing agreements and the serious consequences of non-compliance. As the situation unfolds, industry experts will be keen to observe how this ruling influences future cases and the operations of other telecom companies in the region.
