PTA vs. LDI Operators: License Renewals Hinge on Unpaid Dues

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The Minister In-charge of the Cabinet Division has clarified in a written response to the National Assembly that there is no ongoing dispute between the Pakistan Telecommunication Authority (PTA) and Long Distance & International (LDI) operators regarding Access Promotion Contribution (APC) charges for the period 2008–2010. The APC demands, he stated, were based on reported minutes and applicable rates at the time.

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However, several LDI operators, including Worldcall, Redtone, Telecard, Wisecom, and Multinet, have challenged PTA’s actions in court. These disputes involve issues like the validity of PTA notifications and permissible discount ranges. While the Supreme Court has resolved some of these matters, others remain pending in various legal forums.

The controversy traces back to allegations of misapplied APC rates, significantly impacting the telecom sector. PTA’s refusal to renew licenses of operators with unpaid dues—amounting to Rs. 78.6 billion, including Rs. 24.1 billion in principal and Rs. 54.5 billion in late fees—has added to the tension. Of 21 LDI operators, 13 were implicated in the dispute.

Four operators have cleared their dues and secured license renewals, while others are operating under court orders. These operators, who collectively control 90% of the market, play a pivotal role in providing long-distance and international telecom services.

The PTA insists that unpaid dues must be resolved before any renewals. As licenses issued in 2004 expire, concerns mount over potential disruptions to Pakistan’s telecom ecosystem, including mobile services and banking operations.

TaazaTaren
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