Telenor Pakistan, one of the leading telecom operators in the country, finds itself in hot waters as the national telecom regulator, Pakistan Telecommunication Authority (PTA), recently concluded a Show Cause Notice (SCN) hearing against the company for below-par network quality service in the Chitral region. Despite reporting a commendable 10% revenue growth in the second quarter, the telecom operator is grappling with issues concerning its network services in Chitral.
Read More: Telenor Pakistan releases Q2 results, posts 10% revenue growth
In response to media reports on the matter, a spokesperson from Telenor acknowledged the challenges faced but clarified that the difficulties were mainly due to the rugged terrain, unreliable power availability, limited transmission media, and import restrictions imposed by the State Bank.
Chitral, being an essential market for Telenor Pakistan, holds significance as the telecom operator was among the first to bring connectivity to the region. The company assured its customers that it is actively collaborating with PTA to address the issues promptly.
The telecom regulator had initiated proceedings against Telenor under the provisions of the Telecom Act 1996, leading to the issuance of a Show Cause Notice on 10th March 2023. In response, Telenor submitted its reply to PTA on 10th April 2023. Subsequently, the hearing took place on 5th June 2023, and the national telecom regulator is currently in the process of issuing an enforcement order to Telenor regarding the matter.
During the investigation, a joint survey was conducted in the Chitral area, wherein Telenor participated. The survey results indicated that all key performance indicators (KPIs) were within the licensed threshold, except for 4G data throughput. However, an independent verification survey conducted between 27th February and 2nd March at various locations in Chitral also confirmed that Telenor failed to meet the licensed threshold at all five locations. This outcome prompted the authority to initiate proceedings against the operator. Interestingly, the same survey revealed that the network services provided by another major operator in the area showed significant improvement.
In a separate development, rumors have surfaced that the PTCL group is expressing interest in acquiring a substantial stake in Telenor Pakistan. However, official statements from both companies regarding any such discussions have not been made public yet.
