Govt Stops Army Heritage Foundation From Charging Ridiculous ROW Fees From Nayatel

Nayatel has won its case against the Army Heritage Foundation (AHF) over Right of Way (ROW) charges. The Cabinet Division has issued an order in favor of Nayatel, mandating that ROW charges be standardized and applied uniformly. The dispute centered on the fees imposed by the AHF for Nayatel’s infrastructure deployment in Ayub National Park. Nayatel and AHF entered into an agreement in 2018, under which Nayatel paid Rs. 25,000 per month to AHF, along with providing complimentary and subsidized internet connections. However, after the agreement expired on February 28, 2021, AHF demanded a tenfold increase in the ROW fee to Rs. 250,000 per month, along with 11 additional free connections and free future connections. Additionally, AHF requested the laying of optical fiber cables and the installation of free CCTV cameras. Faced with these demands and threats of network dismantling by AHF, Nayatel approached the Lahore High Court, Rawalpindi Bench. The court restrained AHF from taking any coercive measures. Notably, Nayatel continued paying the ROW fee till February 2024, which was already higher than the approved rates for Cantonment Boards. Notably, Nayatel has paid the ROW fee to AHF till February 2024. The fee paid is actually higher than the approved ROW rates for Cantonment Boards decided by the federal government. The Cabinet Secretary noted that AHF has no statutory right to charge fees beyond reasonable administrative expenses and must adhere to the Telecom Act and ROW Policy Directive, which govern telecom operations in Pakistan. AHF’s demand of Rs. 250,000 per month was deemed exorbitant and unjustifiable. The Cabinet Division order, referencing a previous notification from December 22, 2021, determined that the fee for ROW through Ayub National Park should be the same as that for the Chaklala Cantonment Board area. This standardization ensures fair and consistent application of ROW charges, the order added. The ruling has set a precedent for future ROW-related disputes and will definitely help eliminate arbitrary fee structures of aggressive entities that try to hinder infrastructure development.