Huge Network Disruption Likely Without Renewal of LDI Licenses: PTA

Pakistan Telecommunication Authority (PTA) on Monday warned the Senate Standing Committee on IT and Telecom of massive disruptions and issues in Pakistan’s network if licenses of Long Distance International (LDI) companies are not renewed. PTA officials said it would take a lot of time to restore the network if operations of foreign companies are stopped due to non-payment of outstanding dues. They said even the Pakistan Telecommunication Company Limited (PTCL) doesn’t have enough capacity to manage the resulting shortfall. Chairman PTA Major General (R) Hafeezur Rehman briefed the committee that five LDI companies were willing to pay their dues, while several others had filed legal challenges. The licenses for these companies were set to expire between July and August, with approximately 15 cases currently pending in court. Chairman PTA acknowledged that back in 2020, companies were allowed to pay their dues in installments. However, the same relief cannot be extended this year. The committee addressed the Rs. 54 billion exemption sought by LDI companies. It was discussed that the former IT Secretary had issued a policy directive on the matter, but IT Ministry officials were against it, claiming it was not within the former secretary’s authority. The Senate committee chairman questioned the legal standing of their stance, to which the ministry officials said that the ex-secretary’s name had surfaced in many corruption cases. One senator warned that halting LDI company operations could lead to significant network disruptions. PTA officials confirmed that if operations were suspended, network restoration would take time, as PTCL alone does not have the required capacity to manage the shortfall. The committee called for a clear policy direction from the federal government in order to avoid potential losses. Committee members urged that a decision must be made on which companies will be licensed and at what price. They further advised PTA to strengthen their legal team, as ongoing stay orders have delayed proceedings. If the court rulings are not resolved soon, licenses could be canceled and further complicate the situation.