The Pakistan Telecommunication Authority (PTA) has raised alarms over an impending crisis in the nation’s telecom sector due to the possible non-renewal of Long Distance International (LDI) licenses. This warning was detailed in a document recently presented to the Parliament.
The PTA emphasized the severe risks that the non-renewal poses to Pakistan’s telecom infrastructure, potentially affecting mobile services, internet connectivity, and banking operations across the country.
Telecom Infrastructure at Risk
The document outlines the extensive reach of Pakistan’s telecom infrastructure, which includes 25,567 kilometers of long-haul optical fiber cable (OFC) and 18,337 kilometers of metro OFC. Major telecom operators, including Telenor, Jazz, and CMPak, heavily rely on leased networks from companies like Wateen Telecom, which operates 18,774 kilometers of long-haul OFC.
Multinet Pakistan and Worldcall also play crucial roles, with Multinet leasing out 6,993 kilometers of long-haul fiber and Worldcall contributing 1,800 kilometers of long-haul and 734 kilometers of metro OFC to the national grid.
Impact on Mobile, Internet, and Banking Services
The potential non-renewal of LDI licenses threatens to disrupt these networks significantly. PTA estimates that up to 50% of mobile traffic could be impacted, leading to the shutdown of numerous mobile towers. Additionally, around 10% of internet traffic and 40% of ATM banking services could face interruptions, along with disruptions to corporate internet services.
Satellite services, essential for communication in remote areas and critical banking operations, are also at risk. Companies like Telecard, Multinet, Wateen, Redtone, and Dancom, which operate key satellite hubs, could see their services compromised if LDI licenses are not renewed. This would affect both mobile companies and government departments that depend on these satellite links.
International Communication Threatened
In the realm of international communication, the nine LDI operators currently handle 21% of Pakistan’s incoming voice traffic. The failure to renew their licenses could force a rerouting of this traffic, leading to service degradation, increased strain on remaining operators, and potential interruptions in international communications.
Cross-Border Connectivity in Jeopardy
The document also underscores the importance of cross-border telecom links maintained by Multinet Pakistan and Wateen Telecom, which have critical OFC, microwave, and fiber connections with Afghanistan. These links are vital for international data transit, and their disruption could lead to significant connectivity issues for Afghan operators relying on them.
Financial Disputes Behind License Issues
The PTA’s decision to withhold license renewals stems from significant outstanding dues. LDI companies reportedly owe Rs. 24 billion in Universal Service Fund (USF) charges, while telecom operators face Rs. 54 billion in late payment surcharges.
With several LDI licenses already expired and more set to lapse soon, the situation remains tense. Efforts by the IT Ministry’s steering committee to negotiate an out-of-court settlement have so far been unsuccessful, leading several companies to pursue legal action in hopes of continuing their services after their licenses expire.
