LDI firms licence renewal cases facing delays

ISLAMABAD: The issue of granting billions of rupees in financial concessions to telecom companies, coupled with the withdrawal of a related letter by the IT ministry, has led to delays in the licence renewal cases for these companies.

The Pakistan Telecommunication Authority (PTA) has informed the IT ministry about the delays in renewing LDI and FLL licenses and sought a final response to the correspondence related to these licenses.

According to the PTA, the deadline for a final response was July 30. As of the previous day, no response had been received from the IT ministry. The PTA’s letter indicates that this measure was taken to avoid any potential legal complications.

The PTA and IT ministry have exchanged correspondence regarding the renewal of fixed-line telecommunication licences (LDI, FLL) on April 22, May 13, July 11, July 12, July 18, July 22, and July 23. The PTA’s recent letter to the IT ministry noted that the latter withdrew the July 12 letter in its July 22 communication, which has resulted in delays in the renewal process. The IT ministry’s July 22 letter had stated that it was awaiting legal advice from the law ministry before proceeding further.

On July 23, 2024, the IT ministry had instructed the PTA to ensure that no action was taken based on the withdrawn July 12 letter. The PTA’s letter also highlighted that some licence holders have approached the Sindh High Court and Islamabad High Court, which have provided observations on the pending licence renewal requests. Consequently, the PTA had sought a response by July 30 (which has already passed) to avoid legal issues. The dispute over the billions of rupees in financial concessions granted to Long Distance International (LDI) companies has prompted the IT ministry to reorganise the steering committee to address the issue. The ministry’s latest notification empowers the steering committee to develop actionable proposals and recommendations for a peaceful, out-of-court resolution of the pending matters. The committee’s Terms of Reference (ToRs) include reviewing the formula and basis for calculating Access Promotion Charges (APC) as per PTA notifications, evaluating the application of late payment fees based on PTA rules or recommendations, and proposing a payment plan for the Universal Service Fund’s outstanding APC dues, specifically related to LDI license renewals. Additionally, the committee will determine the principal amount owed by LDI companies and the late payment surcharge, with the total principal amount at Rs24 billion and surcharge amounting to Rs54 billion.