LDI licence renewal delays to disrupt cellphone network

ISLAMABAD: The Senate Standing Committee on Information Technology and Telecommunication was informed on Monday that the renewal of Long Distance and International (LDI) licences might impact operations and result in significant losses.

During a meeting at the Parliamentary Lodges, chaired by Senator Palwasha Mohammad Zai Khan on Monday, the Pakistan Telecommunication Authority (PTA) chairman briefed the committee on issues related to the renewal of LDI and Fixed Local Loop (FLL) licences. He reported that the licence renewal issue primarily affects four companies, including Wateen, which has an extensive fibre optic infrastructure spanning 24 cities, primarily in Balochistan and interior Sindh. Wateen is also connected to 44 banks and NADRA.

Although a committee was formed to address the licence renewal issue, it has been unable to resolve the matter. Wateen’s license expired in July 2024, but the company got a stay. The committee chairperson stressed that failure to renew these licences could result in substantial losses.

Senator Palwasha also raised concern about the potential impact on the network if these companies’ licences were not renewed. The PTA officials explained that suspending these companies’ operations would significantly disrupt the network, and it would take considerable time to restore services. They also mentioned that the PTCL cannot fully compensate for the gap left by these companies if their operations are halted.

Regarding the payment required from LDI companies, the secretary of the Ministry of Information Technology and Telecommunication proposed that the vacation of stay orders is crucial for resolving the matter. He also emphasised that a policy directive from the federal government is necessary to prevent such issues in the future.

The chairperson raised concern about the lack of accountability regarding the former secretary, specifically inquiring about a letter issued in May 2024, in which a policy directive was issued by the ministry without obtaining the cabinet’s approval. She sought a list of individuals responsible for overseeing the matter and questioned if the actions taken were within lawful authority.

Additionally, the ministry’s secretary briefed the committee on the composition of the PTCL Board, highlighting that, in line with the federal government’s directives, the remuneration for government officials appointed to the boards of companies is capped at Rs1 million per annum for all such appointments.

During the meeting, Senator Humayun Mohammad raised a question regarding the blocking of X (formerly known as Twitter). In response, the PTA chairman said that X is widely accessed globally through VPNs, but warned that free VPNs could pose security risks.

When Senator Humayun further questioned the legality of using VPNs to access X, officials from the interior ministry confirmed that it is illegal. The PTA officials said that efforts are underway to register VPNs, with over 20,000 already registered.

The committee also discussed the qualifications and criteria for consultants and advisers, saying that these positions are filled on a contract basis. The special secretary of the Establishment Division presented details of the hiring of the secretary of the it ministry from the private sector on a contract basis. She informed the committee about the selection process, including the review and scrutiny of candidates. The special secretary reported that a large pool of qualified applicants had applied, and 77 applications were reviewed by the scrutiny committee, resulting in 15 candidates being shortlisted. Senator Palwasha sought the full list of 77 applicants, along with the criteria used for selection, at the next meeting.