No Conflict with Telecom Operators Over Rs 78.6 Billion Dues Says Minister

The Minister In-charge of the Cabinet Division has denied any ongoing dispute between the Pakistan Telecommunication Authority (PTA) and Long Distance & International (LDI) operators concerning outstanding Access Promotion Contribution (APC) charges totaling Rs. 78.6 billion. In a written reply to the National Assembly, the minister clarified that the APC demands were based on reported minutes and applicable rates during the 2008 to 2010 period.

Some LDI operators have taken legal action against PTA’s decisions, disputing the legitimacy of notifications and permissible discount ranges, but the Supreme Court has addressed numerous challenges in this regard. However, some matters continue to await resolution in different legal venues. The PTA is diligently working on these cases to guarantee adherence to court orders and accelerate resolutions.

Multiple operators, such as Worldcall, Redtone, and Telecard, have commenced legal actions against the PTA. Nonetheless, the authority insists that there are no conflicts regarding APC overcharging, claiming that the legal matters arise from issues raised independently by the operators.

The controversy surrounding the APC traces its origins to claims of inappropriate rate applications that occurred between 2008 and 2010. The PTA has delayed the renewal of licenses for multiple operators, demanding the payment of overdue dues. A total of 21 licensees were identified, with 13 entangled in the ongoing dispute.

Reports indicate that nine operators are in debt to the tune of Rs. 78.6 billion, which includes Rs. 24.1 billion in principal and Rs. 54.5 billion in late fees. Four operators have successfully settled their outstanding payments and have had their licenses renewed, whereas others persist in their operations under judicial orders.

Industry Implications

As licenses issued in 2004 have recently expired, the renewal process has reignited tensions. The PTA emphasizes that operators are required to clear any outstanding dues prior to the renewal of their licenses. The operators in question dominate almost 90% of the long-distance and international telecom market, playing a crucial role in the telecommunications infrastructure of Pakistan.

The PTA’s refusal to renew licenses over unpaid dues has raised concerns about potential disruptions to Pakistan’s digital ecosystem, including mobile service reliability and banking operations. Industry stakeholders are keeping a vigilant eye on the situation, recognizing the essential function of these operators in sustaining telecommunication services across the country.