Unresolved License Disputes Threaten Telecom Infrastructure
Pakistan’s telecommunication sector is on the brink of a crisis due to unresolved disputes over license renewals and outstanding payments between the government and Long-Distance and International (LDI) operators. The Pakistan Telecommunication Authority (PTA) has raised alarms, warning that if these issues are not addressed, the nation’s telecom infrastructure could face severe consequences. The PTA has informed the Ministry of IT that failure to renew LDI licenses could disrupt up to 50% of mobile traffic, potentially leading to the shutdown of mobile towers and a significant 10% reduction in internet traffic.
Banking and Satellite Services Also at Risk
The potential fallout from this dispute extends beyond just mobile and internet services. The PTA has cautioned that as many as 40% of bank ATMs could go offline, creating significant disruptions for financial transactions. Additionally, satellite services, which play a crucial role in various sectors, might also face interruptions, further exacerbating the crisis. The dispute centers around Rs 76 billion owed by 10 LDI companies for Access Promotion Contribution (APC) and Universal Service Fund (USF) payments.
Potential National Communication Blackout
The stakes are high, as the failure to renew the LDI licenses could result in widespread disruptions to global mobile and internet connectivity. Remote areas and government offices are particularly vulnerable, with the risk of communication blackouts looming large. The PTA’s warning highlights the urgent need for the government and LDI operators to resolve these issues to prevent a nationwide telecommunications disaster.
