PTA Warns of Major Network Disruptions if LDI Licenses Aren't Renewed

PTA Warns of Major Network Disruptions if LDI Licenses Aren’t Renewed

The Pakistan Telecommunication Authority (PTA) has cautioned the Senate Standing Committee on IT and Telecom about potential massive disruptions in the country’s network if the licenses of Long Distance International (LDI) companies are not renewed.

During a briefing on Monday, PTA officials highlighted the significant time required to restore network operations if foreign companies are forced to halt due to unpaid dues. They noted that the Pakistan Telecommunication Company Limited (PTCL) lacks the capacity to handle the resulting shortfall alone.

Chairman PTA, Major General (R) Hafeezur Rehman, informed the committee that while five LDI companies are prepared to settle their dues, several others have initiated legal challenges. The licenses for these companies were due to expire between July and August, with around 15 cases currently pending in court. He also mentioned that although companies were allowed to pay their dues in installments back in 2020, such relief cannot be extended this year.

The committee discussed the Rs. 54 billion exemption sought by LDI companies. It was revealed that a policy directive had been issued by the former IT Secretary, but IT Ministry officials opposed it, arguing it was beyond the former secretary’s authority.

The Senate committee chairman questioned the legal basis of this stance, to which ministry officials responded that the ex-secretary’s name had been linked to several corruption cases.

A senator warned that stopping LDI company operations could lead to significant network disruptions. PTA officials confirmed that if operations were suspended, restoring the network would take time, as PTCL alone cannot manage the shortfall.

The committee called for a clear policy direction from the federal government to prevent potential losses. Members emphasized the need for a decision on which companies will be licensed and at what cost.

They also advised the PTA to strengthen its legal team, as ongoing stay orders have delayed proceedings. If court rulings are not resolved soon, licenses could be canceled, further complicating the situation.