PTA warns Senate of severe network disruptions without LDI licence renewals

• Senator Palwasha Mohammad Zai Khan chairs Senate body meeting.
• PTA officials confirm PTCL alone cannot manage the shortfall.
• Say five LDI firms willing to pay dues, others went to court.
  

The Pakistan Telecommunication Authority (PTA) on Monday alerted the Senate Standing Committee on IT and Telecom about the imminent threat of severe network disruptions across Pakistan if the licences for Long Distance International (LDI) companies are not renewed at the earliest.

A meeting of the committee, chaired by Palwasha Mohammad Zai Khan, addressed the ongoing issues related to the renewal of LDI and Fixed Line Local Loop (FLL) licences, according to state-run APP.

The Pakistan Telecommunication Authority (PTA) chairman, Major General (retd) Hafeezur Rehman, briefed the committee on the matter, highlighting that the issue primarily affects four companies, including Wateen, which has an extensive fibre optic infrastructure across 24 cities, primarily in Balochistan and interior Sindh.

He said Wateen was also connected to 44 banks and Nadra, making its network critical to the country’s communications infrastructure.

Despite a committee being formed to resolve the licence renewal issue, no progress has been made so far.

Wateen’s licence expired in July 2024, but the company secured a stay order from the court, allowing it to continue operations. The committee chairperson said that failure to renew these licences could lead to significant losses, he added.

The PTA chief informed the meeting that five LDI companies were willing to pay their outstanding dues, while others have filed legal challenges.

The licences for these companies were set to expire between July and August, with around 15 cases currently pending in court. He also acknowledged that in 2020, companies were permitted to pay their dues in installments, but the same relief cannot be granted this year.

The committee discussed the Rs54 billion exemption sought by the LDI companies.

It was noted that the former IT secretary had issued a policy directive on the matter, which was opposed by officials from the Ministry of Information Technology and Telecommunication (MoITT), claiming the directive exceeded the secretary’s authority.

Senator Palwasha Mohammad Zai Khan raised concerns about the potential impact on the national network if these licences were not renewed.

Regarding the payments required from LDI companies, the Secretary MoITT Zarrar Hasham Khan suggested getting the stay orders vacated by the court to resolve the matter. The committee called for a clear policy directive from the federal government to prevent similar issues from arising in the future.

The chairperson also expressed concerns about the accountability of the former secretary of IT, specifically questioning a letter issued in May 2024, where a policy directive was made without Cabinet approval. 

She requested a list of individuals responsible for overseeing the matter and questioned whether the actions taken were within legal bounds.

The secretary of MoITT also detailed the meeting on the composition of the PTCL Board, noting that, per federal government directives, the remuneration for government officials on company boards is capped at Rs1 million annually.

The committee also discussed the qualifications and criteria for hiring consultants and advisors, with the secretary explaining that all such positions were filled on a contract basis.

The special secretary of the Establishment Division presented details about the hiring of the sitting MoITT secretary from the private sector.

 She informed the committee that 77 applications were scrutinised by a review committee, leading to 15 candidates being shortlisted.

Senator Palwasha requested that the criteria for shortlisting the candidates be presented in the next meeting.

A senator warned that suspending LDI company operations could lead to significant network disruptions. The PTA officials confirmed that PTCL alone cannot manage the shortfall, meaning network restoration would take time if operations were halted.

The committee urged the federal government to provide a clear policy direction to avoid further complications and potential losses. 

Members also recommended that PTA strengthen its legal team, as ongoing court stay orders have delayed proceedings. Without timely court rulings, license cancellations could further exacerbate the situation.