Pakistan Telecommunication Authority (PTA) has renewed the license of the Pakistan Telecommunication Limited Company (PTCL) for 25 years, effective from January 1, 2021, onwards.
According to the official notification issued to Pakistan Stock Exchange (PSX), PTCL’s integrated license has been renewed for fixed-line service. There is no detail provided on the renewal fee by the company.
According to a statement issued by PTA, the license is technology-neutral and PTCL shall be able to provide all state-of-the-art telecom services under the renewed license except Mobile services across the country in 14 telecom regions.
In order to have enhanced quality of services (QoS) parameters, the renewed license entails conditions including a 5% annual increase of Next Generation Access Network (NGAN) connections and QoS service parameters as per international standards.
Conditions related to Consumer Protection, helpline services, commercial agreement obligations, and others have also been included in the license. The license fee shall comprise 0.66 % of the annual gross revenue of the licensee paid upfront whereas 0.5% shall be paid annual license fees and 2% for USF and R&D Fund.
For the already allocated WLL spectrum, the price has been linked with the USD to be deposited by PTCL every year. PTCL will be able to use Radio Frequency Spectrum till 2024, as per the existing allocation.
The licensee shall ensure consumer data privacy and network security. As per license conditions, PTA shall monitor service quality periodically.
Expressing his views, Naveed Khalid Butt, Group Chief Regulatory Officer, PTCL & Ufone, said,
We are happy to announce the news of our license renewal for the next 25 years with PTA. PTCL, being the national carrier, has always remained dedicated in its efforts to provide connectivity to the people and organizations across Pakistan. The company has gone through a massive transformation since its inception and is now focused to keep Pakistan digitally connected to better serve its customers, partners and stakeholders.”
With the renewal of its license, PTCL is geared up to take the challenge for taking Pakistan to the next level of growth and progress.
As the latest technology started emerging in the telecom sector in the world, the number of landline connections and users is going down across the country and Pakistan in the last decade.
PTCL, through its widespread network installation, is bringing the latest services for its users, including DSL broadband and smart TV services, and succeeded in retaining its base of fixed-line in the country despite intense competition with various operators and service providers.
In the three quarters of 2020, PTCL earned revenues of Rs. 7.5 billion from voice services of fixed-line. The company also earned an amount of Rs. 20.6 billion from broadband and IPTV services during the same period as per the financial report.
The landline phone service remains a major source of connectivity in many parts of the country, mainly government offices across the country.