The Pakistan Telecommunication Authority (PTA) has recently denied media reports suggesting the potential closure of automated teller machines (ATM) and a telecommunication blackout in the country due to the non-renewal of long-distance international (LDI) licences. The LDI operators, responsible for providing international incoming and outgoing telecom call services, are facing a crucial moment as most of their licences are set to expire in July-August 2024.
Among the 10 operators whose licences are expiring are Worldcall, Redtone, ADG-LDI, Telecard, Dancom, Wisecomm, Circlenet, Wateen, 4B-Gentel, and Multinet. These operators have reportedly not paid the principal overdue for the Universal Service Fund (USF) in their 20-year licence contracts, amounting to a total outstanding principal of Rs24 billion. The PTA has urged them to settle their dues in order to renew their licences for the next 20 years, prompting the Ministry of Information Technology and Telecommunications to reconstitute a steering committee to address the issue.
Media reports earlier suggested that the non-renewal of LDI licences could have a significant impact on the country’s telecom sector. According to documents presented in a meeting, the potential consequences include disruptions to service quality, business operations, and the broader economy. The PTA warned that mobile traffic, internet traffic, banking services, ATM networks, corporate intranets, and international communication services could all be affected if the licences are not renewed.
However, the PTA has issued a statement refuting these claims, labeling them as „fake news.“ The authority clarified that there is currently no issue of non-availability or closure of LDI networks that would impact the IT or financial sector, including ATM networks. It emphasized that the operations of the expired LDI licensees have not been suspended or shut down.
This development comes at a time when the Telecom Operators Association has sought the intervention of Prime Minister Shehbaz Sharif to address recent disruptions in the internet that could cost the national economy billions of rupees. Internet users across Pakistan have reported significant drops in speed and disruptions to social media platforms, leading to concerns from the business community and internet service providers. The government has attributed these issues to VPNs and a fault in submarine cables.
In their letter to the Prime Minister, the telecom operators highlighted the potential economic repercussions of the internet slowdown, estimating a loss of almost Rs12 billion annually. They emphasized the need for immediate identification and rectification of the issues to prevent long-lasting economic impacts on the country.
Overall, the situation surrounding the non-renewal of LDI licences and recent disruptions in the internet highlights the importance of a stable and reliable telecommunications infrastructure for Pakistan’s economy and society. It remains to be seen how the government and telecom operators will address these challenges to ensure uninterrupted services for the public.
