District-level mobile network companies to be established in Pakistan, major decision of PTA – Business & Economy

The Pakistan Telecommunication Authority (PTA) is all set to amend the licensed area and jurisdiction of Data Class Value Added Services (CVAS) across the country from province to district level. It is expected to generate additional income of around Rs 3 billion and thousands of jobs by expanding internet connectivity to small towns and villages across the country.

According to the Business Recorder, government sources have revealed that around 5,000 people have expressed interest in getting the data CVAS license at the district level, which is relatively easy to provide internet services and increase broadband penetration in the country. There is an entry-level license.

Over the course of two decades, significant changes have taken place in the market dynamics and technological landscape, changing the environment profoundly, sources said. In these developments, the current scope of the DataCVAS license has not been adapted to advanced technological changes. Therefore, revision of data CVAS license is mandatory for provision of internet services in the country.

Additionally, startups, entrepreneurs and young technical graduates show keen interest in acquiring small area licenses with cable TV operators and standard internet using their existing OFC infrastructure set up under Pemra’s cable TV license. Interested in offering services.

However, under the prevailing regulatory framework, they are required to obtain an FLL license from the PTA for such services.

However, they are reluctant to obtain FLL licenses due to the mandatory requirement to provide voice services and the associated responsibilities associated with FLL licenses.

As per the current regime the jurisdiction or licensed area is nationwide and provincial while it is proposed to hold only one district level CVAS license by a company.

Additionally, the license period is currently 15 years which is proposed to be reduced to 10 years.

The application processing fee is currently Rs 5,500 and is proposed to be Rs 20,000 in the revised system.

The initial license fee is Rs 300,000 across the country and Rs 100,000 or Rs 50,000 for the province and is proposed to be Rs 300,000.

The annual license fee (ALF) is currently 0.5 per cent of the adjusted gross income while under the revised system it will be Rs 100,000 for the first year, with an increase of 10 per cent for each subsequent year.

Under this license the licensee is not permitted to provide telecommunication services outside the district, except as specified in the provision, to establish, operate or maintain a public switched telecommunication network, or telecommunication infrastructure, to provide telecommunication services outside Pakistan. Interconnection of the licensee’s telecommunication system to the telecommunication system of the licensee, provision of wholesale bandwidth services directly or indirectly to any person or entity including any other licensee for the purpose of further resale, voice origination, transmission and Interception and/or termination, connection-oriented switching without specific approval from the Authority, distribution of radio or television programming through cable television transmission system, except under separate license or appropriate authorization from relevant authority, i.e. PEMRA, radio or television programming. Broadcasting, except with a separate license or appropriate authorization from the relevant authority, i.e. PEMRA, establishment, maintenance or operation of a telecommunication system for providing any telecommunication service not authorized in this license or by the Authority. Limited from time to time, actions that may threaten Pakistan’s security, beliefs and heritage and its relations with its allies around the world will not be permitted.