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Sindh High Court Imposes a Hold on Issuance of New LDI Licenses

By  | 09, Dec 2013 | 7 Comments

Pakistan Telecommunication Authority Sindh High Court Imposes a Hold on Issuance of New LDI Licenses

Sindh High Court has restrained the federal government from issuing Long Distance and International (LDI) licences under the obsolete telecom policy till further orders.

Justice Nadeem Akhtar, who headed the bench, passed the stay order on a private telephone operator’s petition challenging the notification issued by Pakistan Telecommunication Authority (PTA) for issuing LDI licences under the expired policy.

It maybe recalled that Telecom Policy was formulated in 2003 and was to be renewed after every five years, however, the policy is still not renewed since it got expired in 2008.

Telecom policy is a document that sets various standards regarding telecom services, including the fee of various licenses and spectrums.

The petitioners, Telecard Limited, Redtone Telecommunications and Multinet Pakistan, filed plea against Ministry of Information Technology secretary and the PTA, saying the PTA is set to auction new LDI licenses based on expired policy.

As per this expired policy, anybody – that meets certain criteria – could obtain LDI licenses on payment of the prescribed fee of $500,000.

Petitioners said that this fee is dirt low as per current market standards and hence government should be restrained from issuing new LDI licenses based on expired and out-dated policy and rates.

It merits mentioning here that ministry of information and technology was going to issue LDI licences to CMPak as it has issued a notification in this regard on November 12, 2013.

Petitioners added that the valuable asset of the country was being sold at throwaway prices which could cause billions of losses to the telecom sector.

The court was pleaded to declare the notification illegal and direct respondents to formulate new deregulating policy for telecom sector.

The bench restrained the federal government from issuing LDI licences under the old telecom policy as well as issued notice to respondents to file their comments by December 17.

This stay order will blow CMPak’s efforts to obtain new LDI license, for which it was struggling since its inception in 2007.

CMPak, the only cellular operator without LDI license, was earlier denied LDI license in 2007 due to Government of Pakistan’s agreement with Etisalat, according to which Pakistan could not issue any new telecom licenses till March 2013.

Via Express Tribune

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  • Telecomistan

    The petitioners are getting scared that their revenues from ICH will start to go down that is why they are crying about new licenses to be issued.

    The same petitioners owe billions in APC payments to the PTA and GoP and they should return this plundered wealth first. They have already lost several cases on APC regard.
    http://propakistani.pk/2012/11/02/telecom-operators-owe-rs-26-billion-to-usf-ceo/

    http://propakistani.pk/2009/04/13/pta-warns-ldis-to-pay-apc-or-their-international-incoming-will-be-blocked/

  • Mudassir Hussain Khan

    Its surprising …. if it is the plea that on expired policy, how PTA can issue Licenses/Spectrum ? ….. then there is a big threat for new 3 G Licenses …. There is same plea for 3 G licenses also exists that Telecom Policy 2003 is expired and PTA will not be able to issue 3 G Licenses … first of all Telecom Policy will be updated ….. !!!

    Mudassir
    Cell + 92 300 500 9693

    • 3G in Jeopardy

      very right sir. Looks like Telecard, Redtone and Multinet have jeopardized the 3G licensing process! Looks like we won’t get 3G in 2014.

    • Sohail

      We have a separate cellular policy for all cellular matter. its not linked with 2003 telecom deregulation policy which was mainly focusing on LDI and LL business. I am afraid, your concern is not right.

      • Not Right

        What ‘policy’ matter are you talking about. The policy was for all telecom licenses and why should LDI applicants suffers and foreign mobile companies benefit.

        Unfair.

      • Mudassir Hussain Khan

        Dear Sohail, u r right there is separate policy for Mobile, it was made on 28-01-2004 (since than which was also not updated/revised).

        Secondly, according to Mobile Policy: clause 4. Radio Spectrum …. it referred to Telecom De-Regulation Policy Clause 4.4 for Radio Spectrum ………….. (and the Telecom Policy is expired) … so indirectly spectrum part of Mobile Policy is also expired …..

        Thirdly, Mobile Policy, in different clauses it referred to the Telecom Policy, which is in-effective (according to above mentioned decision) …. so every thing is stuck … !!

  • Saeed

    how many more do we need?