PTA Withdraws its Decision of Suspending LDI Licenses

The Pakistan Telecommunication Authority (PTA) issued orders today to revert the license suspension notices of 3 LDI Operators issued by the authority on 30 June 2011, citing the Sindh High court stay orders granted to Redtone, Worldcall and Multinet, said a statement sent to us by LDI consortium.

Statement said that PTA, in it’s today notice, directed all  of the aggrieved operators be restored immediately.

Check below one of such letter sent by PTA to restore World Call’s License:

The press statement further focuses on the issue of grey traffic and the role of PTA. It says, real question for the PTA is, what it is doing to stop the menace of illegal gateway exchanges which are causing losses estimated to be Rs. 40 Billion (and growing) to the national exchequer?

Statement indicates that instead of addressing the danger of illegal gateway exchanges, PTA has recently taken an aggressive stance against the licensed LDI industry who individually filed challenges in the courts of Sindh and Punjab against certain fixed levy elements in the regulations.

Normally, the rates licensed LDI operators charge per international incoming minute contains provision for the fixed levy as determined by the regulator; however, the PTA’s failure to put a stop to illegal gateway exchanges results in undercutting any ‘official’ rate, stealing traffic from licensed operators.

Citing sources the statement said that the licensed operators therefore reduce prices to match the market rate driven by the illegal gateways, which operate from the shadows with impunity and are immune to the fixed levy of the PTA. The lower rates make the fixed levy unaffordable for the licensed operators and despite repeated requests by the industry to change or even eliminate the fixed levy regime; the PTA has dragged its feet. Instead, to hide their own incompetence, the PTA insists licensed operators pay extortionist levels of the fixed levy, which the licensed operators cannot afford.

  • can you explain what is an “illegal gateway” and how they work and how they result in losses for PTA

  • PTA is doing nothing for Pakistan they should bring and allowed the 3G services and also lower the incoming telephone calls to Pak so that the Gray will disapear its self , to call Pak from Abroad is too much expansive so that pplz use Gray , PTA pplz just enjoying free telephone for family and friends from the operators .

  • PTA is non professional that doesnt know what to do to facilitate operators and investors. Why PTA is putting restrictions on operators to limit the use of 2.48GHz ISM licensed free band within 1Km?

    I dont know why is it so that PTA takes a pre-mature decision and then has to back off.

    Same is the case with 2.4GHz ISM Band, from last 20 years license operators have been installing point to point and point to multipoint 2.4Ghz Radios, I still remember when they call those radios by the brand name Cylink, with maximum 28dBi Output power often hooked with a 24dBi Antenna. It used to cover a distance of more than 20 Kms.

    Today PTA is issuing deadlines to operators to remove those links and to restrict the use for indoors only. Why PTA is doing so? I think to facilitate those operators who have 3.5GHZ band,- As per Braodband Policy the 3.5GHz was actually offered to deliver Wireless Local Loop for VOICE and keeping in mind VOICE only slots of 5MHz of 3.5GHz Band has been put on auction, unfortunately WLL for voice didn’t gear up and few operators bought bulk slots of 5MHz to deliver DATA Services, but the DATA services has already been delivered via 2.4GHz at a very cost effective price.

    Now how these operators who have spent millions in acquiring 3.5Ghz band will sell their services against cost effective 2.4Ghz Free band??? Okay lets tell PTA to order all other operators to limit the use of 2.4Ghz for indoors only!

    What a pathetic joke!!!

    [Comment Edited]

  • The PTA should follow its mandate and stop calling alternative to LDI voip exchanges “illegal”. PTA is against its mandate to restrict services and cause more charges to the consumer. The PTA should facilitate instead of restrict so the charges can be lowered to the consumer. They are going against the mandate to increase charges with their restrictive policies. Before PTA there was no license required to make an ISP or a VoIP. Also VoiP is a data based service not a switched service. The PTCL only had a license for a switched telephone network. There was no monoploy in the X.25, WAN, ISP, Data, XoIP, VoIP, Data, IP, TCP or any other protocol other than switched voice. The PTA has “illegally” restricted the services from other commercial for profit providers to lace the pockets of a few.
    Here is the text of their act on which the PTA is based.

    4. Functions of the Authority.-(1) The Authority shall-
    (a) regulate the establishment, operation and maintenance of telecommunication systems and
    the provision of telecommunication services in Pakistan.
    (b) receive and expeditiously dispose of applications for the use of radio-frequency spectrum;
    (c ) promote and protect the interests of users of telecommunication services in Pakistan;
    (d) promote the availability of a wide range of high quality, efficient, cost effective and
    competitive telecommunication services throughout Pakistan;
    (e) promote rapid modernization of telecommunication systems and telecommunication
    (f) investigate and adjudicate on complaints and other clams made against licensees arising out
    of alleged contraventions of the provisions of this Act, the rules made and licences issued
    thereunder and take action accordingly.
    (g) make recommendations to the Federal Government on policies with respect to international
    telecommunications, provision of support for participation in international meetings and
    agreements to be executed in relation to the routing of international traffic and accounting
    settlements; and
    (h) perform such other functions as the Federal Government may, from time to time, assign to

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