Telecom Operators Owe Rs. 26 billion to USF: CEO

USFTelecom operators owed Rs. 26 billion to Universal Service Fund (USF) for Access Promotion Contribution (APC), the fund’s Chief Executive Officer (CEO) Riaz Asher Siddiqui revealed yesterday while briefing a sub-committee of the National Assembly’s committee on information technology.

It maybe recalled that mobile cellular operators pay a set amount of APC for every international call to USF, plus 1.5 percent of telco’s yearly revenues also go to USF.

As per Section 3 (4) of the USF rules, 2007, Pakistan Telecommunication Authority (PTA) monitors and enforces the obligations of the telecom operators to make the USF contributions in a timely and proper manner. Therefore, PTA acts as an agent on behalf of the Ministry of Information Technology (IT) to book receivables and enforce the payment of contributions due from the operators.

Currently, According to Mr. Riaz Asher Siddiqui, outstanding amounts for selected telecom operators is as following:

  • PTCL: Rs 183.39 million,
  • Worldcall: Rs 1.67 billion,
  • Red Tone Rs 3.96 billion,
  • ADG LDI Rs 383.93 million,
  • Wi Tribe Rs 0.35 million
  • Wateen Rs 1.92 billion
  • Telenor Rs 5.47 million.

According to documents provided to the committee, the main reason for the increase in amount of receivables, especially in the case of APC, was because most of the contributors had gone to courts regarding APC contributions, challenging the APC regime. PTA, being the main defendant of all allegations, “is now in litigation against such operators”.

The committee also recommended the CEO of USF to give a report detailing outstanding amount owed by fixed line operators as well as cellular operators, besides showing how much money had been spent under the USF.

  • What is going on with telecom operates? Tax evasions of billions , now funds non payments .. looks like they are just making profits and that’s it …

    • I’ve read in detail about these cases. Because of PTA setting costs as it did, our telecom operators were forced to sell at or close to breakeven price, and PTA STILL demanded their tax! If it was PTA’s fault they had to sell incoming minutes so cheap, then PTA should have suspended their tax like all other countries have done.

      • This is not an income tax. Stop confusing the situation and misleading people. APC is a payment. The first 3 cents goes to USF. Everything else is profit. If there is no profit, don’t do the business.

        USF payment is the basic cost just like the cost of license or royalty payment or even general sales tax. If a telco cannot make a profit like Warid should it not pay 19.5% GST?

        Feed this crap to someone else.
        APC for USF is owed and must be collected.
        Supreme court must take notice.

  • Also interesting to note the big operators owe relatively small amounts than the
    chores like Multinet and Redtone whose business model is to make money through avoidance of APC for USF. So much for the argument that it is some form of income tax which should only be paid if you can make profit. How come Telenor and PTCL outstanding payment 20 times less than Mutlinet and Redtone??

    Compare outstandings of good reputation companies
    PTCL: Rs 183.39 million
    Telenor Rs 5.47 million
    Wi Tribe Rs 0.35 million

    to bad reputation companies
    Multinet Rs 4.5Bn
    Red Tone Rs 3.96 billion
    Worldcall: Rs 1.67 billion

    • Sir can you please tell me who said these companies to sell @ 1.25cent if apc is 1.25cent? now they all decided to go into consortium to settle all these matters than ccp and other jerks come into action that this is not right way so please tell me what is the right way and those ppls who were using DID of brain and other companies like this they legaly defending the case Allah bless this only surviving industry of pakistan i think this is end of telecom industry now

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