SHC Suspends 14 Local Loop Licenses of Zong

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Sindh High Court has suspended recently issued local loop licenses to Zong (for all 14 regions), we have confirmed with officials.

SHC issued this interim order while hearing a petition which had plead that these local loop licenses issued to Zong — and other telecom operators – were granted with expired telecom policy.

A Pakistan Telecommunication Authority official confirmed ProPakistani about the suspension of Zong’s LL licenses.

Court also restrained authority from issuing any new LL licenses till the conclusion of the case.

It maybe recalled that Zong was recently issued Local Loop licenses for 14 telecom regions of Pakistan. Along with Zong several other players were also granted Local Loop licenses.

Telecom Policy, which was formulated in 2004, was set for renewal in 2009.

Old license holders want to get this telecom policy renewed before issuance of new licenses. This will buy these old operators more time till they see competition. Moreover, they also want the license fee to be revised (hiked) in the new telecom policy so that new entrants are charged higher to get into the business.

Industry experts are questioning if these petitioners – or even the court – has enough courage to question those concerned officials, who were responsible for renewing the telecom policy but they didn’t.

They said that people of Pakistan are deprived from technology due to negligence and incompetence of those who were responsible for renewing policy but they didn’t. They urged proper prosecution for such people who are now causing this nation a technological loss.

Tech reporter with over 10 years of experience, founder of ProPakistani.PK


  • Abu Khuzaima

    PTCL seems behind the move

  • Ahmad

    They all are (LDIs and LL) behind this.

  • Khurram ShahzAd

    So we will have to stuck with PTCL forever I guess.

  • Ejaz

    I believe the grievance is simple, in the absence of valid Telecom policy, PTA should abstain themselves for issuing licenses on 10 years old expired policy. I dont know why they are doing so but it is not defendable specially in court of law. First thing is first, GoP should issue new telecom policy that is pending since last 5 years, afterwards issue all new licenses as per new policy. I hope all of us remember that in 1991, first Cellular licenses where offered free of cost and than in year 1999 Ufone bought license in USD 10 Million and than later 4 years down the road, it was sold for USD 291 Million. This will give you an exact idea who will gain and who will loss if LL/LDI licenses are offered on old terms.

  • Faisal

    PTA you Suck, i know how aggressively Zong was planning to build on these Local Loop.
    Mean businessmen don’t want to see Pakistan grow.

    • Sohail

      They only want to offer GSM PRIs to their corporate customers under Local Loop license.