The Auditor General of Pakistan (AGP) has detected a loss of around Rs. 61.95 billion due to unlawful usage of 4G services in AJK.
The audit report, on the accounts of Telecommunication Sector for Audit Year 2017-18 (a copy of the report is available with ProPakistani), recommended that the matter should be investigated for fact-finding and fixing of responsibility for the irregularity.
According to Section 6 of Pakistan Telecommunication (Re-organization) Act, 1996 the Authority in exercising its functions and powers under the Act, shall ensure that:
(a) rights of licensees are duly protected;
(b) all of its decisions and determinations are made promptly, in an open equitable, non-discriminatory, consistent and transparent manner; and
(c) fair competition in the telecommunication sector exists and is maintained.
Section 20 further states that no person shall establish maintain or operate any telecommunication system or provide any telecommunication services for which he has obtained a license under this Act.
During the audit it was observed that PTCL and SCO launched 4G/LTE services to its customers at large in AJK & GB without getting/buying spectrum and valid license of 4G/LTE services.
It is worth mentioning that PTA is yet to start the auction process of the 4G spectrum in AJK&GB.
M/S CMPAK (Zong) had also lodged a complaint on June 14, 2017 that such a launch would be discriminatory and anti-competitive. This resulted in a loss to the national exchequer worth approximately Rs 61.95 billion (the last price of 4G spectrum of Mobilink).