PTA to Revise License Fee For Radio Based Services

Pakistan Telecommunication Authority (PTA) has decided to revise the radio frequency spectrum and license fee for Radio Based Services (RBS) to cover the gaps between charges and administrative costs of managing licenses as well as spectrum.

PTA stated that the existing radio frequency spectrum and license fee for RBS were implemented back in 2000 and no revision has been made since then. The revision in charges has been carried out to cover the gaps between RBS charges and administrative costs of managing licenses as well as a spectrum that has been ever-increasing for the past 24 years.

The accumulative average inflation rate during the period is approximately 700 percent. Moreover, the value of services being provided through RBS licenses and authorizations has also increased manifolds with advancements in technology and requirements of modern-day communication systems. Therefore, a revision of the rates is imperative.

The proposed revision has been carried out in the light of best international practices and to simplify the calculation of frequency charges making it independent of the terminal equipment such as mobile stations and walkie/talkies. Moreover, instead of increasing the rates in a single step to bridge the gaps, a phased approach will be adopted through periodic revision in consultation with the stakeholders. The present revision would therefore be applicable for 3-5 years.

The following two types of mechanisms have been devised for the proposed rates:

Following flat rates are proposed for RBS other than PRN:

1. Mobile Station (Aircraft) Rs. 20,000 per annum,
2. Mobile Station (Ship) Rs. 20,000 per annum,
3. Inmarsat Rs. 50,000 per annum
4. Amateur Rs. 5,000 per annum.

The formula-based rates shall be applicable to the following PRN services where the frequency spectrum is assigned on case to case basis by FAB:

1. Land Mobile Private Networks (VHF, UHF, etc.)
2. Trunk Radio
3. Aeronautical Ground Station.The
4. Maritime Coastal Station Formula devised for the calculation of relevant spectrum charges is: Annual Charges = (Base price) x (frequency factor) x (No. of frequencies) x (Bandwidth) x (output power) x (Location factor).

The new rates, as and when approved by the Authority, shall apply to all corresponding categories of Radio Based Service providers.

The existing licensees shall pay the revised rates with effect from the date of notification as duly mentioned in respective licenses/approvals for the remaining tenure of the license on an annual/ lump sum basis. The new/renewed licensees shall pay license fees and spectrum charges for the complete five years, the term of the license, in advance.