PTA Warns Severe Telecom Disruption Likely If LDI Licenses Aren’t Renewed

Pakistan Telecommunication Authority (PTA) has warned of a looming crisis in Pakistan’s telecom sector due to the potential non-renewal of Long Distance International (LDI) licenses, according to a document presented before the Parliament.

PTA highlighted the significant threat this poses to the country’s telecom infrastructure, with widespread implications for mobile services, internet connectivity, and banking operations.

The document reveals that Pakistan’s long-haul and metro optical fiber cable (OFC) network spans a total of 25,567 km and 18,337 km, respectively.

Similarly, Multinet Pakistan has leased out 6,993 km of long-haul fiber, while Worldcall contributes 1,800 km of long-haul and 734 km of metro OFC to the national infrastructure.

The non-renewal of LDI licenses poses a direct threat to these networks. PTA estimates that 50% of mobile traffic could be disrupted, leading to numerous mobile towers going offline. Furthermore, around 10% of internet traffic and 40% of ATM banking services could be affected, alongside disruptions in corporate internet services.

The impact extends to satellite services as well, with companies like Telecard, Multinet, Redtone, and Dancom operating satellite hubs crucial for communication in remote areas and for banking services. A lapse in LDI license renewals could compromise these services, affecting sites operated by mobile companies and government departments.

In the realm of international communication, the nine LDI operators contribute 21% of Pakistan’s total incoming voice traffic. A failure to renew their licenses would force a rerouting of this traffic, potentially causing service degradation, increased operational strain on the remaining operators, and interruptions in international communications.

The document also highlights the critical role of cross-border links facilitated by Multinet Pakistan, which maintain OFC, microwave, and fiber connections with Afghanistan. These links are vital for international data transit, and their discontinuation could lead to connectivity issues for Afghan operators relying on them.

The PTA’s decision to withhold license renewals stems from outstanding dues, with LDI companies reportedly owing Rs. 24 billion in Universal Service Fund charges, while telecom companies face Rs. 54 billion in late payment surcharges.

Some LDI licenses have already expired, with more set to expire in the coming months. Efforts by the IT Ministry’s steering committee to reach an out-of-court settlement have so far failed, leading several companies to seek legal recourse to continue their services post-license expiration.