Tech and Telecom

Minister Denies Dispute with LDI Operators Over Pending Rs. 78.6 Billion Dues

The Minister In-charge of the Cabinet Division informed the National Assembly in a written reply that there is no dispute between the Pakistan Telecommunication Authority (PTA) and Long Distance & International (LDI) operators regarding higher Access Promotion Contribution (APC) charges, including during the period from 2008 to 2010.

According to the minister, the APC demands were based on reported minutes and applicable rates at the time.

While some licensees have challenged PTA in courts on issues such as the validity of PTA notifications and permissible discount ranges, many of these matters, including key legal questions, have been resolved by the Supreme Court. Other issues remain under consideration in various legal forums.

Ad Powered By Advergic
Loading ad . . .
Ad - Continue scrolling to read

The minister also clarified that the PTA is actively pursuing court cases for an early resolution to ensure compliance with judicial orders. Among the LDI operators that have initiated legal proceedings against PTA are Worldcall, Redtone, Telecard, Wisecom, Dancom, Circlenet, 4BGentle, Multinet and other ISPs.

However, the PTA maintains that there is no ongoing dispute regarding APC overcharging, and the cases stem from self-claimed issues raised by the operators. The authority is committed to adhering to court directions for resolving these matters.

The dispute traces its roots to allegations of wrongful application of APC rates on LDI operators during 2008 and 2010, a matter that has significantly affected the telecom industry. The PTA had refused to renew the licenses of several operators unless they cleared unpaid APC dues for the period in question.

Out of 21 license holders, 13 operators were involved in the dispute, with nine allegedly owing nearly Rs. 78.6 billion in APC dues, including Rs. 24.1 billion in principal and Rs. 54.5 billion in late payment fees. Four operators have cleared their dues and had their licenses renewed, while the rest are operating under court orders.

The issue has resurfaced recently as the licenses of several LDI operators, issued in 2004, have expired and are now due for renewal. These operators remain at odds with the regulator over unpaid dues, which PTA claims must be cleared before any renewal. These operators, which control nearly 90 percent of the market, are critical players in providing long-distance and international telecommunication services in Pakistan.

The PTA’s refusal to renew their licenses has raised concerns about potential disruptions in the country’s telecom and digital ecosystem, including mobile service quality and banking operations.

Share
Published by
ProPK Staff