Karachi ISP Sues WorldCall Over Alleged Contract Violation [Updated]

Update: The story has been updated with additional details and facts provided by WorldCall regarding the allegations made by NetSat (Pvt.) Limited.

WTL has rejected NetSat’s allegations, disputed the claims made in the original public notice, and stated that the matter is currently pending arbitration before a learned Arbitrator pursuant to the directions of the Sindh High Court.

Karachi-based Internet Service Provider NetSat (Pvt.) Limited initiated arbitration proceedings against WorldCall Telecom Limited over alleged breaches of contract relating to the operation, expansion, and management of WorldCall’s fiber network in Pakistan’s southern region.

WTL has strongly denied these allegations and claims that it is NetSat that materially breached the agreement dated September 20, 2021. According to WorldCall, NetSat failed to fulfill its financial obligations, including payment of the agreed upfront consideration, while cheques issued by NetSat were allegedly dishonoured upon presentation.

WTL further stated that NetSat failed to meet its contractual obligations relating to network rehabilitation, maintenance, and minimum revenue commitments. The company also claims it has filed counterclaims exceeding Rs. 2.2 billion, along with an additional claim of $200,000, alleging unauthorized use of WTL’s resources, concealment of customers, network degradation, and misappropriation of company assets, including technical equipment, generators, and vehicles.

NetSat alleged that WorldCall Telecom violated the terms of the agreement, prompting the initiation of arbitration proceedings. The company further claims that certain disputed network assets and upgrades continue to be commercially used despite the ongoing conflict.

The dispute will be settled through arbitration, which will determine the final rights and obligations of both parties.

The dispute remains pending before an arbitrator, who will determine the respective rights, liabilities, and obligations of both parties. As the matter is sub judice, the allegations and counter-allegations made by NetSat and WorldCall have not been adjudicated.