Technology

PTA receives Rs 15.82 billion against second installment of license renewal fee

PTA

Two Cellular Mobile Operators (CMOs), Telenor Pakistan and Pakistan Mobile Communication Ltd (Jazz), have paid the Pakistan Telecommunication Authority (PTA) Rs 15.82 billion as the second installment of license renewal fee. 

According to a PTA official statement, the money will be put in the Federal Consolidated Fund (FCF) as required by the Pakistan Telecom Reorganization Act 1996. 

PTA has so far deposited Rs 135.81 billion with the government, with three CMOs contributing 50% of the overall license renewal price and the first installment. The second installment has now been received from two CMOs, bringing the total revenue on this count to Rs 151.63 billion. CMPAK (ZONG) license renewal fee installment of USD 54.086 is due in October 2021. 

Read more: Pakistan to auction extra telecom spectrum for $1 billion

The government had previously collected $238.6 million in non-tax revenue as a license renewal fee from China Mobile. In September 2019, Telenor Pakistan and Jazz each paid a license renewal price of $224.6 million. 

The government granted the renewal of licenses for two mobile operators, Jazz and Telenor Pakistan, for roughly $450 million each, while CM Pak will have to pay $470 million. 

IHC stoped PTA from action against two mobile companies

The collection of the renewal money from two telecom firms has been delayed due to stay orders issued by the Islamabad High Court. 

On May 26, 2004, the PTA issued cellular licenses to two new cellular mobile operators, Telenor Pakistan and Warid Telecom (now merged with Jazz), for a period of 15 years, under the Mobile Cellular Policy, 2004, in exchange for a payment of $291 million. 

Paktel Limited, currently China Mobile Pakistan (Zong), had its cellular license extended by PTA under the 2004 Policy on October 23, 2004, for a period of 15 years for a fee of $ 291 million. Both of these licenses were set to expire on May 25, 2019 and October 22, 2019. The Pakistani government renewed Ufone’s license in 2014 for $291 million. 

On August 21, the Islamabad High Court (IHC) ordered Telenor and Jazz to deposit 50% of the license renewal fee, or roughly Rs 36 billion each, as a guarantee within two weeks. 

The operators were dissatisfied with the PTA’s choice to continue the license renewal charge the same. The operators had also asked for a stay order to prevent service disruptions in the country after August 21, 2019, the PTA’s deadline for license renewals. 

Telenor and Jazz’s mobile licenses expired on May 26, 2019. 

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