PTA Sets $10.64 Million Precondition for Starlink’s Internet License in Pakistan

ISLAMABAD: Starlink, the internet company owned by billionaire Elon Musk is required to deposit $6,40000 license fee and additional letter of credit of $10 million (or equivalent Forex value in PKR) in favour of the Pakistan Telecommunication Authority (PTA) to get final license for operation in Pakistan.

Well-placed sources revealed that Starlink has applied for 14 local loop (LL) and one Long Distance International (LDI) licenses. The company’s representative on Tuesday visited PTA Headquarter and informed the relevant quarters about arrangement of fee and bank guarantee. Getting licenses for operation in Pakistan, depends on how soon Starlink deposit the required fee and bank guarantee, official added.

Information collected by this scribe revealed that LDI license issued for the provision of end to end communication between points that are located in Pakistan with points that are located outside of Pakistan.
Information to be provided by Applicant

An Applicant shall make a separate application for LL License and LDI License. In case Applicants are interested to obtain LL license in more than one region, separate application shall be filed for each region along with necessary documents. Total number of regions is 14.

Fees in the following amounts, payable in Pak Rupees, by direct credit to the designated bank accounts of the Authority, under intimation to the Authority, through normal banking channels:

1. Application fee of US $ 500 (or equivalent Forex value in PKR)
2. Initial fee – LL Licence of US $ 10,000/- (or equivalent Forex value in PKR) per Region applied for,
3. Initial fee – LDI Licence of US $ 500,000/- (or equivalent Forex value in PKR), and
4. Initial fee – Radio Frequency Spectrum, for a requested block in a Designated Band.

For Applicants for LDI Licence, a completed Stand by letter of credit of $10 million (or equivalent Forex value in PKR) in favour of the Authority.

1. Certificate of Incorporation of the Applicant and its Memorandum and Articles of Association;
2. Names of the Directors of the Applicant, and relation of each Director to any other Operator licensed by the Authority or any other Applicant for a Licence;
3. Shareholders of the Applicant, including details of each shareholder’s equity ownership;
4. Names of each Affiliate of a shareholder of the Applicant, where the Affiliate is an Operator or an applicant for a Licence, and description of the relation to the Applicant;
5. Copies of National Identity Card (for Pakistani national) / Passport (foreign nationals) and other antecedents of the Directors and authorized representative of the company.
6. Provide undertaking for the following:

1. That the Company or its Directors have never been declared insolvent by a court of law
2. That the Directors of the company have never been convicted by a court of law for major offences or unethical/immoral turpitude ( other than minor offences)
3. That neither the applicant Company nor its group/consortium members are defaulter (s) with reference to other PTA licences/transactions.

After submitting the required fee and bank grantee, Starlink would get the licenses.