The Pakistan Telecommunication Authority (PTA) has released a draft class license for voice-based services that brings major changes for smaller telecom operators. The new rules shorten license tenure from 15 years to 10, quadruple the application fee, and introduce stricter compliance and security requirements.
The consultation paper covers Pay Phone Services (PPS), Premium Rate Services (PRS), and Trunk Radio Services (TRS), reflecting PTA’s focus on tighter regulation amid rising concerns over digital surveillance, data protection, and market discipline.
The draft is likely to reshape how niche operators operate in Pakistan. By reducing license validity, PTA can review compliance more frequently, particularly in revenue reporting, quality of service, and security cooperation. Renewal is no longer automatic. Operators must submit applications 30 months before expiry, and the authority can reject renewals for repeated or serious violations. A show-cause and hearing process is outlined, but the final decision rests with PTA.
Higher Fees and Stronger Compliance Measures
The proposal also raises the application processing fee from Rs5,500 to Rs20,000, aligning it with other class licenses. While the Initial License Fee (ILF) and Annual License Fee (ALF) remain at 0.5 percent of annual gross revenue minus inter-operator costs, late payments will now incur a 2 percent monthly surcharge, recoverable as arrears of land revenue.
The draft emphasizes anti-competitive safeguards. Operators cannot cross-subsidize voice services using revenue from other licenses in Pakistan, Azad Jammu & Kashmir, or Gilgit-Baltistan. Separate audited accounts for each service will be mandatory to prevent predatory pricing and market distortion. PTA also prohibits undue preference or discriminatory pricing for customers with different cost structures.
Data localization and national security are central to the draft. All user information and call detail records must remain within Pakistan. Remote access for database management requires approval, and all encryption tools need prior authorization. Operators must deploy lawful interception systems following ETSI standards, maintain call logs for at least one year, and install monitoring systems for traffic measurement, billing, and threat detection.
Operationally, service rollout must occur within one year of license issuance. Network changes affecting interconnection or performance require PTA approval and public notice. PPS and PRS operators must establish Service Level Agreements with Local Access Providers, covering pricing, quality benchmarks, dispute resolution, and force majeure clauses. Service discontinuation will need 90 days’ notice to customers and regulatory clearance, provided all dues are settled.
