The Pakistan Telecommunication Authority (PTA) has introduced a draft class license framework for tracking services. The move aims to regulate a fast-growing industry that uses mobile and satellite technologies to monitor vehicles and other assets across Pakistan.
The regulator released the consultation document and invited input from technology firms, service providers, and industry stakeholders. PTA asked the market to respond to six key policy questions. These questions focus on jurisdiction, license duration, fee structure, and the official definition of tracking services.
Key Consultation Points
PTA wants feedback on the geographical scope of the proposed license. The regulator currently plans to issue the license at a nationwide level. However, it also asked whether regional or provincial authorizations should be introduced. This question arises because most tracking services operate through licensed mobile and satellite networks.
The authority also proposed reducing the license term from 15 years to 10 years. According to PTA, a shorter period may reflect faster technology changes and allow regulatory flexibility. Stakeholders must also assess whether a 10-year term supports investment recovery for service providers.
In addition, the PTA asked industry players to review the definition of “Tracking Services.” The regulator wants to confirm whether the definition fully reflects the operational scope of the sector.
Proposed Fee Structure
Under the draft framework, the regulator has suggested a simple fee model for license holders.
- Initial License Fee (ILF): PKR 500,000
- Annual License Fee (ALF): PKR 25,000 (fixed amount)
PTA plans to replace the traditional percentage-based annual fee system with a fixed yearly fee. The authority has asked stakeholders whether this approach fits the current market structure for tracking services.
Scope of the License
The proposed license will allow companies to offer tracking solutions through two connectivity options.
- SIM resources from licensed cellular mobile operators or MVNOs
- Satellite connectivity from PTA-licensed satellite service providers, subject to prior approval
However, the license strictly limits telecom activities. Tracking operators will not be allowed to establish public telecom networks. They also cannot provide voice services, broadcast content, or offer wholesale bandwidth services.
Moreover, companies must sign Service Level Agreements with mobile or satellite providers. PTA must approve these agreements before operations begin. The SLAs must clearly define service scope, coverage area, pricing methods, quality standards, dispute resolution, and force majeure conditions.
Data Protection and Security Rules
The proposed framework introduces strict privacy and data protection requirements.
- Operators must obtain user consent before enabling tracking
- Tracking data must be stored and hosted inside Pakistan
- Licensees must provide operational access and network information to PTA for monitoring
PTA also plans to restrict international operations. Tracking companies will not be allowed to operate outside Pakistan or transfer tracking data abroad.
Companies that obtain the license must launch their services within one year of approval. The license will remain valid for 10 years. Renewal will depend on compliance with the Pakistan Telecommunication (Re-organization) Act 1996 and the Pakistan Telecommunication Rules 2000.
Operators may also use Industrial, Scientific, and Medical (ISM) radio bands. However, this use must follow regulations issued by the Frequency Allocation Board of Pakistan and must avoid interference with other services.
