Major operators under regulatory cloud as LDI License Renewals Face Delays

The future of several key players in Pakistan’s telecom sector is uncertain as major operators remain under regulatory cloud over the renewal of their Long Distance and International (LDI) licenses. The Pakistan Telecommunication Authority (PTA) and the Ministry of Information Technology and Telecommunication (MoITT) are locked in discussions over the settlement of outstanding dues exceeding Rs81 billion.

According to an official document titled “Status of Renewal of LDI Licenses,” 13 LDI licenses are scheduled for renewal between 2024 and 2026. So far, four licenses — Telenor, Orient, LinkDOTNet, and ADG — were successfully renewed in 2024. However, seven other operators, including WorldCall, Wateen, Telecard, Dancom, Redtone, Wise Communication, and Circle Net, continue operations under legal protection following orders from the Sindh High Court.

Additionally, two more operators, Multinet and 4B Gentel, are lined up for renewal in 2025 and 2026. The regulatory cloud over major operators is largely due to unresolved payments of Access Promotion Contribution (APC) for the Universal Service Fund (USF) and mounting Late Payment Additional Fees (LPAF).

The operators are categorized into two groups:

• Category 1 consists of five operators — Telecard, Wateen, WorldCall, Wise Communication, and 4B Gentel — who have agreed to pay their Rs8.2 billion principal dues in installments.
• Category 2 comprises four operators — Multinet, Redtone, Dancom, and Circle Net — who have declined to settle their Rs15.8 billion outstanding dues.

Mounting Dues and Legal Challenges Threaten License Renewals

Moreover, LPAF totaling Rs57.2 billion as of March 13, 2024, is pending against 10 LDI operators, pushing the cumulative outstanding figure to Rs81.2 billion.

On the legal front, the Sindh High Court, in a ruling dated November 27, 2024, instructed that the competent authority must decide on the renewals without taking coercive action during the deliberation process.

The MoITT, in a letter dated January 28, 2025, supported offering facilitation to licensees for dues settlement while considering their renewal applications. Hearings for the adjudication of the Show Cause Notices (SCNs) regarding APC dues and license renewals began in April 2025 and will continue through May 2025.

The outcome of this process will be critical for the stability of Pakistan’s international telecom services, as the resolution of dues and licensing issues remains pending regulatory determination.