PTA Considers Revising Local Loop Licensing Rules to Promote Broadband Expansion

ISLAMABAD: Pakistan Telecommunication Authority (PTA) is considering revising the scope of mandatory services in Local Loop (LL) License including determining whether LL licensees should be required to provide voice services also.

Currently, LL licensees are expected to provide both voice and data services. PTA intends to examine whether LL Licensees should be allowed to function solely as Internet Service Providers (ISPs), focusing purely on broadband services without a mandatory voice telephony obligation.

• Introduction of ISP-only LL license to promote broadband proliferation.
• Market flexibility, allows service providers to invest in high-speed data networks without requiring voice services, thereby promoting broadband infrastructure investment.

PTA is undertaking a consultation process to gather feedback on the regulatory framework LL Licensing regime in Pakistan, in light of evolving communication technologies. With the rapid adoption of next-generation voice services and broadband solutions, it is essential to ensure that the regulatory regime supports innovation, competition, and efficient service delivery. This consultation seeks stakeholders’ input to reassess the obligations of LL license in facilitating modern voice services and enhancing connectivity while aligning with global best practices to improve service quality, reduce operational costs, and introduce innovative services.

Through this consultation, the PTA seeks to:

1. Assess Current Regulatory Regime: Determine if the existing LL licensing regime aligns with the technological advancements and current market dynamics.
2. Gather Stakeholder Input: Collect feedback from industry and other stakeholders on potential regulatory adoption, if required.
3. Promote Fair Competition: Ensure that the regulatory environment fosters healthy competition, benefiting consumers with better and more affordable/ competitive services.

Key Objectives of Consultation

This consultation process is expected to align with technological advancements, market dynamics/ demand, and consumer needs. The key outcomes are expected to include:

Clarity on Mandatory Service Obligations for LL License

One of the main objectives of this consultation is to determine whether Local Loop (LL) licensees should be required to provide voice services. Furthermore, should they have the flexibility to adopt modern technologies such as Network Function Virtualization (NFV), Software-Defined Networking (SDN), VoIP, and Packet-Switched Networks (PSN), etc. to provide voice services.

• Regulatory clarity on whether voice services remain mandatory?
• If voice service remains Mandatory then, whether LL licensees transition to a technology-neutral approach?

Numbering Resource Allocation Requirement

The consultation may help define numbering resource allocation requirements for LL licenses offering services through modern technologies. Allocations of numbering resources for provisioning of voice services.