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A dispute that began years ago finally reached a turning point in late 2025 when Pakistan’s telecom regulator moved to enforce its authority against a private operator. On December 19, 2025, the Pakistan Telecommunication Authority issued an enforcement order against M/s Dancom Pakistan (Pvt.) Limited overpaid Access Promotion Contribution dues for the Universal Service Fund. The case can be traced back to February 25, 2020, when the regulator first issued a show cause notice, and it later advanced to a formal hearing held on April 16, 2025, at PTA headquarters in Islamabad.
Background and Issue
PTA granted Dancom an LDI license in 2004 for terminating international incoming calls, obligating compliance with APC for USF rules to fund rural telecom infrastructure. Dancom made sporadic partial payments from 2005-2009 and escrow deposits under court orders and ICH policy (2012-2015), but persistently defaulted, citing litigation, calculation disputes, and market rates. Legal challenges, including cases up to the Supreme Court (e.g., 2016 SCMR 475 upholding PTA’s framework), failed to nullify obligations, with PTA recalculating dues post-2019 Supreme Court remand.
Outstanding Dues
Principal APC for USF totals Rs. 1,642,854,825 across 44 periods (2006-2012, based on Dancom’s traffic data), plus late payment additional fees (LPAF). Updated as of December 15, 2025, the full demand is Rs. 5,559,085,662 (principal + Rs. 3,916,230,837 LPAF). Key periods include high-traffic months like June 2009 (Rs. 129 Mn) and July 2009 (Rs. 166 Mn).
| Period Examples | Principal Amount (PKR) |
|---|---|
| Sep 2006 (partial) | 3,244,134 |
| Jun 2009 | 129,221,356 |
| Jul 2009 | 165,789,310 |
| Total Principal | 1,642,854,825 |
PTA Findings and Dancom’s Defenses
PTA rejected Dancom’s claims of overpayment (e.g., Rs. 122 Mn excess), invalid notifications, or “international market rates” overriding notified rates (e.g., US$0.025-0.075/min). It affirmed APC calculations per Access Promotion Rules 2004 and Regulations 2005, noting Dancom’s admissions via payments and no contrary traffic data. Past court stays (e.g., FAO 108/2018, CS 123/2011, dismissed 2021) did not restrain proceedings.
Enforcement Directives
Dancom must pay the full Rs. 5,559,085,662 within 30 days of order receipt or face license suspension/termination. PTA emphasized APC’s role in public revenue sharing, not a tax on Dancom’s income, and upheld late fees under the upheld regulations.
