The Pakistan Telecommunication Authority (PTA) has proposed a new Class Licence for Intranet Data Communication Services (IDCS). Consequently, this framework aggressively regulates Virtual Private Network (VPN) services across the country. Currently, the PTA is inviting stakeholder feedback regarding jurisdiction, fees, tenure, and compliance requirements.
Strict Categorization & Surveillance by PTA
The draft introduces Article 4A. This section distinctly separates VPNs into Corporate and Public categories. Corporate VPNs remain restricted to registered businesses and multinational companies. Furthermore, licensees must maintain detailed records of these corporate clients, including authorized connection points and designated representatives.
Conversely, Public VPNs target individuals. However, providers must enforce strict Know Your Customer (KYC) protocols. They must verify Pakistani nationals via CNIC/NICOP. Meanwhile, foreign nationals require passport and visa verification. The PTA may even demand biometric verification.
Additionally, the proposed framework enforces intense surveillance. VPN services must use PTA-approved encryption standards. They must also deploy lawful interception (LI)-capable systems. Moreover, licensees must retain detailed connection logs for at least two years. These logs include timestamps, IP addresses, and data volumes. Most importantly, VPNs cannot bypass blocked content, enable anonymous communications, or evade lawful surveillance.
Furthermore, providers must route all international VPN traffic exclusively through licensed Long Distance and International (LDI) operators, PTCL, or NTC. The PTA strictly bans direct routing via unlicensed or grey routes.
Jurisdiction, Tenure & Financial Overhaul
The PTA proposes restricting the licence jurisdiction to “Nationwide Only”. Therefore, it eliminates the previous provincial option. Additionally, the regulator slashed the licence term from 15 years to 10 years. Licensees must apply for renewal at least 30 months before expiry. The PTA holds the power to deny renewal for grave or repeated violations after due process.
Financially, the PTA proposes massive fee hikes. The regulator raised the Initial Licence Fee (ILF) from Rs. 300,000 to Rs. 1,000,000. Additionally, it set the Annual Licence Fee (ALF) at a minimum of Rs. 100,000 or 0.5% of annual gross revenue (AGR), whichever is higher. Finally, the Application Processing Fee (APF) jumps from Rs. 5,500 to Rs. 20,000.
Rollout Rules & Restrictions
The draft places heavy operational restrictions on providers. Licensees cannot offer internet services, commercial voice, wholesale bandwidth, broadcasting, or public switched telecommunications networks under this specific licence.
Furthermore, the PTA bans cross-subsidisation. Companies holding multiple licences must maintain separate accounts to prevent undue preference. Finally, licensees must launch their services within one year. They can only deploy purpose-specific last-mile infrastructure if existing local providers fail to deliver within three months. Even then, they need prior PTA approval.
