PTA Unveils 15-Year VPN License Framework & USF Targets Highway Internet Black Spots

In a crucial briefing to the Senate Standing Committee on IT & Telecom today, the Pakistan Telecommunication Authority (PTA) officially laid out the modus operandi for VPN licensing. Simultaneously, the Universal Service Fund (USF) provided a detailed compliance report on network coverage gaps across major highways and remote districts.

Here is what went down in today’s committee meeting.

PTA Formalising VPNs: The “Data Class License”

The PTA has moved to regulate the grey traffic of Virtual Private Networks (VPNs) through a structured “Class License” regime. According to the briefing documents, any applicant intending to provide commercial VPN services must now be a proper legal entity registered with the Securities and Exchange Commission of Pakistan (SECP).

The authority outlined strict criteria for these licenses. Applicants must demonstrate technical capability, including network architecture and telecom expertise. Furthermore, they must provide a financial feasibility plan.

Key details of the new framework include:

• License Validity: The “Data Class License” is valid for 15 years.
• Cost: The registration fee is set at $500, alongside annual fees.
• Current Status: PTA has already issued 6 Data Class Licenses.

Additionally, established operators like PTCL and NTC are already authorised to offer VPN services under their existing licenses. Currently, 12 out of 16 licensees have successfully obtained their commencement certificates.

Bridging Connectivity Gaps on National Highways

Shifting focus to infrastructure, the USF presented updated data on “dead zones” along Pakistan’s critical transport arteries. The analysis focused heavily on the N-5 and M-9 routes.

• N-5 (Karachi to Sukkur): The route is 97% covered. Out of a total length of approximately 492 km, only 14.22 km remains unserved.
• M-9 (Karachi to Hyderabad): Connectivity is even higher here, with 99% coverage. Only a 1.1 km patch remains without signals.

The USF noted that these specific unserved patches have been marked for future intervention, subject to policy and budget availability.

Updates on Sindh & Balochistan Projects

The committee also reviewed specific complaints regarding remote connectivity. In Umerkot (Sindh), the USF addressed the lack of Optic Fiber Cable (OFC) connectivity. The fund initiated a new project, OFC-UC-SD-LOT36, to connect unserved Union Councils and is currently evaluating bids.

Meanwhile, in Balochistan, the team analysed coordinates for 113 locations. Consequently, the USF identified 4 genuinely unserved locations and added them to the future coverage list.

Lastly, regarding service quality in Gali Samli (Abbottabad), PTA surveys conducted in mid-2025 confirm that Ufone has improved its services, with Quality of Service (QoS) indicators now falling within the licensed thresholds.