Telecom Operators Concerned Over Smartphone Installment Policy in Pakistan

ISLAMABAD: Pakistan’s smartphone installment policy has sparked debate within the telecom industry, with operators expressing concerns over its potential implications. While the initiative aims to boost digital accessibility, some mobile operators argue that enforcing SIM blocking for defaulters could have unintended consequences.

Sources reveal that two out of four major telecom operators strongly oppose the clause that mandates suspending all SIM cards registered to a defaulter’s CNIC. They believe this could violate citizens’ digital rights and hinder efforts to improve digital inclusion in Pakistan. Critics also point out that, in many countries, governments—not telecom firms—absorb the financial burden of defaults.

The Ministry of IT has finalized the smartphone installment policy and shared it with telecom companies. However, ongoing disagreements over defaulter penalties and risk-sharing mechanisms are delaying its approval. Some operators support the framework, but others argue that telecom providers should not bear the financial risks associated with non-payment.

Initially drafted in November 2023, the policy underwent revisions after being returned by the federal cabinet for legal vetting. Following the 2024 general elections, IT Minister Shaza Fatima incorporated feedback from banks, fintech firms, and telecom operators into an updated version. Yet, the lack of industry-wide consensus continues to stall progress.

To address concerns, some telecom operators have suggested alternative solutions, such as implementing higher interest rates or requiring larger upfront payments to mitigate risk. However, government officials argue that such options are already available in the market and do not align with the policy’s goal of affordable smartphone access.

With no final agreement among telecom companies, the smartphone installment policy in Pakistan remains in limbo. The Pakistan Telecommunication Authority (PTA) and the IT Ministry can only move forward once a unified directive is approved by the federal government.