The Pakistan Telecommunication Authority (PTA) is proposing significant changes to the current Data Class Value Added Services (CVAS) License scheme, aiming to streamline entry-level licensing for internet services and promote broadband expansion nationwide.
Key modifications in the proposed scheme include shifting the licensed area/jurisdiction of Data CVAS from Nationwide/Province to District level and reducing the license duration from 15 years to 10 years.
Furthermore, the annual license fee (ALF) is proposed to be set at PKR 100,000 with a 10% annual increase, replacing the previous 0.5% of Adjusted Gross Revenue.
The PTA has initiated a consultation process on the draft template of the Data Class Value Added Services (CVAS) License for the provision of Internet services. Stakeholders, including telecom operators, cable TV operators, consumer associations, and the general public, are invited to submit their comments and views electronically to consultationsnd@pta.gov.pk before March 25, 2024, by 4:30 p.m.
According to the PTA, the existing Class Licensing Regime, introduced after the De-Regulation Policy of 2003 and the Broadband Policy of 2004, encompasses three primary categories: Data CVAS License, Voice CVAS License, and CVAS Registration.
However, technological advancements and market dynamics over the past two decades have necessitated a revision of the Data CVAS License to align with evolving technological shifts.
The PTA highlights the interest of cable TV operators regulated by PEMRA in providing Internet services using their existing infrastructure. However, the current regulatory framework obligates them to obtain separate licenses from PTA, causing reluctance due to associated obligations, including voice service provision.
