Pakistan Telecommunication Authority has begun granting district-level Class Licenses for Internet Services across Pakistan, effective from January 1, 2026, in a structured effort to encourage local entrepreneurship and expand broadband penetration at the district level. The licenses are being issued under Broadband Policy 2004 and represent a deliberate push to create new, locally anchored internet service providers in areas that have historically been underserved by larger national operators whose commercial incentives have favoured dense urban markets over smaller cities and rural districts.
Each license applies exclusively to a single district, is restricted to one entity, and remains valid for ten years, ensuring structured regulation and sustainable broadband service expansion. Applicants must pay a processing fee of Rs. 20,000, an initial license fee of Rs. 300,000, and an annual fee of Rs. 100,000 that increases by ten percent yearly throughout the license duration. License holders must commence internet services within one year from the date their license is officially issued, and within one year of receiving a commencement certificate, providers must establish at least one hundred active broadband connections in their district.
On the infrastructure and bandwidth side, the framework sets clear sourcing requirements while also providing flexibility. Bandwidth must be acquired from Pakistan Telecommunication Company Limited, Long Distance and International licensees, or Local Loop licensees as approved by the authority. Last-mile infrastructure can be sourced from Local Loop or Infrastructure licensees, or through a Cable Television Distribution License issued by Pakistan Electronic Media Regulatory Authority. Providers may also lay their own transport infrastructure, provided they demonstrate a three-month failure to obtain it from existing operators and receive prior Pakistan Telecommunication Authority approval. This provision is significant as it gives new entrants a practical pathway to build independent infrastructure where existing operators have been unresponsive or unavailable, without requiring them to rely entirely on incumbent networks that may have little commercial incentive to support new competition.
A total of 62 applications have been received by Pakistan Telecommunication Authority for the Class License for Internet Services at the district level across Pakistan. Out of the 62 total applications received, the authority has formally approved and granted licenses to 21 applicants so far nationwide, with the remaining 41 applications currently under evaluation and decisions expected to follow in due course. The volume of applications reflects genuine market interest in the district-level licensing model, suggesting that local entrepreneurs and smaller technology companies see an opportunity in delivering connectivity at the community level that larger operators have not fully addressed. With Pakistan’s broadband penetration still well below its potential given the country’s population size and expanding digital economy, the district licensing framework represents a structural attempt to diversify the provider landscape and accelerate last-mile connectivity in the areas that need it most.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
