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PTA Warns of Network Chaos Over LDI License Delays

  • September 9, 2024
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PTA has issued a stark warning to the Senate Standing Committee on IT and Telecom, cautioning that massive disruptions and network issues could ensue if the licenses of Long Distance International (LDI) companies are not renewed.

PTA officials expressed concerns over the potential consequences of non-payment of outstanding dues by these companies. They highlighted the significant time required to restore network services if foreign companies are forced to cease operations. Moreover PTCL lacks the capacity to fully compensate for such a shortfall.

Chairman PTA Major General (R) Hafeezur Rehman informed the committee that while five LDI companies have expressed willingness to pay their dues, several others have filed legal challenges. With the licenses of these companies set to expire between July and August, approximately 15 cases are currently pending in court.

The committee addressed the Rs. 54 billion exemption sought by LDI companies. Discussions centered on the former IT Secretary’s policy directive on the matter, which faced opposition from IT Ministry officials. The Senate committee chairman questioned the legal basis of their stance, to which the ministry officials responded by citing the ex-secretary’s involvement in corruption cases.

A senator raised concerns about the potential impact of halting LDI company operations on network services. PTA officials confirmed that such a move could lead to significant disruptions, as PTCL alone does not possess the necessary capacity to manage the shortfall.

The committee urged the federal government to provide clear policy direction to avoid potential losses. Members emphasized the need for a decision on which companies will be licensed and at what price.

Additionally, the committee advised PTA to strengthen its legal team to address ongoing stay orders that have delayed proceedings. If court rulings are not resolved promptly, licenses could be canceled, further complicating the situation.

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