The non-renewal of Long Distance International (LDI) licenses due to outstanding dues of approximately Rs79 billion poses a major risk to Pakistan’s telecom infrastructure, potentially disrupting mobile services, internet connectivity, and banking operations. This issue, which affects around 50% of mobile traffic, 10% of internet traffic, and nearly 40% of ATM services, was highlighted during a meeting of the Senate Standing Committee on Information Technology and Telecommunications, chaired by Palwasha Mohammad Zai Khan.
Key Impact of Non-Renewal:
| Service | Impact |
|---|---|
| Mobile Traffic | 50% of mobile services could be disrupted |
| Internet Traffic | 10% of internet traffic could be affected |
| Banking (ATM Machines) | 40% of ATM services may be out of order |
| Corporate Intranet Services | Significant corporate connectivity disruption |
Affected Companies and Licenses
The Pakistan Telecommunication Authority (PTA) presented details of 13 LDI licensees, of which four licenses are in the renewal process, while nine operators have outstanding dues related to Access Promotion Contribution (APC) for the Universal Service Fund (USF). Affected companies include Wateen, which has an extensive fiber optic network and serves 44 banks and the National Database and Registration Authority (NADRA).
Despite a committee being formed to address the license renewal issues, no resolution has been reached. Wateen’s license expired in July 2024, but the company obtained a stay order from the court.
Fiber Optic Infrastructure in Pakistan:
The committee was informed about the extensive Long Haul and Metro Optical Fiber Cable (OFC) network:
| Company | Long Haul OFC (km) | Metro OFC (km) | Leased To |
|---|---|---|---|
| Wateen Telecom | 18,774 | 17,140 | Leased to Telenor, Jazz, CMPak |
| Multinet Pakistan | 6,993 | N/A | Leased to Telenor, Jazz, CMPak |
| Worldcall | 1,800 | 734 | Leased to various companies |
The non-renewal of LDI licenses would directly affect telecom operators relying on these fiber networks, leading to mobile towers going offline and reduced internet traffic, creating an operational gap that PTCL cannot fill.
Satellite Communication Providers:
LDI operators like Telecard, Multinet, Wateen, Redtone, and Dancom operate satellite hubs, which are critical for communication in remote areas. The bandwidth capacities of these operators are vital for banking services, Cellular Mobile Operators (CMOs), government departments, and law enforcement agencies (LEAs).
| Operator | Throughput Capacity (Mbps) | Major Links |
|---|---|---|
| Redtone LDI | 496 | Banks, CMOs, LEAs, Government Departments |
| Telecard | 2,970 | Banks, CMOs, Government Departments |
| Wateen Telecom | 55 | Primarily CMO sites |
| Multinet Pakistan | 41 | Mainly banks and CMO sites |
| Dancom | 640 | Mostly banks |
Broader Consequences:
Non-renewal of LDI licenses will have a ripple effect on Pakistan’s telecom ecosystem, including disruptions to international incoming traffic. This traffic will need to be rerouted to other LDI operators, potentially leading to degraded service quality and increased strain on the remaining operators.
The Senate Standing Committee has raised concerns about these issues and emphasized the urgent need to resolve them to prevent significant losses and disruption to communication services across the country.
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