Initial License Fee: PTA deposits Rs 1.2 billion with AJ&K council, Northern Areas secretariat

Pakistan Telecommunication Authority (PTA) has deposited Rs 1.2 billion with the AJ&K Council and NAs Secretariat on account of Initial License Fee (ILF) charged from four mobile operators who were issued licenses for service delivery in these areas.
In the wake of October 8 earthquake PTA granted temporary permission to mobile phone companies operating in Pakistan for provision of services in quake-hit areas. Later on, they were invited to obtain permanent licenses for Azad Jammu and Kashmir (AJ&K) and Northern Areas (NAs) against the ILF of $10 million each. Subsequently four mobile companies M/s Mobilink, M/s Ufone, M/s Warid and M/s Telenor acquired licenses by paying 50 percent of the license fee ($5 million) each upfront as per the terms of the payment, said a statement on Friday.
An amount of $20 million (Rs 1.2 billion) was collected by PTA from four operators and deposited with the AJ&K Council Secretariat and Chief Secretary, NAs in the ratio of 77:23 on the basis of population. Their share was Rs 927.696 million and Rs 277.104 million respectively. In view of special circumstances, PTA has not deducted any fee from the amount.
The fifth mobile license for AJ&K and NAs has recently been issued the same to CMPak (Paktel) for which the fee would be deposited following criteria. All five mobile companies will pay remaining 50 percent (ie $5 million each) in 10 equal annual instalments.
It may be mentioned that, with the introduction of mobile phone services people of these areas are getting enhanced communication facilities. So far one million cellular mobile connections have been provided by cellular operators in AJK and NAs. Mobile service in AJK is available at Bagh, Bhimber, Bharhing, Kotli, Muzzafferabad, Palandri, Rawalakot, Mirpur, Dhirkot, Ghari Duppatta, Hattian Bala, Dhudyal, Barnala, Kakra, Islam Gargh, Dirkot, Chamankot, Baloch, Sehnsa, KhuiRatta, Hajira, Tarar Khel, Abbas Pur, Jaraee, Rajdhani, Thraowchi, Puna, Sumani, Charoi, Fatepur, Barnala, Paniola, etc. In Northern Areas Gilgit, Hunza, Chilas, Skardu, Shigar, Danyor have been provided mobile services.
Moreover, Special Communication Organisation (SCO) which was the major provider of telecom services in the region is working on its several developmental activities including Rural Telecom Uplift Project Phase-II for provision of 80,000 telephone lines (along with 266-km Optic Fiber), enhancement of GSM capacity by 65,000 lines, laying of 570-km Optic Fiber, 26 digital exchanges with VSAT connectivity and laying of Outside Plant (OSP) in NAs.
SCO is also planning to lay Optical Fiber Cable link for International Connectivity between China and Pakistan. Chairman PTA Major General (Retd) Shahzada Alam Malik hoped that Cellular Mobile sector of AJ&K and NAs will grow further in coming years as all the mobile operators are planning to expand their networks and develop their infrastructure in the region.
He said that after the October 8, 2005 quake PTA responded swiftly and granted temporary permission to all mobile operators to start their services in the area immediately.
He said that keeping in view the rising demand of the region, for advanced telecom facilities, PTA initiated the liberalisation of telecom sector after mutual agreement between the Governments of Pakistan and AJ&K. Licensing for Cellular Mobile took place in June 2006. Licensing for Fixed Line and Wireless Local Loop is also underway, he added.