MDM Regulations notified: PTA says 8pc of manufactured devices to be done locally by end of 2 yrs

ISLAMABAD: The Pakistan Telecommunication Authority (PTA) Friday notified Mobile Device Manufacturing (MDM) Regulations, 2021 binding the manufacturers of eight percent of the total manufactured devices to be done locally by the end of two years, and displaying “Manufactured in Pakistan.”

According to the notification, these regulations shall come into force with effect from 25th January 2021.

An application for the grant of Authorization to manufacture mobile devices in Pakistan shall be made the form set out in Schedule “A” to these regulations.

The authorization holder shall ensure localisation of mobile device manufacturing in the manner prescribed below: at the end of one year, two percent of total manufactured device packaging to be done locally, two percent of total manufactured device chargers to be produced locally, one percent of total manufactured device hand-free to be produced locally, 10 percent of total manufactured device motherboard assembly (PCBA) to be produced locally; at the end of 2nd year, eight percent of total manufactured device to be done locally, eight percent of total manufactured device display screens and components to be produced locally, 10 percent of total manufactured device batteries to be produced locally.

All devices shall be manufactured as per ITU-T technical standards and certification reports for all components shall be provided to the PTA for verification.

If the authorization holder fails to comply with any of the above conditions, they can submit a written justification to the authority.

In case of same is accepted by the Authority, the above conditions shall be extended for a maximum period of two years or in case of any revision in the MDM policy issued by government of Pakistan.

The PTA may conduct inspections of the manufacturing facility through its designated representative to ensure that Authorization holder is complying with the standards set out in terms and conditions of the Authorization.

Provided that the Authorization holder shall demonstrate the following equipment is installed in manufacturing facility as part of inspections, Laboratory of Reliability Testing, Battery Test Lab, Accessories Test Lab, and Radio Frequency Audio and Optical Lab.

Quality and Control Testing at assembly line including Device Function Test (b) Controlled Drop test of device (c) Electrostatic Discharge (ESD) setup/tools (e.g. ESD coat, cap, wrist band etc.).

An application under sub-regulation (1) shall be accompanied with application processing fee (non-refundable) of US dollar hundred ($100) or its equivalent in Pak rupees to the Authority and shall submit proof of payment along with application.

The Authority may grant an Authorization to manufacture mobile devices in Pakistan to an applicant who fulfills the open, transparent and non-discriminatory eligibility criteria given by the Authority from time to time.

The Authority shall consider all applications on merit and in determining whether or not to grant a certificate, the Authority shall consider the following factors, technical competence and experience of applicant's management and key members of staff and local participation in the business; and technical viability of the applicant’s business plan for mobile device manufacturing.

The Authority may reject an application; if it appears that the grant for the Authorization shall threaten or potentially threaten national security.

The applicant must have valid registration of the Securities and Exchange Commission of Pakistan (SECP).

In case the Authority decides to reject the application, it shall give reasons of rejection. An Authorization shall be valid for a period of 10 years.

Copyright Business Recorder, 2021