Several options for settlement of outstanding amounts against LDI operators under study

ISLAMABAD: The government is contemplating upon several options on settlement of outstanding amounts of around Rs78.66 billion against Long Distance International (LDI) operators including framing regulations for appointment of referee and making the decision of the referee as non-appealable in the court.

Official documents revealed that till date, Pakistan Telecommunication Authority (PTA) has raised a claim of Rs24.134 billion against the principal amount besides late payment adjustment fee (LPAF) amounting to Rs54.532 billion (total 24.134+54.532 = 78.666).

The Ministry of Information Technology and Telecommunication has devised a way forward for consideration to resolve the LDI matter, which include; The Attorney General for Pakistan may be requested to personally appear before the Court and request for expeditious disposal of the pending cases. The hearings on stay orders should be fixed on a day-to-day basis to decide on stay applications on urgent basis.

The same categories of cases i.e. APC for USF or non-renewal of LDI licence tiled by different LD1 operators in the same court should be clubbed together for expeditious disposal of cases. Regulations would be framed for appointment of referee and making the decision of the referee as non-appealable in the court.

The PTA issued notifications dated 31-03-2008, 6-01-2009 and 19-06-2009 regarding determination of APC (Access Promotion Contribution) for Universal Service Fund (USF). The LDI operators did not pay APC for USF amount on the ground that the said Notifications do not specify APC for USE therefore the said notifications are not applicable.

The PTA issued demand notices to the LDI operators for the outstanding amount with respect to APC for USF. The LDI operators filed multiple cases in various High Courts thereby challenging the notification and the demand notice. The courts have granted stay orders against payment of the outstanding amounts. There are numerous court cases that are pending adjudication before the superior courts. The period during which the APC for USF amounts were not paid is 2008-2011.

During the International clearing house policy (2012-2014), PTCL deducted amounts and deposited in the escrow account. The escrow account is still operating and Rs5.8 billion is the present balance, including the amount of profit over the years. Till date, the PTA has raised a claim of Rs24.134 billion against the principal amount besides LPAF amounting to Rs54.532 billion (total 24.134+54.532 = 78.666).

Pursuant to Rule 8 of AP Rules, 2004, it is the responsibility of the PTA to determine the APCL contribution and APC for USF contribution country by country. Further rule 9 states, PTA shall notify any change in the APC contribution at least 30 days before any change becomes effective. Under regulation 6(5) of AP Regulations, 2005, the LDI operators are required to deposit the determined APC for USF in the designated account as notified by PTA.

The LDI licenses were issued under the Telecom Act, 1996 by PTA. Most of the LDI licenses have already lapsed in July and August of 2024. The PTA had earlier intimated all LDIs that their licenses shall be renewed subject/clearance of outstanding dues. LDI operators did not pay the outstanding APC for USF amounts till today as, the issue is pending adjudication before the courts and in the presence of the stay orders granted by the courts in this regard.

The PTA has provided various options for settlement of the outstanding dues vide its letter dated 22-04-2024 and subsequent correspondences. The MoITT referred the said options to the Law and Justice Division for its opinion. The Law and Justice Division vide its letter dated 2-08.2024 advised the PTA to file application for vacation of the stay orders in the court.

Moreover, the Law and Justice Division was also of the opinion that none of the proposals of PTA provides for the conclusive resolution of the issue. The MoITT vide its letter dated 2-08-2024 informed the PTA to take necessary action pursuant to the opinion of the law and justice. The PTA in reply vide its letter dated 12-08-2024 has shown reservations on the opinion of Law and Justice Division and again has referred back the matter for conclusive decision for resolution of the issue.

In recent cases filed by six LDI operators, the High Court of Sindh has passed orders with the directions to PTA not to interfere in the operations of the LDI operators. In the case of Wateen Telecom, the court in its order dated 12-07-2024 has directed that the plaintiff’s application for renewal of license should be decided before 26-07-2024 without imposing the conditions of further deposit towards APC for USF.

Similar order has also been issued by the court in favour of Telecard vide judgment dated 25-07-2024.

Copyright Business Recorder, 2024