AGP lends conditional support to military-run communication entity

The Attorney General for Pakistan (AGP) on Monday gave its conditional opinion in favor of issuing license to the military-run Special Communication Organization (SCO) to operate on commercial basis only if it does not enter into any competition with rest of the companies. The meeting of the sub-committee on delegated legislation in its meeting was briefed by Attorney General of Pakistan Aushtar
Ausaf and officials from Ministry of Law and Justice as well as Ministry of Information and Telecommunication on the issue of enhancement of SCO's area of operation. The Law Ministry is backing SCO, opining that the Competition Act 2010 and the Telecom Re-organization Act 1996 do not bar it from operating on commercial basis throughout the country.
However, the Ministry of Information Technology and Telecommunication has disputed the Law Division's opinion while saying that it would be the violation of shareholder agreement with Etisalat and the government of Pakistan can face serious consequences in terms of financial as well as severe repercussions for the overall telecom sector.
On the question whether the government of Pakistan will be in position to defend its case if the issue was taken to international arbitration by Dubai-based Etisalat, the AGP said: "I am confident that we can defend our case if it is taken to the arbitration."
In written opinion submitted to the committee, the AGP added: "In my considered opinion as long as SCO remains within the confines of its mandate and establishes a regime which caters for strategic and security concerns of Pakistan, it will not fall foul of the covenant made between Etisalat and the government of Pakistan."
"I tend to agree that the restrictive covenants may not stand in the way of grant of license but in order to avoid any litigious challenges, it will be better and a safer course for SCO to incorporate a separate legal entity for the purposes of carrying out its operations," the AGP office further stated.
Since the representatives of SCO have categorically stated that they have no intention of competing with Etisalat, the AGP added it would be prudent if such an undertaking is placed on record for processing the request for grant of license.
To conclude, the AGP stated: "In my considered opinion subject to meeting the criteria there is no impediment in the way of processing an application pending with the Pakistan Telecommunication Authority for grant of a license which would further the cause of national security provided it is confined to the business being carried out by the SCO." However, the Ministry of IT desired that the matter is highly important and therefore it requires more time for deliberations which the committee accepted and gave a week to submit its reply.
The DG SCO and other officials of the SCO said that the SCO will remain stuck to the mandate and would not enter into any competition. They also stated that the SCO would not request for getting license of landline communication. The committee decided to take further input from stakeholders including Pakistan Telecommunication Authority (PTA) in its next meeting to be convened in a few days.