Key conditions for licence renewal: Deadlock between mobile operators, PTA persists

The deadlock between Pakistan Telecommunication Authority (PTA) and mobile operators on quality of service and rollout obligations - two integral parts of licence renewal - persists, as the latter have linked them with the quantum of licence renewal fee, it is learn. While renewing the licence, the PTA in exercise of its vested right, telecom consumers'' interest as envisaged under the section 4(1) (m) of the act and for the proper conduct of telecommunication services, has decided to enhance the quality of service and rollout targets in order to meet the parameters of quality of service so as to bring it in harmony with the international best practices.
Further, the licence is technology neutral; therefore, the licensee is entitled to deploy any latest technology for provision of the licensed services. Accordingly, the necessary changes in the terms of licences have been incorporated as shared with the licensees. Such changes in quality of service and rollout obligations will certainly improve the key performance indicators (KPI) of the licensees.
The official sources said that however, the licensees have raised various concerns over the terms and conditions dealing with enhanced quality of service and rollout obligations. In this respect, the licensees'' persistent stance, inter alia, has been that the issues of quality of service and rollout obligations are dependent on the quantum of renewal fee of licences. Even in the recent meeting on this issue, the licensees reiterated their earlier stance that without first determination of renewal fee, the terms and conditions pertaining to quality of service and rollout obligations cannot be finalised.
The Authority is of the view that although linking the issue of quality of service and rollout obligations with the renewal fee is not a rational approach, yet to avoid any deadlock and give fair treatment on this issue, the licensees'' concerns on terms and conditions regarding enhanced quality of service and rollout obligations are still under consideration with the Authority and the same will be finalised in consultation with the licensees.
The PTA has rejected mobile operators'' apprehensions relating to the price of mobile licence renewals and passed an order while fixing the fee for license renewal at $39.5 million per MHz for frequency spectrum of 900 MHz and $29.5 million per MHz for frequency spectrum of 1800 MHz. However, mobile operators have concerns over the fee price.
The PTA said that it passed the order in compliance with the court''s order dated 21-06-2019 passed by the Islamabad High Court, where it (PTA) was asked to make a decision and announce terms for renewal of telecom licences.
The PTA has directed the operators to pay their licence fee before August 21, 2019 or their licences will be termed expired and they will not be allowed to provide telecom services after the deadline.