Telecom services: SCO faces Rs one billion loss per year due to limitations

01 Apr, 2017

The Special Communications Organisation (SCO) is facing an annual loss of Rs 1 billion due to limitations of providing telecom services in Azad Jammu Kashmir (AJK) and Gilgit-Baltistan (GB) only. The SCO officials informed the subcommittee of Senate Standing Committee on Delegated Legislation that SCO was set up to provide telecom services in AJK and GB and it is providing telecom services at 141 locations in AJK and 85 in Gilgit-Baltistan. Under the law, the SCO can only operate in these areas due to which the institution is facing a loss of Rs 1 billion annually, they explained.
The SCO officials said private companies are also allowed to provide telecom services in AJK and GB due to which the SCO is unable to utilise its full traffic. The SCO should be allowed to operate across the country to compete with international companies and generate revenue, they added.
They said the SCO is ready to provide 4G services and, therefore, free of cost licence should be provided to it. About China-Pakistan Economic Corridor (CPEC), they said they have completed 60 percent work on laying fibre optic from GB to Islamabad. The committee which met with Senator Muhammad Daud Khan Achakzai in the chair, recommended allowing the SCO to operate across the country in order to play its role in the country development.
Achakzai questioned if the domain of the SCO is only limited to AJK and GB then under which law it was allowed to work up to Islamabad. The committee also discussed proposed amendment in Pakistan Telecom (Re-organisation) Act, 1996. The SCO officials requested amendment in section 40 of Pakistan Telecom (Re-organisation) Act, 1996.

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