Pay $450mln renewal fee or licences expire on Aug 21, PTA orders Jazz and Telenor

Pakistan’s biggest mobile network Jazz, and the country’s second-largest telecoms firm, Telenor, are challenging in court the license renewal process after government’s last-minute price hike for a long-term mobile operating license renewal. (AFP)
Updated 01 August 2019
Follow

Pay $450mln renewal fee or licences expire on Aug 21, PTA orders Jazz and Telenor

  • Pakistan’s biggest and second-largest telecom firms have taken the government to court over the renewal process and price
  • Companies believe licence price hike goes against a 2004 agreement and have challenged the PTA for setting the price in USD

ISLAMABAD/KARACHI: The Pakistan Telecommunication Authority has informed the country's biggest mobile network, Jazz, and second-largest telecoms firm, Telenor, that their licences will stand expired on August 21 if the companies do not agree to pay a renewal fee of $450 million as per the PTA’s terms and conditions, PTA and Jazz officials said this week.
Pakistan’s telecoms market was deregulated in 2004 and foreign firms such as Jazz have invested heavily. But now the company fears the new renewal fee, which it says goes against an agreement struck in 2004, will pose a significant risk to the connectivity of millions of Pakistanis and jeopardize a growing digital economy.
According to PTA figures as of April 2019, Pakistan has 161 million cellular subscribers, with 59.2 million using Jazz and 44.8 million on Telenor.
“The decision by PTA to expire the licences of operators on August 21, 2019, if not renewed on their terms, is indeed concerning,” Ali Naseer, Chief Corporate and Enterprise Officer at Jazz, told Arab News in an interview this week. “This can potentially disrupt services for millions of Pakistani cell phone users.”
A Telenor spokesman did not respond to repeated calls for comment but a PTA directive to Telenor dated July 22 and seen by Arab News orders the company to pay the $450 million renewal fee by the August 21 deadline and on the PTA’s terms, or risk discontinuation of operations.
Mobile technology is the primary means of communication for millions of Pakistanis. Recent intelligence research by the GSM Association, a trade body that represents the interests of mobile network operators worldwide, estimated the total economic impact of mobiles on Pakistan’s economy was $17 billion, or 5.4% of GDP.
In 2017, total direct tax and fee payments by the mobile sector were estimated at $950 million, 29% of operator revenue, and the wider mobile ecosystem contributed a total of $1.9 billion in direct and indirect taxes in 2018, as per the GSM Association. A tax directory issued by the Federal Board of Revenue for tax year 2017 listed Telenor and Jazz among the country's top corporate taxpayers.
Pakistan’s government is currently struggling to lift revenues, cut ballooning public debt and raise foreign reserves. A recently signed loan agreement with the International Monetary Fund is aimed at shoring up fragile public finances and strengthening a slowing economy.
“It’s important that Pakistan doesn’t ... place gaining inflated revenues from spectrum licences above the connectivity of its citizens,” Brett Tarnutzer, Head of Spectrum at GSMA, said. “Spectrum prices and taxes should be set at a sufficiently low level that allows operators to deliver affordable services and deploy mobile broadband widely.”
“NEGLIGENCE AND INCOMPETENCE”
The licences of both Jazz and Telenor were originally set to expire on 25 May. In early May, the two companies took PTA to court after the Authority asked them to pay a $450 million renewal fee, more than double the dollar price at which the operators originally acquired licences at auction in 2004.
At the heart of the court challenge between the telecom firms and the Pakistan government is a 2015 telecommunications policy that replaced a 2004 version and which Jazz and Telenor say outlined the terms and conditions for auctions of new spectrums but did not lay down any guidelines regarding renewals.
Globally, licence renewal terms are to be communicated to operators 18 months before a licence is due to expire. According to PTA documents seen by Arab News, the Authority came up with new terms on May 9, a little over two weeks before the May 25 deadline and after Jazz and Telenor had taken the matter to court.
“That is the first example of negligence or incompetence because now, in 2019, when the renewals were due, we found ourselves in a situation where there is no framework,” Naseer said. “Had they [government] come out with a reasonable policy, we would have accepted that because we want predictability. Jazz is now 25 years in the market, we are one of the largest foreign direct investors in the country, we’re not going anywhere in a hurry. We are beholden to the country and we want to work and progress.”
Jazz also says that it communicated its intention to renew its licence 30 months prior to the May 25 expiry deadline, as specified in the licence terms. PTA was then required to inform the operators about the renewal terms and conditions within three months of receiving their intent for renewal, which the Authority did not. In the absence of a new set of guidelines formulated and communicated within the deadline as set by the law and the licence terms, Jazz and Telenor argued in court that the 2004 licence terms and conditions should continue to apply to the latest renewal.
After several hearings, the Islamabad High Court remanded the case back to PTA last month, asking the Authority to review the terms of renewal with a “fresh eye.” After quasi-judicial hearings for both Jazz and Telenor, PTA concluded on July 22 that the telecom operators would have to pay the set price of $450 million by August 21.
PTA directives to Jazz and Telenor seen by Arab News said payment terms for the $450 million renewal fee would be 100% upfront or 50% upfront with the remaining 50% paid in five equal annual installments on the London Interbank Offered Rate, plus 3%. The payment could be made in USD or its equivalent in Pakistani rupees, calculated at the market exchange rate at the time of payment.
“We are disappointed that PTA has not been able to see our point of view on these renewals,” Naseer said. “We are committed to endeavour towards improved connectivity and an enabling digital environment in Pakistan.”
A PTA spokesman declined repeated requests for an interview and only referred to public documents about the licences.
“EVALUATING ALL OPTIONS”
The decision by Pakistan’s cash-strapped government to set the new renewal fee in US dollars and not in local rupee currency, which has lost about 40 percent against the dollar in the last 20 months, is another major sticking point for the mobile operators.
The 2004 auction for a 15-year licence cost $291 million, equivalent to Rs17 billion at the 2004 exchange rate. But with the rupee plunging to record lows against the dollar, Jazz now faces paying Rs67 billion for $450 million, a 265% increase compared to what Jazz paid in 2004.
Naseer said the company earned and charged customers in local currency, not dollars, and thus setting the renewal fee in dollars was “unsound.”
“We believe in Pakistan and if word gets out that existing investors are being treated like this it makes it very difficult for us to say ‘Pakistan is open for business’,” Naseer said.
Jazz says it is now evaluating the option of renewing its licence at the PTA’s asking price, letting it expire or filing an appeal with the Islamabad High Court before August 22. Telenor’s options are similar.
“Honestly, at this stage we are evaluating all our options,” Naseer said. “Nothing has been ruled out.”


Three Pakistani soldiers, 19 militants killed in clashes in restive northwest

Updated 07 January 2025
Follow

Three Pakistani soldiers, 19 militants killed in clashes in restive northwest

  • The clashes took places in Peshawar, Mohmad and Karak districts of Pakistan’s northwestern Khyber Pakhtunkhwa province
  • Islamabad has frequently blamed the surge in militancy on militants operating out of Afghanistan, Kabul denies allegation

ISLAMABAD: Three Pakistani soldiers and 19 militants were killed in separate clashes in Pakistan’s northwestern Khyber Pakhtunkhwa (KP) province, the Pakistani military said on Tuesday.
Security forces killed eight militants in an intelligence-based operation in Matani area of KP’s Peshawar district, according to the Inter-Services Public Relations (ISPR), the military’s media wing.
Another eight militants were killed in an operation in the Mohmand district. A third engagement resulted in the killing of three militants and three soldiers in KP’s Karak district.
“Sanitization operations are being conducted to eliminate any other Kharji [militant] found in the area,” the ISPR said in a statement.
Pakistan has witnessed a dramatic uptick in militant attacks in recent months, particularly in KP and the southwestern Balochistan province.
In 2024 alone, the military reported that 383 soldiers and 925 militants were killed in various clashes.
The Pakistani Taliban, or the Tehreek-e-Taliban Pakistan (TTP), are one of the most prominent militant groups that have regularly targeted security forces in KP along with separatist militants operating in the restive southwest.
Islamabad has frequently accused neighboring Afghanistan of sheltering and supporting militant groups that launch cross-border attacks. Afghan officials deny involvement, insisting Pakistan’s security issues are an internal matter of Islamabad.


Ex-PM Khan’s party demands ‘unfettered’ access to him for talks with Pakistan government to succeed

Updated 07 January 2025
Follow

Ex-PM Khan’s party demands ‘unfettered’ access to him for talks with Pakistan government to succeed

  • The government last week said it had facilitated meetings with Khan, but his party remained ‘indecisive’ about formalizing its demands
  • The two sides have held two rounds of negotiations since last month to end a political deadlock, but have failed to make a headway

ISLAMABAD: Former prime minister Imran Khan’s party on Tuesday demanded the government provide it “unfettered” access to the jailed ex-premier, saying it was the only way to demonstrate “seriousness” to end an ongoing political impasse in the country.
Khan’s ouster in a parliamentary no-trust vote in 2022 has plunged Pakistan into a political crisis, particularly since he was jailed in August 2023 on corruption and other charges. His Pakistan Tehreek-e-Insaf (PTI) party has regularly held protests to demand his release, with many of the demonstrations turning violent.
The two sides kicked off negotiations last month and have held two rounds of talks to end the political deadlock, but have failed to make a headway. The PTI and the government’s last round of talks on Jan. 2 ended inconclusively after Khan’s party demanded more time to meet and consult the ex-PM before submitting their demands in writing.
A government spokesperson last week said the government had facilitated Khan’s party by arranging its meetings with the ex-premier in jail, but the PTI remained “indecisive” about formalizing their demands despite written assurances made in joint declarations issued after talks between both sides.
“In the second and last session of our negotiations committee, we had clearly conveyed to the government that our unmonitored, unfettered meeting be arranged with [former] prime minister Imran Khan, in which there is no monitoring in that room,” PTI leader Omar Ayub said at a presser on Tuesday, adding their meetings with Khan were held in a small room, with cameras and other monitoring devices installed.
“In that environment, discussions can’t be held freely.”
Ayub said the government committee had promised to facilitate such a meeting, but they had been no development since.
“We have not received any information [about the meeting] so far from the government,” he said, adding the government’s arrangement of a meeting with Khan in an “unfettered environment, without restrictions,” would demonstrate its seriousness for talks.
Last week, Senator Irfan Siddiqui, a member of the government’s negotiation committee, said the talks could encounter “serious hurdles” due to the PTI’s failure to submit its demands in writing at the next meeting.
“If the PTI does not submit its demands in writing as promised, the negotiation process may face serious hurdles,” Siddiqui was quoted as saying by the state-run Radio Pakistan broadcaster.
“Even after 12 days, no significant progress has been made.”
The two sides held the first round of talks on Dec. 23. Khan’s party has previously stated two demands: the release of all political prisoners and the establishment of judicial commissions to investigate protests on May 9, 2023, and Nov. 26, 2024, which the government says involved Khan supporters, accusing them of attacking military installations and government buildings.
The talks between the two sides opened days after Khan threatened a civil disobedience movement, and amid growing concerns he may face trial by a military court for allegedly inciting attacks on sensitive security installations during the May 9, 2023 protests.


PM Sharif, Gen. Munir among several Pakistanis make it to list of 500 Most Influential Muslims for 2025

Updated 07 January 2025
Follow

PM Sharif, Gen. Munir among several Pakistanis make it to list of 500 Most Influential Muslims for 2025

  • The list includes honorary mention of former PM Imran Khan as well as several Pakistani religious scholars
  • Malala Yousafzai, Sharmeen Obaid-Chinoy, Abida Parveen and Prof. Dr. Adibul Hasan Rizvi have also been named

ISLAMABAD: Prime Minister Shehbaz Sharif, Army Chief Asim Munir, former PM Imran Khan, Nobel laureate Malala Yousafzai, religious scholar Mufti Taqi Usmani and several other Pakistanis have been listed among 500 Most Influential Muslims in 2025.
‘The Muslim 500: The World’s 500 Most Influential Muslims’ is an annual publication, first published in 2009, that ranks the most influential Muslims in the world. The publication is compiled by the Royal Islamic Strategic Studies Center in Amman, Jordan.
It ascertains the influence some Muslim figures have on the Ummah culturally, ideologically, financially, politically or otherwise to make a change that will have a significant impact on Muslims around the world.
This year, the publication has named several Pakistanis, from civilian and military rulers to philanthropists and people known for their exceptional work in various disciplines of life.
“Shehbaz Sharif became the 24th Prime Minister of Pakistan in March 2024, having served as the 23rd Prime Minister (2022-23) after a no-confidence motion against former Prime Minister Imran Khan,” the publication wrote about the Pakistan premier.
“Sharif is the brother of former Prime Minister Nawaz Sharif and has himself had a long political career, being the President of the Pakistan Muslim League and serving as the Chief Minister of Punjab three times (1997, 2007 and 2013).”
The list included the name of Pakistan’s Army Chief General Asim Munir.
“A descendant of a religious and scholarly family, Asim is also known as the first army chief in the history of Pakistan to be a Hafiz Qur’an (memorized the entire Qur’an),” the publication wrote.
“He served as chief of both premier military intelligence agencies of Pakistan.”
The Muslim 500 had an honorary mention of former PM Imran Khan, who has been in jail since August 2023 on a slew of charges.
“Imran Khan became the Prime Minister of Pakistan in 2018 amid huge expectations that he could bring the country forward on issues of governance, accountability and reduction of corruption. He endured a tough time before being ousted in April 2022 through a no-confidence motion,” it said.
“Khan still maintains massive popular support in the country as well as with the large and powerful Pakistani diaspora.”
The publication included names of Pakistani religious figures Mufti Muhammad Taqi Usmani, Maulana Tariq Jameel, Maulana Nazur ur-Rahman and Muhammad Ilyas Attar Qadri among the most influential Muslims around the world.
Other Pakistanis mentioned on the list were Nobel laureate Malala Yousafzai, Sharmeen Obaid-Chinoy, an internationally acclaimed journalist, filmmaker and activist, ‘Queen of Sufi mystic singing’ Abida Parveen, Na’atkhuwan Owais Raza Qadri and humanitarian Professor Dr. Adibul Hasan Rizvi.
“Dr. Rizvi is one of Pakistan’s leading humanitarians, having established the largest free health organization in Pakistan. He works as a doctor and an administrator at SIUT (Sindh Institute of Urology and Transplantation) in Karachi, which was founded in 1971 as an eight-bed unit but is now the largest health organization in Pakistan,” the publication wrote.
“SIUT provides free and comprehensive services in urology, nephrology, transplantation, and liver-related diseases. He is the recipient of many awards for his life’s work.”


Pakistan fined, docked 5 points for slow over rate against South Africa

Updated 07 January 2025
Follow

Pakistan fined, docked 5 points for slow over rate against South Africa

  • Pakistan was ruled to be five overs short of target after time allowances were taken into consideration
  • South Africa swept Pakistan 2-0 in the series with a 10-wicket win inside four days in the second Test

DUBAI: The ICC has fined Pakistan players 25 percent of their match fee and also docked the team five World Test Championship points for maintaining a slow over-rate against South Africa in the second Test at Newlands.
South Africa, which will take on Australia in the WTC final at Lord’s in June, swept Pakistan 2-0 in the series with a 10-wicket win inside four days in the second Test.
The ICC said in a statement that match referee Richie Richardson of the West Indies imposed the sanction after “Pakistan was ruled to be five overs short of the target after time allowances were taken into consideration.”
According to the ICC code of conduct, players are fined five percent of their match fee for every over their side fails to bowl in the allotted time. The teams are also penalized one WTC point for each over short.
The ICC also said that Pakistan captain Shan Masood accepted the proposed sanction, so there was no need for a formal hearing.
Pakistan is at No. 8 in the points table just above last-placed West Indies.


Pakistan to hire consultant in few weeks for regulatory framework on satellite-based Internet

Updated 07 January 2025
Follow

Pakistan to hire consultant in few weeks for regulatory framework on satellite-based Internet

  • Pakistan, a country of more than 240 million, has witnessed up to 40 percent drop in Internet speeds in the last few months
  • The country is in talks with Elon Musk’s Starlink satellite Internet provider, plans to link up with 2Africa submarine cable

ISLAMABAD: Pakistan will be hiring a consultant to finalize regulations regarding satellite-based Internet services in the country, its information technology (IT) ministry said on Monday.
The statement came after State Minister for IT Shaza Fatima Khawaja chaired a meeting in Islamabad to review progress on licensing of Starlink Services, owned by US billionaire Elon Musk, and regulatory frameworks for Low Earth Orbit (LEO) satellites.
Pakistan, a country of over 240 million, has witnessed up to 40 percent drop in Internet speeds in the last few months, according to the Wireless and Internet Service Providers Association of Pakistan (WISPAP).
The drop came as the federal government last year moved to implement a nationwide firewall to block malicious content and protect government networks from cyberattacks, with IT associations saying the slowdowns have resulted in significant losses.
“During the meeting, it was decided that consultant hiring will be completed in a few weeks, for regulations,” the Pakistani IT ministry said.
“The minister emphasized the need for aligning Pakistan’s policies with global standards to unlock satellite technology’s full potential for national growth.”
Pakistan suffered a total of $1.62 billion losses due to Internet outages and social media shutdowns in 2024, according to a report by global Internet monitor Top10VPN.com, surpassing losses in war-torn countries like Sudan and Myanmar.
The report, released on Jan. 2, said Pakistan experienced 9,735 hours of Internet disruptions that affected 82.9 million users, with elections and protests cited as the primary causes.
The IT state minister last month confirmed that Pakistan was in talks with Musk’s Starlink to bring satellite Internet services to the country.
“Discussions [at Monday’s meeting] focused on expediting these processes to ensure a robust regulatory framework for LEO satellites, enhancing connectivity, and driving technological innovation,” the IT ministry added.
Pakistan also plans to enhance its Internet speeds and connectivity by linking up with the 2Africa submarine cable later this year, according to the Pakistan Telecommunications Authority (PTA), which regulates Internet in the South Asian country.
2Africa, one of the world’s largest submarine cable systems, spans 45,000 kilometers and connects 46 locations across Africa, Europe and the Middle East, offering speeds of up to 180 Tbps.