The Pakistan Telecommunication Authority (PTA) has introduced a new ten-year Class Licence to encourage internet service providers (ISPs) to expand across Pakistan.
The licence, issued under Section 21 of the Pakistan Telecommunication (Re-Organization) Act, 1996, sets clear rules for ISPs. Companies can establish, maintain, and operate internet systems within their licensed districts. Operations outside these areas, including running network centers or providing wholesale bandwidth, require prior PTA approval.
Consumer protection and service quality are key priorities. The PTA requires ISPs to sign Service Level Agreements (SLAs) with access providers, uphold net neutrality, and adopt environmentally friendly practices. New licensees must launch services within one year and connect at least 100 broadband subscribers.
Financial obligations include an initial licence fee of Rs. 300,000 per district and an annual fee of Rs. 100,000, with a 10% yearly increase. Late payments incur penalties, and non-compliance may lead to licence suspension or termination.
PTA also mandates monitoring systems for traffic analysis, grey traffic prevention, and real-time reporting. The authority retains full inspection rights to ensure compliance with cybersecurity, national security, and service quality standards.
ISPs must maintain customer data confidentiality, use PTA-approved contracts, operate transparent billing systems, and maintain efficient complaint resolution mechanisms. Pricing freedom is allowed unless the PTA determines prices are unfair or a provider holds significant market power.
The ten-year licence is renewable, subject to compliance with PTA regulations, telecom laws, and government policies. Licence terms may be amended at renewal to address technological or market changes.
By introducing this framework, the PTA aims to increase internet penetration across Pakistan, improve service quality, and protect consumer rights while ensuring fair competition in the telecom sector.
In other related news also read PTA to Block Unregistered Mobile Phones in Pakistan
