Renewal of license fee: Jazz, Telenor deposit Rs 15.82b

Aftab Ahmed

Islamabad: Pakistan Telecommunication Authority (PTA) has received an amount of Rs15.82 billion (the equivalent of USD 103.17 million) from two technology firms- Telenor Pakistan and Jazz telecom on account of the second installment of License Renewal Fee.

It is going to despite this amount on account of the license fee for renewal of license in Federal Consolidated Fund (FCF) in line with practice under Pakistan Telecom Re-organization Act 1996.The two technology firms have deposited second installment. Jazz telecom had filed a case in court earlier on this issue.

PTA has so far deposited PKR 135.81 billion (the equivalent of USD 862.22 million) in the federal consolidate fund that it received as a license renewal fee from the telecom operators.

The regulator had received 50% of the total License Renewal Fee and the first installment of the same from three CMOS.

With the amount of the second installment received from two CMOs now, the total receipts on this count have amounted to Rs151.63 billion (USD 965.39 million) after two CMOS deposit second installments.

PTA is to receive the second license renewal fee installment of CMPAK (ZONG) that amounts to USD 54.086 shall be due in October 2021.

Technology firms’ licenses renewal process had kicked off after a long delay. They have been pursuing the government to issue policy guidelines to renew licenses of technology firms. But, there has been no quick response to issue policy directives for renewal of licenses.

Earlier, the government has formed a committee handle the specific case of policy directive to renew licenses of tech firms. Earlier, Asad Umar was heading the committee. However, after his removal, the government has reconstituted a committee and IT minister is heading it to deal with issue of renew licenses of technology firms.

PTA had hired WRAP International for proposing a framework for the renewal of telecom companies’ licenses through a transparent bidding process under the Public Procurement Regulatory Authority (PPRA) rules. However, consultant could not conduct a study to establish a framework due to change of government to renew licenses.

PTA had given licenses to technology companies including Telenor, Warid and Zong for 15 years and these were going to expire on May 25, 2019.

However, JAAZ Pakistan has moved a petition in Islamabad High Court now for renewal of licenses at old fee of US$291 million. Jazz telecom had been reluctant to pay fee government had demanded. However, Frequency Aviation Board has termed a white collar crime if government grants licenses to technology firms at old rates.

NAB inquiry against technology firms

National Accountability Bureau (NAB) is already launched investigation against Anusha Rahman, former Minister for Information Technology (IT), Ishaq Dar, former Finance Minister Ishaq Dar and other Pakistan Telecommunication Authority to management following alleged illegal award of contract of the Next Generation Mobile Services NGMS (3G/4G).

Earlier, Ministry of Information and Technology (IT) had submitted two proposals to the government relating to fee of license renewal. It said that the government after due consideration, may like not to issue a policy directive under section 8 of the act and Pakistan Telecommunication Authority shall renew the licenses of telecom firms under section 5(2) (a) of the act since there being no mandatory requirement of a policy directive by the federal government.

In second proposal, ministry of information technology had suggested that federal government after due consideration may issue a policy directive in view of the recommendations of PTA duty recommended by the Technical committee and directions of Inter-ministerial committee in terms of section 8(1) read with sections 8(2) and 22(3) of the Pakistan Telecommunication Authority (Re-Organization) Act 1996. However, government did not approve any proposal and formed a committee to deal with fee of renewal of licenses of technology companied.