Senate Committee Warns of Telecom Crisis Over LDI License Non-Renewal

In recent discussions within the Senate Standing Committee on Information Technology and Telecommunications, a critical issue has emerged regarding the non-renewal of Long Distance International (LDI) licenses in Pakistan. The licenses, which are essential for the operation of various telecom services, are currently facing non-renewal due to outstanding dues amounting to approximately Rs 78 billion. This situation poses a significant threat to the telecom ecosystem, potentially disrupting service quality, business operations, and the overall economy.

The implications of not renewing these licenses are severe. It is estimated that around 50 percent of mobile traffic, 10 percent of internet traffic, and 40 percent of ATM banking machines could be rendered inoperable. This would not only affect individual users but also businesses that rely heavily on these services for their daily operations.

During the committee meeting, chaired by Palwasha Mohammad Zai Khan and later by Dr. Afnan Ullah Khan, the Pakistan Telecommunication Authority (PTA) presented data indicating that there are 13 LDI licensees awaiting renewal. Out of these, only four licenses have been processed, while the remaining nine are tied up due to outstanding dues related to the Annual License Fee (ALF) for the Universal Service Fund (USF).

The companies most affected include Wateen, Multinet, and Worldcall, which have extensive fiber optic networks crucial for maintaining connectivity. The PTA officials highlighted that the suspension of operations for these companies would lead to a significant degradation of network services, with restoration taking considerable time.

For instance, Wateen Telecom operates a vast network comprising 21,338 km of Long Haul and 22,000 km of Metro fiber optics, leased to major mobile operators like Telenor and Jazz. The non-renewal of LDI licenses would severely impact mobile services, leading to many towers being out of service and affecting banking services as well.

Moreover, the disruption of international incoming traffic is another critical concern. If the LDI licenses are not renewed, this traffic will need to be rerouted to other operators, which could lead to service degradation and interruptions in international communication services. This situation could also affect connectivity for operators in neighboring Afghanistan, who rely on these routes.

In addition to the telecom issues, the committee also discussed significant legislative matters, including the Personal Data Protection Bill, 2023, and the Regulation of Artificial Intelligence Bill, 2024. The Personal Data Protection Bill aims to safeguard citizens' personal data in the digital age, aligning with international standards like the European General Data Protection Regulation (GDPR). After multiple revisions and consultations with stakeholders, the bill is expected to be finalized by December 31, 2024.

As the committee continues to evaluate these pressing issues, it is clear that the non-renewal of LDI licenses could have far-reaching consequences for Pakistan's telecom sector and economy. Stakeholders must come together to address the outstanding dues and ensure the continuity of essential services. The future of Pakistan's digital landscape depends on timely and effective solutions to these challenges, highlighting the need for a collaborative approach to safeguard the interests of all parties involved.