The Pakistan Telecommunication Authority (PTA) has recently denied media reports about the potential closure of automated teller machines (ATM) and a telecommunication blackout in the country due to the non-renewal of long-distance international (LDI) licences. The LDI operators, whose main function is to provide international incoming and outgoing telecom call services, are facing the expiration of their licences in July-August 2024.
Among the 10 operators whose licences are set to expire are Worldcall, Redtone, ADG-LDI, Telecard, Dancom, Wisecomm, Circlenet, Wateen, 4B-Gentel, and Multinet. Most of these operators have not yet paid the principal overdue for the Universal Service Fund (USF) in their 20-year licence contract, which will soon expire. The total outstanding principal amount reportedly stands at Rs24 billion, prompting the PTA to ask them to settle their dues in order to renew their licences for the next 20 years. The Ministry of Information Technology and Telecommunications has reconstituted a steering committee to address the issue.
Media reports earlier today indicated that the PTA expressed concern during a Friday meeting of the IT standing committee that the non-renewal of LDI licences could potentially have a significant impact on the country’s telecom sector. According to documents presented in the meeting, the impact could potentially affect service quality, business operations, and the broader economy. The PTA warned that around 50% of mobile traffic, 10% of internet traffic, banking services, ATM banking machines, corporate intranets, and international communication services and voice traffic could be disrupted if the licences are not renewed.
However, a statement issued by the authority today rejected what it termed as „fake news“ circulating in the media about the potential closure of ATMs. The PTA clarified that there is currently no issue of non-availability or closure of LDI networks that may potentially impact the IT or financial sector, including ATM networks. The operations of the expired LDI licensees are not suspended or shut down.
This development comes amid the Telecom Operators Association seeking the intervention of Prime Minister Shehbaz Sharif to address recent disruptions in the internet, which may cost the national economy billions of rupees. Internet users across Pakistan have reported significant drops in speed and disruptions to social media platforms, attributing the issues to intentional slowing down of digital services by the government. The government, however, has blamed these problems on VPNs and later attributed the slowdown to a fault in submarine cables.
In response to these disruptions, the telecom operators have highlighted the potential economic repercussions of the nationwide slowdown, estimating that it could cost Pakistan almost Rs12 billion annually. The association has urged immediate identification and rectification of the issues to prevent significant and long-lasting economic impacts.
In conclusion, while concerns have been raised about the potential impact of non-renewal of LDI licences on the country’s telecom sector, the PTA has denied reports of imminent closures of ATMs and telecommunication blackouts. The situation remains fluid, with ongoing discussions and efforts to address the issues and ensure the continuity of essential services.