Chaos in Telecom sector due to delay in license renewal

Licenses are required to be renewed after a certain period of time. Tension is building up among mobile service companies as the expiry date of their licenses is around the corner. Network operators are facing serious problems because of the renewal policy. Government have delayed the renewal by over a year now.

Source:ProPakistani

This delay can result in serious problems in future and will have a grave impact on phone users.

The telecom company plays a major part in pakistan’s economy. Be it foreign investments in billions of Dollars or providing with countless jobs, this sector has played a vital role in country’s progress. Now when government has launched its purpose of “Digital Marketing” it is important to settle the affairs of telecom sector to acheive the supreme growth.

Telecom companies revealed that they are supposed to pay the renewal fees in US Dollars. their revenue is in pakistani rupee but they are demanded to pay the fees in dollars which is holding back their cash flows. the reason is the devaluation of pakistani currency against dollars.

Since the operators earn in pakistani rupee, they requsted that government should consider the use of local currency as fees for lisence renewal.

May 2019: license of two telecommunication companies being expired

In 2004, warid, telenor, jazz, and zong issued licences for 15 years as per international standards. Licenses of warid and telenor which were joined by jazz are going to expire this May while Zongs license will expire in following October.

Now the teledensity is 84% with inactivity while the data is increasing because of 3G and 4G. But only 30% of population is getting advantage by this which means there is huge possibility in this sector.

To solve this issue pakistan telecommunication authority should announce renewal license policy after taking consideration of all the companies affected by it.

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