Renewal of Mobile Cellular Licenses Needs Regularity Frameworks

With the aim of bringing some investment opportunities in the country, PM Imran Khan has formed a committee that is assigned the task to monitor and evaluate the procedure of the renewal of mobile cellular licenses of three mobile companies that will be generating a huge amount of revenue.

It is necessary to come up with a license renewal policy as it will save the users from a sudden decline in services quality. So, these policies need to be made clearer and the renewal process is better before the expiry date. This thing increases confidence and regularity in the system.

Three mobile operators Telenor, Warid and Zong got their licenses back in 2004 for 15 years. So, ultimately, this is their expiry year. Warid and Zong have confirmed for renewal with PTA without any condition whereas, Telenor has asked for some amendments in terms and conditions.

Govt. of Pakistan renewed the license of Ufone network in 2014 in $291 million with interest-free installment for maintaining a balance. Now, it has been recommended that all of the mobile operators’ licenses will be renewed according to the same terms.

There is a situation of uncertainty and ambiguity prevailing in the market because of the delay in the announcement of policy guidelines by government authorities. This thing can bring huge chaos by affecting consumers. It is said by the experts that renewal policies and guidelines are supposed to be finalized almost a couple of years before the expiry. If Telenor PK and Warid get failed in renewing their license within the due date i.e., May 2019, then they may come across with some functional problems in their system.

The Bottom Line

It is important for the government, policymakers and mobile operators to address the issue of license renewal with regularity frameworks. As technology is getting evolved, new trends and developments need to be adopted for defining the renewal of mobile cellular licenses.

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