PTA’s Unauthorized Changes to LDI License Clauses Raise Transparency Concerns
The Auditor General of Pakistan has highlighted serious concerns regarding the Pakistan Telecommunication Authority (PTA), which allegedly made unauthorized modifications to Long-Distance and International (LDI) license clauses without securing the required federal government approval. This development has ignited a debate about transparency and adherence to legal procedures within the country’s telecom regulatory framework.
The controversy centers around the introduction of new clauses—specifically clauses 3.2.6 to 3.2.8—under the “Network Rollout Obligations” section of the LDI license issued to M/s Zeta Technologies (Pvt.) Ltd. on January 5, 2023. According to the Auditor General, these changes were made in direct violation of the Telecommunication Policy 2015 and the De-Regulation Policy 2003. These policies clearly stipulate that any amendments to licensing terms require approval from the federal government and must involve consultation with relevant stakeholders.
READ MORE: “AGP Flags Major Irregularities, Illegal Spending, and Anti-Competitive Practices in Defense Sector”
The Telecommunication Policy 2015, particularly Rule 5.2.3, mandates that any changes to the licensing regime be approved by the federal government and involve sector stakeholders in the decision-making process. Additionally, Rule 4.2.1 (b) of the De-Regulation Policy 2003 states that licensees are permitted to lease infrastructure from PTCL or other owners on a non-discriminatory basis, with long-term leases allowed in place of ownership. However, the PTA’s unilateral alterations to the LDI license template appear to bypass these essential procedural safeguards.
The Auditor General’s report underscores the potentially detrimental impact of these unauthorized changes on the telecom sector, particularly concerning infrastructure providers. The modifications may infringe on the rights of licensees as outlined in Sections 5(b) and 6(a) of the Pakistan Telecommunication (Re-organization) Act, 1996, which emphasize the enforcement, monitoring, and protection of licensee rights.
This issue was first raised with PTA management and the Principal Accounting Officer (PAO) in November 2023. At that time, PTA defended its actions, claiming that the changes did not alter the scope of the license or the overall licensing regime. The authority argued that the modifications were intended to promote the modernization of telecommunication systems by increasing the percentage of fiber-to-the-tower/site (FTTT/FTTS) infrastructure.
However, the Auditor General found this explanation insufficient, stressing that such changes should have been subjected to proper consultation and federal approval. The matter was subsequently brought before the Departmental Accounts Committee (DAC) on December 20, 2023. The DAC directed PTA to reconsider the changes in collaboration with the Cabinet Division and to have them verified by the Audit. Despite these directives, no further progress has been made, leaving the issue unresolved and raising serious questions about the transparency and legality of PTA’s actions.
