Nayatel has emerged victorious in its case against the Army Heritage Foundation (AHF) regarding Right of Way (ROW) charges. The Cabinet Division issued an order in favor of Nayatel, mandating the standardization and uniform application of ROW charges.
The dispute revolved around the fees imposed by the AHF for Nayatel’s infrastructure deployment in Ayub National Park. In 2018, Nayatel and AHF entered into an agreement, under which Nayatel paid Rs. 25,000 per month to AHF and provided complimentary and subsidized internet connections. However, after the agreement expired on February 28, 2021, AHF demanded a tenfold increase in the ROW fee to Rs. 250,000 per month, along with 11 additional free connections and free future connections. Additionally, AHF requested the installation of optical fiber cables and free CCTV cameras.
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Faced with these demands and threats of network dismantling by AHF, Nayatel approached the Lahore High Court, Rawalpindi Bench. The court restrained AHF from taking any coercive measures. Notably, Nayatel continued paying the ROW fee until February 2024, which was already higher than the approved rates for Cantonment Boards.
The Cabinet Secretary emphasized that AHF has no statutory right to charge fees beyond reasonable administrative expenses and must adhere to the Telecom Act and ROW Policy Directive, which govern telecom operations in Pakistan. AHF’s demand of Rs. 250,000 per month was deemed exorbitant and unjustifiable. The Cabinet Division order, referencing a previous notification from December 22, 2021, determined that the fee for ROW through Ayub National Park should be the same as that for the Chaklala Cantonment Board area. This standardization ensures fair and consistent application of ROW charges.
This ruling sets a precedent for future ROW-related disputes and is expected to eliminate arbitrary fee structures imposed by entities that attempt to hinder infrastructure development.
