PTA Warns of Potential ATM Service Disruptions Due to License Renewal Dispute

The Pakistan Telecommunication Authority (PTA) has sounded the alarm over the potential disruption of mobile, internet, and ATM services in the country due to the non-renewal of licenses for Long-Distance International (LDI) operators. According to a recent PTA document, as much as 50% of mobile traffic and 10% of internet traffic are at risk, with additional concerns about mobile towers going out of service and 40% of ATMs ceasing operations.

The underlying issue stems from a prolonged dispute between telecom companies and the Ministry of IT over the payment of outstanding dues. The PTA has made it clear that license renewals will only proceed once these dues are settled. However, the ministry’s steering committee has yet to devise a concrete plan to address the payment issue.

The situation has already escalated, with licenses for 3-4 LDI companies having expired, while others are set to expire in the coming months. Some companies have resorted to legal action to keep their operations running. The PTA’s document reveals that nine telecom companies collectively owe the Ministry of IT Rs. 24 billion, alongside Rs. 54 billion in late payment surcharges.

Adding to the crisis, the country is already grappling with internet service disruptions linked to the implementation of internet firewalls designed to monitor and filter online content. While these systems have been touted as necessary for controlling objectionable material, they have also sparked concerns about their broader impact on internet services.