Friday, January 4, 2008

PTA Terminates License of Instaphone

Pakistan Telecommunication Authority (PTA) has, with immediate effect, terminated the license of M/S Pakcom (Instaphone) on account of Company’s failure to pay its outstanding dues. The payable amount would be recovered under Section 30 of the Pakistan Telecommunication (Re-organization) Act. The Authority has issued a detailed determination in this regard.

According to details, M/S Pakcom’s license was renewed on April 19, 2005 for another term of 15 years against the price of US$ 291 Million payable in installments as per the license conditions. The licensee failed to follow the payment schedule provided in its renewed license. The licensee, through its representative from time to time, requested the Authority to allow time to make the outstanding payments. Inspite of every concession, to the licensee, in terms of time and its persistent failure to make the payments, action, including show-cause, was initiated as per Section 23 of the Act, which was neither satisfactorily replied nor outstanding dues paid.

In the final hearing on November 29, 2007 the representative of M/S Instaphone requested for further time to make the payments but without any cogent evidence or specific date for the same. The Authority’s considered opinion is that the licensee’s contravention of the terms and conditions of the license regarding its financial obligations is grave and persistent, resulting in the termination of its license. PTA has also directed Frequency Allocation Board to immediately withdraw its frequency spectrum assigned to M/S Instaphone.

(Khurram Ali Mehran)

Deputy Director (PR)


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