PTA Warns of Potential ATM and Service Disruptions Amid Telecom Licensing Issues in 2024

The Pakistan Telecommunication Authority (PTA) has issued a grave warning that the ongoing dispute over the renewal of Long-Distance International (LDI) operators’ licenses could lead to widespread disruptions across the country, impacting mobile and internet services as well as ATM operations.

According to a recent PTA document, the non-renewal of LDI licenses could severely disrupt the nation’s telecommunications infrastructure. Specifically, the document highlights that 50% of mobile traffic and 10% of internet traffic are at risk of being affected due to this issue. Additionally, the document warns that a significant number of mobile towers could go offline, potentially causing 40% of ATMs to stop functioning. Such a scenario could create severe inconveniences for millions of Pakistanis who rely on these services for daily transactions and communication.

The crisis stems from an unresolved dispute between telecom companies and the Ministry of Information Technology (IT) over the payment of substantial dues. The situation is further complicated by the Ministry’s steering committee’s failure to devise a clear plan for the payment of these outstanding amounts. Consequently, the PTA has tied the renewal of licenses to the settlement of these dues, putting the future of several telecom companies in jeopardy.

Compounding the issue is the expiration of licenses for 3-4 LDI operators, with more set to expire in the coming months. While some companies have sought legal intervention to keep their services running, the overall situation remains precarious. The PTA’s document also reveals that nine telecom companies owe a staggering Rs. 24 billion to the Ministry of IT, along with an additional Rs. 54 billion in late payment surcharges.

The implications of this unresolved conflict are far-reaching. Apart from the potential disruption of mobile and internet services, the global communication network could also be impacted. International traffic coming into Pakistan may face difficulties as services are shifted to alternative operators, potentially affecting global connectivity.

Adding to the already dire situation, Pakistan has been grappling with intermittent internet service disruptions linked to the recent implementation of internet firewalls. These firewalls, installed at the country’s main internet gateways, are designed to monitor and filter online traffic. While authorities claim that these systems are intended to block objectionable content on websites and social media platforms, they also possess the capability to trace the origin of such material. However, these firewalls have inadvertently caused additional service interruptions, exacerbating the telecom sector’s current challenges.

In light of these developments, the PTA’s warning serves as a stark reminder of the potential consequences of the ongoing dispute. The situation calls for urgent resolution, as the stakes are high, and the risk of widespread disruption looms large over Pakistan’s telecommunications landscape. With millions of users and critical services hanging in the balance, the need for swift and decisive action has never been more pressing.