PTA Rolls Out 10-Year Internet Licence to Expand Connectivity in Pakistan
The Pakistan Telecommunication Authority (PTA) has unveiled a new 10-year licence framework designed to attract fresh internet service providers (ISPs) and improve access to reliable internet across the country.
Aimed at District-Level Expansion
The licence, introduced under the Pakistan Telecommunication (Re-Organization) Act of 1996, allows approved companies to set up and operate internet networks within specific districts. However, operations will be strictly confined to the allocated area. Licensees cannot extend services outside their designated zones, establish network operations centres elsewhere, or link directly to international telecom systems without PTA’s approval.
Stronger Consumer Safeguards
PTA has built consumer protection directly into the framework. ISPs will be required to sign service-level agreements (SLAs) with backbone providers such as PTCL or local loop operators to ensure pricing transparency and service reliability. Net neutrality rules will apply, meaning providers cannot discriminate against certain types of traffic. Operators are also expected to adopt environmentally responsible practices in setting up and running their networks.
Service Rollout Conditions
New providers will face strict rollout obligations. Within a year of obtaining a licence, each company must connect at least 100 broadband subscribers in its district. They will also need to prepare disaster recovery systems and guarantee service continuity during national emergencies—an important clause given Pakistan’s frequent power and infrastructure challenges.
Fees and Penalties
The new framework sets financial terms upfront: a licence will cost Rs. 300,000 per district, with an annual renewal fee of Rs. 100,000, subject to a 10 percent yearly increase. Delayed payments can lead to penalties, while repeated violations may result in suspension or cancellation of the licence.
Cybersecurity and Monitoring
PTA is giving itself greater oversight of ISPs under the new system. Providers must implement monitoring tools capable of tracking traffic, detecting grey traffic, analyzing threats, and feeding real-time information back to the regulator. PTA inspectors will have unrestricted access to systems to verify compliance with cybersecurity and national security requirements.
Customer Rights and Billing Transparency
The rules also address how ISPs interact with customers. All contracts must follow PTA’s approved templates, and customer data must be kept confidential. Billing processes need to be fully system-generated, transparent, and auditable, with records maintained for at least three years. Companies must also put in place effective complaint-handling mechanisms.
Pricing Flexibility With Oversight
While ISPs will have freedom to set their own tariffs, PTA has reserved the right to intervene if prices are deemed unfair or if a provider gains excessive market power. Interconnection between operators will continue under PTA’s existing rules to keep competition balanced.
Renewable Licence with Evolving Rules
The 10-year licence will be renewable, but PTA has left room to amend terms during renewal periods to keep pace with new technologies or market realities. The regulator hopes this framework will lower barriers for new ISPs, boost internet penetration, and ensure users benefit from fair pricing and better service quality.
