The Pakistan Telecommunication Authority (PTA) has issued a draft framework for a 10-year Class License for Internet Service Providers (ISPs), laying out stricter compliance rules, service quality standards, and consumer protection measures.
The license, issued under the Pakistan Telecommunication (Re-organization) Act, 1996, restricts service providers to operate only within their licensed district. Companies will be bound to deliver a minimum of 100 broadband connections within one year of obtaining the commencement certificate.
The draft enforces net neutrality, making it obligatory for providers to treat all internet traffic equally without discrimination or preferential treatment. ISPs are also directed to implement strong cybersecurity systems, adopt environmentally friendly technologies, and prepare comprehensive disaster recovery plans.
On financial terms, the draft sets the initial license fee at Rs300,000, with an annual fee of Rs100,000, subject to a 10% yearly increase. Delays in payments will attract penalties, while PTA retains the authority to suspend or terminate the license over persistent violations.
PTA has also emphasised consumer rights and service quality. Licensed companies will be required to establish a transparent billing system, an efficient complaint-handling mechanism, and service-level agreements (SLAs) with other operators. ISPs must maintain detailed records, provide quarterly reports on service quality, and ensure transparency in tariffs.
The document further bans international illegal connections and wholesale bandwidth resale, aiming to curb grey traffic and protect market integrity. PTA will also have full powers to inspect systems, monitor service quality, and enforce compliance with cybersecurity standards, including lawful interception and data protection obligations.
The framework highlights that licensed companies will be responsible for maintaining privacy of communications, confidentiality of customer information, and compliance with national security requirements. Any violations could result in sanctions ranging from fines to suspension of operations.
By tightening regulations, strengthening oversight, and enforcing sustainability measures, the draft license seeks to bring Pakistan’s internet sector closer to international benchmarks, ensuring fair competition, consumer protection, and improved quality of service across the market.
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