Pakistan has taken a decisive step towards expanding digital connectivity by publishing a draft licensing framework for Fixed Satellite Services (FSS). This move is expected to attract both international and domestic satellite internet providers, including Starlink and Shanghai Spacecom. The new system, released by the Pakistan Telecommunication Authority (PTA), is designed to simplify operations, reduce regulatory hurdles, and accelerate the delivery of high-speed internet to underserved and remote regions of the country.
The draft license, which is open for public consultation until September 19, 2025, consolidates what was previously a complex system of up to 15 different permits into a single authorization valid for 15 years. This streamlined structure is being hailed as a breakthrough for companies looking to establish satellite internet networks in Pakistan, with the PTA emphasizing that the changes are aimed at making investment in the sector easier while safeguarding national security and regulatory oversight.
Under the proposed license, companies will be allowed to establish and operate fixed earth stations, gateway earth stations, and very small aperture terminals (VSATs). They will also be authorized to provide a wide range of services, including broadband, backhaul connectivity, internet bandwidth, and intranet facilities. Unlike previous arrangements, the license will also permit providers to offer services directly to end users, creating opportunities for both corporate clients and individual subscribers to benefit from next-generation satellite technologies.
The financial framework of the license sets the initial entry fee at US$500,000. In addition, license holders will be required to pay an annual license fee equivalent to 0.5 percent of gross revenue, contribute 1.5 percent of revenue to the Universal Service Fund (USF) to support connectivity in rural areas, and allocate another 0.5 percent towards the annual spectrum usage fee. A performance bond of US$50,000 must also be furnished to ensure timely compliance with rollout obligations.
One of the key conditions of the license is that companies must establish at least one gateway earth station within Pakistan and make services available to customers within 18 months of approval. The framework further mandates that all user data generated in Pakistan must remain stored within the country, a measure intended to strengthen national data sovereignty.
The new draft also clarifies the boundaries of the FSS license. Companies will not be permitted to offer mobile satellite services, direct-to-home broadcasting, direct-to-device services, or any form of content broadcasting under this framework. Nor will they be allowed to establish direct interconnections with foreign telecom networks. Instead, all international traffic will be routed through licensed long-distance international (LDI) operators in Pakistan to maintain regulatory oversight and national security compliance.
PTA has stressed the importance of consumer protection and national security, requiring licensees to implement lawful interception systems, adhere to cybersecurity standards, and guarantee user privacy. The regulatory framework also requires operators to comply with the Pakistan Space Activities Rules (PSARB) 2024, which created the Pakistan Space Activities Regulatory Board to oversee all space-related commercial activities. This body, working with international consultants, is currently developing a comprehensive regulatory regime for space operations in Pakistan.
The move comes as satellite operators around the world look towards South Asia as a growth market for connectivity. Starlink, Shanghai Spacecom, and other global players have already shown interest in entering Pakistan, viewing the unified licensing model as a significant step that lowers barriers for entry. Industry observers say that the new system could encourage large-scale investment in satellite infrastructure, particularly in areas where traditional fiber or mobile networks have failed to reach.
The draft has been prepared after extensive consultations, with input from stakeholders collected during a round of discussions in February 2025. The final version was shaped in line with the Telecom Act and existing national policies. PTA has now invited the public and industry experts to review the draft until September 19, after which the final license will be issued for implementation.
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