Proposed revisions in licensing regime stir concerns among wireless & internet service providers

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By GHULAM ABBAS

ISLAMABAD: Wireless and internet service providers have voiced concerns over the proposed revisions in their licensing regime by the Pakistan Telecommunication Authority (PTA), stating that these changes could lead to mismanagement and distortions in the industry.

The Wireless & Internet Service Providers Association of Pakistan (WISPAP) has expressed apprehension that the new proposed licensing template for Data Class Value Added Services (CVAS) may foster a culture akin to the problematic practices observed among TV cable operators.

WISPAP emphasized the need to address disparities in the current licensing framework and promote broadband proliferation in the country. However, it argues that the proposed changes may not serve the intended purpose of expanding internet access, particularly in underserved areas of Pakistan.

The association has recommended to the PTA that instead of constraining competition in the sector, CVAS operators should be permitted to deploy their own fiber optic networks independently, without reliance on agreements with Local Loop Operators or Cable TV Network Operators. According to WISPAP, such a move would stimulate innovation, competition, and investment in network infrastructure, ultimately benefiting consumers and driving broadband adoption.

In a written response, Shahzad Arshad, Chairman of WISPAP, cautioned against potential benefits accruing to existing Cable TV Operators, who already hold licenses from PEMRA. He warned that such changes could lead to industry stagnation due to monopolistic tendencies.

Arshad highlighted the concerns over customer welfare, citing a history of ill-practices among a significant number of cable TV operators, including territorial division, resorting to violence, and imposing coercive measures on customers seeking to switch providers.

WISPAP proposed that the area of operations for licensees should be defined by administrative divisions of provinces, such as Rawalpindi Division or Lahore Division, to ensure fair competition.

In response, the PTA acknowledged the evolving market dynamics and technological landscape over the past two decades, asserting that the existing Data CVAS License was inadequate to accommodate such shifts. The authority emphasized the necessity of revising the Data CVAS License to facilitate the provision of internet services in the country.

Conversely, the PTA raised concerns about Data CVAS internet licensees engaging in illegal practices, including establishing unauthorized infrastructures, selling wholesale bandwidth, and providing bandwidth to non-licensees for commercial purposes. It stated that the regulatory framework for internet service provision by Data CVAS licensees was under review, in consultation with all stakeholders.

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