The Pakistan Telecommunication Authority (PTA) is preparing to issue formal determinations regarding the operations of Long Distance and International (LDI) operators, following unresolved license renewals and an alarming accumulation of unpaid dues totaling Rs. 80 billion. The regulatory body is expected to make its decisions between July and August 2025, potentially reshaping the future of LDI services in the country.
This development follows a series of formal hearings that took place between April and May, during which PTA reviewed the status of multiple LDI operators continuing operations despite the non-renewal of licenses. According to official sources, the proceedings centered on two critical financial concerns: Rs. 24 billion in unpaid principal license renewal fees and Rs. 56 billion in late payment surcharges. Despite the extensive engagement, no significant breakthrough was achieved during the hearings.
Mixed Compliance Among LDI Companies
Out of the 13 LDI license holders operating in Pakistan, five companies agreed to pay their dues—amounting to Rs. 8.2 billion—through structured installment plans. However, four others outright refused to enter any repayment agreement. This split among operators has further complicated regulatory enforcement.
The licensing status of these companies also reflects a fragmented compliance landscape. While four companies successfully renewed their licenses in 2024, the licenses of seven others expired during the same year. The remaining two LDI licenses are set to expire in 2025 and 2026, respectively.
Longstanding Dues to the Universal Service Fund
In addition to license-related payments, LDI companies also owe significant amounts in Access Promotion Contribution (APC) charges to the Universal Service Fund (USF). These charges, aimed at expanding telecom access to underserved areas, have been left unpaid for years by several operators. Some companies have even secured stay orders from the courts, effectively delaying or halting PTA’s efforts to recover the funds.
The legal complexities stemming from these court interventions have limited the regulator’s ability to take immediate action, leading to a growing backlog of dues and unresolved cases.
Government Mediation Yields No Results
The Ministry of Information Technology has made efforts to mediate between PTA and the LDI operators. In May 2025, the Federal Minister for IT held meetings with representatives of LDI companies in an attempt to break the deadlock. However, PTA officials were reportedly not given access to the official minutes of the meeting, raising concerns about transparency and the effectiveness of those discussions.
Without a documented account of the negotiations, PTA had to rely solely on its own internal correspondence and court rulings to proceed. This lack of collaboration between the regulator and the ministry has raised questions about inter-agency coordination in resolving critical policy issues.
Regulatory Clampdown Imminent
Despite the obstacles, PTA has completed its hearings and is now ready to issue authoritative decisions regarding both the recovery of outstanding dues and the future operational status of defaulting LDI operators. These determinations could involve heavy penalties, forced license terminations, or even legal action for non-compliance.
With billions at stake and the credibility of regulatory enforcement on the line, these upcoming decisions are expected to send strong signals across the telecom sector, especially to companies that have operated without license renewals or have continuously avoided financial obligations.
Industry Impact and Next Steps
The forthcoming actions by PTA are likely to reshape the LDI landscape in Pakistan, setting new benchmarks for accountability and compliance. Industry insiders believe the crackdown could also influence pending mergers, acquisitions, and spectrum allocations, including the long-delayed 5G rollout, which PTA has previously linked to unresolved disputes like the PTCL-Telenor merger.
The resolution of these longstanding issues will be a critical test of the regulator’s ability to enforce discipline in an industry that forms the backbone of Pakistan’s digital economy. The decisions taken over the next few weeks could not only determine the future of LDI operators, but also reinforce PTA’s authority as the central regulatory force within Pakistan’s evolving telecom landscape.
