In a significant enforcement action, the Pakistan Telecommunication Authority (PTA) has officially suspended IJ Internet Services license for one month, or until the company clears its outstanding dues. The suspension, announced under Section 23 of the Pakistan Telecommunication (Re-organization) Act, 1996, follows prolonged non-compliance with financial and regulatory obligations.
Why PTA Took Action
The decision to suspend IJ Internet Services license came after the operator failed to pay its Annual License Fee (ALF) for the financial year ending June 30, 2022, along with the applicable Late Payment Additional Fee (LPAF). Despite multiple reminders and notices, the company did not fulfill its obligations.
IJ Internet Services (Private) Limited was granted a non-exclusive license in August 2014 to operate Data Class Value Added Services. Under the license agreement, the operator is required to:
- Submit annual audited accounts.
- Pay the ALF within 120 days after the close of the financial year.
PTA records show repeated communication between October 2022 and January 2025, urging the licensee to make the required payments. However, no payment or compliance was reported.
The Show Cause Notice and Hearing
On January 3, 2024, PTA issued a formal Show Cause Notice, granting IJ Internet Services seven days to clear the outstanding dues and thirty days to provide a written explanation.
In addition, a hearing was scheduled for May 9, 2024, at PTA Headquarters in Islamabad. Unfortunately, the company neither responded to the notice nor attended the hearing. The operator also failed to provide an updated address as required under the regulations, making correspondence even more difficult.
A final deadline of January 31, 2025, was issued — but once again, no action was taken.
Decision by PTA’s Hearing Panel
Given the repeated non-compliance, the PTA hearing panel, composed of senior officials, decided to proceed ex-parte (without the company’s participation) based on the evidence available.
As a result, PTA ordered:
- Suspension of the license for one month or until dues are cleared.
- Immediate termination if the company fails to comply within the suspension period.
- Suspension of telecom facilities provided to the company by all Long Distance International (LDI), Local Loop (LL), Telecommunication Infrastructure Provider (TIP), and mobile operators until further notice.
This means IJ Internet Services cannot legally operate its services during the suspension period unless it resolves the outstanding issues.
The Broader Context: PTA’s Regulatory Enforcement
The PTA suspends IJ Internet Services license case is not an isolated incident. In recent years, PTA has intensified regulatory enforcement to ensure that all operators meet their legal and financial commitments.
Non-payment of dues and failure to respond to official correspondence are considered serious violations, as they directly impact the integrity of the telecom sector.
According to PTA’s latest compliance data:
- Over a dozen smaller operators have faced suspension or termination in the last five years due to non-payment.
- PTA collected more than Rs. 4 billion in license fees and penalties in the 2023-24 fiscal year.
This reflects a growing emphasis on ensuring that licensed operators remain accountable and financially compliant.
Implications for Customers and the Industry
For customers of IJ Internet Services, the license suspension could lead to service disruptions. Since all telecom facilities from other operators have also been ordered to be suspended, internet and data services provided by IJ Internet Services may become inaccessible during the enforcement period.
From an industry perspective, this move sends a clear message: PTA will not hesitate to enforce penalties or revoke licenses if operators fail to follow regulations. It reinforces the importance of compliance not just for large telecom companies, but also for smaller, regional, and specialized service providers.
What IJ Internet Services Must Do Next
To have its license reinstated, IJ Internet Services must:
- Clear all outstanding dues — including the Annual License Fee for 2021-22 and the Late Payment Additional Fee.
- Submit updated audited accounts as required under the license agreement.
- Provide an updated official address to PTA for regulatory correspondence.
- Formally communicate its compliance actions to PTA within the suspension window.
Failure to do so will result in the automatic termination of the license without any further notice.
The PTA suspends IJ Internet Services license decision underscores the regulator’s commitment to ensuring transparency, compliance, and financial responsibility in Pakistan’s telecom sector. For IJ Internet Services, this is a critical moment to take swift corrective action — both to restore operations and to avoid permanent license revocation.
For the industry, it’s another reminder that compliance with regulatory frameworks is not optional. As the telecom market grows more competitive and regulated, operators that fail to meet obligations risk losing their place entirely.
