The Pakistan Telecommunication Authority (PTA) has launched a new Class Licence for the Provision of Internet Services, valid for ten years, to encourage new internet service providers (ISPs) and expand connectivity across the country. Issued under Section 21 of the Pakistan Telecommunication (Re-Organization) Act, 1996, the licence lays out clear operational, financial, and compliance requirements for ISPs.
Under the framework, licensees can establish and operate internet systems within allocated districts but are restricted from extending operations beyond those areas or engaging in unauthorized wholesale bandwidth or international interconnection. The model emphasizes consumer protection, net neutrality, and environmentally responsible practices, requiring ISPs to sign Service Level Agreements (SLAs) with access providers to ensure service quality and transparency.
Key rollout obligations include:
- Launching services within one year of licence issuance.
- Connecting at least 100 broadband subscribers in the licensed district.
- Maintaining disaster recovery and national emergency continuity plans under PTA supervision.
Financial obligations consist of an initial licence fee of Rs. 300,000 per district and an annual fee of Rs. 100,000, subject to a 10% yearly increment. Non-compliance or late payments could lead to penalties, suspension, or termination.
To strengthen cybersecurity and accountability, ISPs must deploy monitoring systems capable of detecting threats, preventing grey traffic, and providing real-time data to PTA, which retains full inspection rights. Providers must also use PTA-approved contracts, safeguard customer data, implement auditable billing, and maintain complaint resolution systems.
On pricing, ISPs have tariff flexibility unless PTA identifies unfair practices or significant market dominance, at which point regulatory oversight applies. Interconnection rules will ensure fair competition with other licensed operators.
The ten-year licence is renewable, with PTA reserving the right to amend conditions to reflect technological or market changes. The initiative is seen as a major step to expand internet access in Pakistan while ensuring quality, transparency, and consumer protection.
