PTA launches ten-year Class License for new internet providers in Pakistan

Initial fee for new telecom license is Rs300,000, with annual fee of Rs100,000, increasing 10% each year
An undated image of cables. — Canva
An undated image of cables. — Canva

In a bid to widen Pakistan's telecom sector and make it thrive and more competent, the Pakistan Telecommunication Authority (PTA) has introduced a new ten-year Class License for Internet Services.

The licence is aimed at tightening compliance rules, enforcing net neutrality, and implementing strict quality and security standards.

The move intersects with Pakistan's notable strides to modernise digital infrastructure, combat grey traffic, and improve service quality. In line with these ambitions, the PTA seeks to compel telecom operators to adopt international best practices, ensuring consumer protection and fair competition among internet providers.

Under the new license, Pakistani telecom operators are bound to provide services only in designated districts and are prohibited from practices such as unauthorised voice termination, bandwidth resale, and anti-competitive cross-subsidisation.

Part of the new framework is that the PTA retains its authority to inspect operators’ facilities, enforce monitoring, and block websites when necessary.

The initial fee for the new telecom license is Rs300,000, with an annual fee of Rs100,000, increasing 10% each year. Operators must also meet rollout obligations within one year, serving a minimum of 100 broadband users. Penalties for non-compliance include a 2% late fee per month, suspension, termination, or a public apology.

The outstanding development is that for the first time in Pakistan's history, licensees are required to legally uphold net neutrality and adopt eco-friendly measures, including energy-efficient systems and e-waste recycling.

Furthermore, operators are required to establish 24/7 Network Operations Centres to maintain disaster recovery plans and ensure service remains intact during emergencies.