In order to promote investment in the country, the companies must feel secure about their licenses’ renewal on time. The whole process of renewal should be very clear and specific regarding all the details of terms and conditions that are applicable. The investors must know all this to continue their business. And if they are forced to face such circumstances where they have to worry about their license renewal, when all of their focus should be on the equipment, infrastructure and the improving the service, they won’t have much incentive or even interest in investing more in deployment or upgrading their equipment to the modern standards. After all, who would like to do business and invest in such an uncertain situation? All this will result in the decline of quality of service and in the end it will negatively affect the customers.
Three telecommunication companies, Warid, CMPak Limited and Telenor Pakistan, approached PTA, for renewal of license. The license of Telenor Pakistan and Jazz is due to expire in May 2019, and the operators may face operational issues if they fail to renew the licenses within the due time. The license of Zong is also due to expire in October 2019. Warid and CMPak have given consents without any condition; however, Telenor has proposed a few changes in license renewal process.
Prime Minister Imran Khan has constituted a technical committee to evaluate benchmarks for the license renewal of three mobile operators and award of additional spectrum. The government is expecting to generate $1-2 billion in revenue from the process.
The immediate and efficient completion of the renewal process is needed to ensure certainty in the industry. However, it depends on the new framework of the licenses regime by the telecom authority especially after the licenses and spectrum of 3G/ 4G technologies are awarded to various operators.