Daily Times

KARACHI: In order to bring investments for establishment of an optical fibre cable (OFC) network, undersea cables and cross border connectivity, the Pakistan Telecommunication Authority (PTA) is planning to introduce a new licensing framework for Long Distance International (LDI) sector.

PTA said that the LDI sector offers a number of opportunities for new investors that can be channelized for further development of the sector. In this regard, the PTA has issued consultation paper intending to seek feedback of all stakeholders for further LDI licensing in Pakistan.

The PTA said over the years, the performance of LDI sector could not meet the desired expectations in terms of development of necessary infrastructure. However, the strength of the sector cannot be undermined as it holds number of opportunities for existing as well as potential LDI operators.

LDI license authorizes the licensee to establish LDI (Long Distance and International) network facilities, and to offer LDI services, anywhere in Pakistan. LDI service covers the provision of end to end communication between points that are located in different regions, not in the same Local Calling Area, or located more than 25/35 Km apart and located in Pakistan with other end located outside Pakistan.

Presently, Initial License Fee (ILF) of LDI is $500,000 and there are 16 LDI operators in Pakistan.

According to the PTA, new LDI licensee will deploy a minimum of 8,000 kms of OFC as per ITU standards throughout Pakistan within eight years. Furthermore, 25 percent of OFC will be deployed in un-served and under-served areas. New LDI licensee at its own or through a consortium of LDI(s) would be required to participate in new undersea submarine cable(s) to establish new landing point(s) other than Karachi within ten years.

Also, new LDI licensee would set up cross-border link with at least one country within 5 years of issuance of license, new LDI applicants will be required to acquire new LL licenses for at least two under-served LL regions as mandated by PTA with at least 400 subscribers in each region and new license conditions would be applicable on existing LDI licensees upon their renewal.

PTA further said that most of the LDIs in Pakistan are doing business of buying and selling of international minutes and have not invested in the physical infrastructure rollout which includes OFC, transmission facilities, earth stations, undersea cables, cross-border connectivity etc. The existing LDI license conditions also provide an option to LDI operators to lease transmission facilities from another party instead of deploying their own physical network. Therefore, most of the LDI operators have entered into leased agreements with other LDI operators regarding infrastructure deployment.

Apart from incumbent operators Pakistan Telecommunication Company Limited (PTCL) and National Telecommunication Corporation (NTC), only three LDIs namely Wateen, Multinet and LinkDotNet have deployed their own OFC network.

Published in Daily Times, August 3^rd 2017.