About 50% of mobile traffic, 10% of internet traffic, and 40% of ATM machines in Pakistan are at risk of going offline due to unpaid fees. The problem is related to the non-renewal of Long Distance International (LDI) licenses because of outstanding dues totaling around Rs. 79 billion.
There were 13 LDI licenses that needed to be renewed. Out of these, four licenses have been successfully renewed. However, the remaining nine license holders still owe money for the Annual Payment Contribution (APC) for the Universal Service Fund (USF), which is causing the issue.
If telecommunication licenses are not renewed, it can have a major impact on the entire telecom industry. This issue could lead to a decline in the quality of services like mobile calls and internet access. It could also disrupt business operations for companies that rely on these services. Additionally, the problem could affect the wider economy, as many sectors depend on reliable telecommunications for their daily operations and communication needs.
Optical Fiber Cable (OFC) Infrastructure
The optical fiber cable (OFC) network in Pakistan includes:
- 27,567 km of Long Haul OFC
- 18,337 km of Metro OFC
Here’s how different companies contribute to this network:
- Wateen Telecom: Operates 18,774 km of Long Haul OFC and 17,140 km of Metro OFC. These cables are leased to Telenor, Jazz, and CMPak for long-distance connections and Fiber to the Site (FTTS) connectivity.
- Multinet Pakistan: Manages 6,993 km of Long Haul OFC, also leased to Telenor, Jazz, and CMPak for similar connectivity purposes.
- Worldcall: Provides 1,800 km of Long Haul OFC and 734 km of Metro OFC.
Impact of Non-Renewal:
- Mobile Services: Around 50% of mobile traffic could be disrupted, leading to many mobile towers going offline.
- Internet Services: Approximately 10% of internet traffic would be affected.
- Banking Services: About 40% of ATMs could be out of service.
- Corporate Networks: Many corporate intranets might stop working.
Satellite Services
Several companies operate satellite hubs that are crucial for communication:
- Redtone LDI: Handles 496 Mbps, mainly serving banks, CMO sites, law enforcement agencies, and government departments.
- Telecard: Manages 2,970 Mbps, supporting banks, CMO sites, and government departments.
- Wateen Telecom: Provides 55 Mbps, mostly for cellular mobile operator sites.
- Multinet Pakistan: Offers 41 Mbps, mainly for banks and CMO sites.
- Dancom: Operates 640 Mbps, mainly for banks.
Impact of Non-Renewal:
- Banking and Government Services: Connectivity for banks, mobile operators, and government departments, especially in remote areas, will be disrupted.
- International Traffic: International incoming traffic would be interrupted, requiring rerouting to other operators. This could cause service issues, increased strain on other operators, and potential interruptions in international communications.
Cross-Border Links
Pakistan has cross-border microwave and OFC links with neighboring countries like Afghanistan. Companies like Multinet Pakistan and Wateen Telecom manage these links, which are important for international connectivity.
Impact of Non-Renewal:
- International Data Transit: The discontinuation of these links would affect data transit to Afghanistan, leading to connectivity problems for Afghan operators.
- Service Disruption: International traffic would need to be redirected to other operators, which might cause service degradation, increased pressure on remaining operators, and possible interruptions in international communications.
Cross-Border Links
Pakistan has cross-border microwave and optical fiber cable (OFC) links with neighboring countries like Afghanistan. These links are managed by Multinet Pakistan and Wateen Telecom and play a crucial role in maintaining international connectivity.
Impact of Non-Renewal:
- Disrupted Data Transit: If the licenses are not renewed, international data transit through these links will be interrupted.
- Connectivity Issues: This disruption could lead to problems for operators in Afghanistan who rely on these links for connectivity.
