Currently, the SCO is restricted to operate only in Azad Jammu Kashmir (AJ&K) and Gilgit-Baltistan (GB); however, it has applied for an LDI licence to enhance its operations across the country. However, the Ministry of Information Technology and Telecommunication is against the grant of LDI licence for it finds it against the agreement with Etisalat and fears huge penalty in case the later moves the court for arbitration. According to Pakistan Telecommunication Authority (PTA), the codal formalities have not been fulfilled for the said license.
The representative of the SCO became emotional during the meeting of the Senate Sub-Committee on Delegated Legislation, saying that delaying tactics are being used in the grant of an LDI licence, resulting in a huge loss to the national exchequer, as the institution deposits the whole revenue to the government. Furthermore, during the last four to five years, revenue of around Rs 4 billion was lost due to non-grant of licence.
He also threatened to move the court of law if SCO is not granted the LDI licence. Furthermore, he stated if SCO is not entrusted with exclusive rights to operate in AJ&K and GB then why Pakistan Telecommunication Company Limited (PTCL) and other companies are operating there. It is a violation being done by the PTA, he asserted.
The committee met with Kalsoom Perveen in the chair here on Wednesday in the absence of convener of the committee, Mohammad Duad Khan Achakzai, to discuss the issue of enhancement of SCO's area of operation in the light of opinion by the attorney general for Pakistan and the Ministry of Law and Justice.
The Member Enforcement and Director General (Legal) of Pakistan Telecommunication Authority (PTA) said that the SCO is not fulfilling the legal/codal formalities as published in the Information of Memorandum (IM) and hence progress on its application is stalled. The SCO representative said that on May 29, 2014, a comfort letter was issued by the PTA on SCO application for the licence, asking how it can be said now that SCO is not fulfilling the legal formalities. If there were any other requirements, the PTA must inform the SCO and the latter would complete it, but how it is raising questions on the application after the passage of such a long time, he questioned.
A PTA official said the letter was issued by director license without the approval of the DG (Legal). He further said that the PTA and the SCO have different interpretations of the Act; hence, the PTA would draft its question and send for legal opinion to the Law Ministry.
The SCO officials maintained that the Ministry of Law and Justice and Attorney General for Pakistan have also stated that there is no issue in the grant of licence. However, the PTA objected that the Ministry of Law and Justice and Attorney General for Pakistan gave their opinion in response to some other question and not on the PTA's stance.
The convener as well as the PTA officials raised the question if the SCO is ready to give an undertaking for not coming into competition then for what purpose the LDI license would be sued for. The SCO official said that they are committed not to go for fixed line.
The chairperson said the committee has listened to and noted the points of all the sides and asked for the availability of Attorney General for Pakistan and the Law Ministry to sit together and give a final decision on February 9 in this regard.