ISLAMABAD:The Pakistan Telecommunication Authority (PTA) has cancelled the licenses of five long-distance international (LDI) operators after they failed to clear outstanding dues despite repeated notices.
The regulator also directed the companies to shut down their operations with immediate effect.
The affected firms are WorldCall, Wateen Telecom, Voice Communication, TeleCard, and Circle Net.
PTA said each company was issued individual termination orders after failing to comply with earlier instructions to pay arrears within one month.
The decision was taken under directives from the Ministry of Information Technology and court rulings that required hearings with defaulting operators.
According to PTA’s findings, the five companies together owe billions of rupees in unpaid regulatory dues, including universal service fund contributions and Access Promotion Charges (APC) dating back several years. Read more on this at:”The PTA is at odds with long distance operators. What does it mean for your connectivity?”
The authority noted that the companies had been given multiple opportunities to regularize their payments and renew licenses but failed to secure any breakthrough in negotiations.
The financial breakdown shows that Wateen Telecom was directed to pay Rs6.25 billion, Circle Net Rs5.9 billion, Multinet Rs1.41 billion, WorldCall Rs5.69 billion, and TeleCard Rs4.07 billion. Redtone, though not among the five whose licenses were cancelled, faced the heaviest liability with Rs14.31 billion.
Overall, the PTA estimates the LDI sector owes around Rs24 billion in principal amounts and an additional Rs56 billion in late payment surcharges.
In its orders, the PTA instructed cellular mobile operators and Class Value-Added Service licensees to immediately terminate any telecommunication facilities being provided to the defaulting LDI firms.
This measure, the regulator said, was necessary to protect the interests of compliant license holders and ensure continuity of lawful telecom services in the country.
The LDI market in Pakistan currently comprises 13 licensed companies. PTA reported that four of these had their licenses renewed in 2024, while seven others saw their license terms expire the same year. Two more licenses are due to expire in 2025 and 2026 respectively. Industry analysts note that the cancellation of multiple operators highlights both the financial stress and regulatory challenges facing smaller players in a sector increasingly dominated by large mobile carriers.
Historically, PTA has faced difficulties in enforcing payment compliance from LDI operators. Several firms have struggled since the decline of international call revenues, once a major income stream.
The shift toward internet-based communications and over-the-top (OTT) services has further eroded the business model of many Pakistani LDI companies, leaving them unable to meet regulatory financial obligations.
The cancellation of licenses for WorldCall, Wateen Telecom, TeleCard, Voice Communication, and Circle Net effectively removes them from Pakistan’s long-distance market unless they settle dues and obtain fresh authorizations.
The PTA has not ruled out further enforcement against other defaulters, given the sector’s overall outstanding liabilities exceed Rs80 billion.
Telecom sector experts believe the regulator’s move could consolidate the LDI industry around fewer but financially stronger operators.
However, questions remain over the recovery of arrears, particularly given that some of the companies face broader financial distress and operational challenges.
The PTA emphasized that its actions were in line with legal provisions and necessary to uphold the integrity of Pakistan’s telecommunication regulatory framework.
It also reiterated that any LDI operator wishing to continue services must strictly adhere to license conditions, including timely payment of fees and contributions to universal service obligations.
The cancellation marks a significant regulatory step in Pakistan’s telecom industry, where enforcement of financial discipline has often lagged.
As the sector undergoes rapid transformation with the rise of mobile broadband and digital services, PTA’s decision is likely to set a precedent for stricter compliance going forward.
With WorldCall, Wateen Telecom, TeleCard, Voice Communication, and Circle Net now stripped of their operating licenses, the PTA has signaled its intent to protect financial transparency and ensure sustainability within Pakistan’s telecommunications ecosystem.
The post PTA cancels the licenses of five LDI firms appeared first on Profit by Pakistan Today.