Pakistan may face telecom blackout due to non-renewal of LDI licenses.

The Pakistan Telecommunication Authority (PTA) on Friday expressed grave concerns about an impending, large-scale telecom blackout. This looming crisis is due to the non-renewal of Long Distance International (LDI) licenses, leaving the telecom sector in a precarious state.

In a recent meeting of the Standing Committee on IT, detailed documents were presented, highlighting the severe impacts of LDI license non-renewal. Alarmingly, 50 percent of mobile traffic is at risk as numerous mobile towers would go offline.

The PTA document further elaborates that 10 percent of internet traffic will suffer disruptions. In addition, an astonishing 40 percent of ATMs nationwide are expected to cease operations. International traffic to Pakistan will be significantly hampered, and shifting services to other operators could potentially jeopardize global communications.

The telecom companies and the IT ministry have been at loggerheads over the contentious issue of arrears, with no resolution in sight. Meanwhile, the Steering Committee of the IT ministry has struggled to reach a consensus on the appropriate formula for the recovery of these dues.

The PTA has firmly linked the renewal of licenses to the settlement of arrears, creating a significant bottleneck for several operators. The LDI licenses of three to four companies have already expired, and more licenses are set to lapse in the coming months, adding urgency to the situation.

As a result, the affected companies have sought legal intervention to ensure the continuation of their services. Currently, nine telecom companies are mandated to clear a whopping sum of Rs54 billion in late payment surcharges, along with Rs24 billion worth of arrears owed to the IT ministry.