The Pakistan Telecommunication Authority (PTA) has introduced a new Class Licence for the Provision of Internet Services, valid for ten years, aimed at encouraging new internet service providers (ISPs) to enter the market.

Issued under Section 21 of the Pakistan Telecommunication (Re-Organization) Act, 1996, the licence sets out clear guidelines and obligations for companies seeking to provide internet services within licensed districts across Pakistan.

According to the licence framework, service providers will be allowed to establish, maintain, and operate internet systems in their allocated districts. However, the licence explicitly restricts operations outside the licensed district, including running network operations centers beyond permitted areas. It also prevents licensees from providing wholesale bandwidth or interconnecting with international telecom systems without authorization.

The licence has been designed with a strong emphasis on consumer rights and service quality. Licensees are required to sign Service Level Agreements (SLAs) with access providers such as PTCL or Local Loop operators, ensuring quality and pricing transparency. They are also bound to uphold net neutrality, ensuring equal treatment of internet traffic, while adopting environmentally friendly practices in network deployment and operations.

PTA has set out strict rollout obligations for new entrants. Within one year of issuance, licensees must begin services in their licensed districts and connect at least 100 broadband subscribers. Companies are also required to maintain a disaster recovery plan and ensure service continuity during national emergencies, under the supervision of PTA.

The financial obligations under the new regime include an initial licence fee of Rs. 300,000 for each licensed district and an annual licence fee of Rs. 100,000, subject to a 10 percent annual increment. Late payments will attract penalties, while failure to meet financial commitments could lead to suspension or termination of the licence.

To strengthen accountability, ISPs will be required to establish monitoring systems capable of recording traffic, preventing grey traffic, analyzing threats, and providing real-time data to the PTA. The authority will have unrestricted inspection rights over licensee systems, ensuring compliance with cybersecurity, national security, and quality standards.

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The licence framework also imposes strict rules on customer relations. ISPs must use PTA-approved standard contracts for individual customers, ensure the confidentiality of customer data, and maintain an efficient complaint resolution system. Billing processes are required to be transparent, system-generated, and auditable, with records preserved for at least three years.

On tariffs, the framework grants ISPs freedom to set prices unless PTA determines them to be unfair or if the provider gains significant market power, in which case regulatory oversight will be applied. Interconnection with other licensed operators will remain governed by PTA’s interconnection rules to ensure fair competition in the sector.

The ten-year licence is renewable subject to compliance with PTA rules, telecom laws, and government policies. PTA has reserved the right to amend licence terms at renewal to address technological changes or market conditions. By introducing this framework, the authority aims to expand internet access across Pakistan while enforcing quality, transparency, and consumer protection.