A Telenor official said cellular networks were not bound to pay the amount because the court had not issued any order on the matter yet. PHOTO: FILE
"Telenor Pakistan voluntarily offers payment of $224.6 million … to safeguard the interest of its valued customers," Telenor said in a statement issued on Wednesday.
The renewal of GSM licence of Telenor Pakistan, which was supposed to be done by May 25, 2019, had been delayed by the Pakistan Telecommunication Authority (PTA) and faced further delay due to the pricing issue and rollout obligations, read the statement.
According to a source familiar with the development, Jazz is also said to have made a decision to pay $291 million to the government as partial payment for licence renewal as its first priority is uninterrupted and high-quality service to the customers backed by a commitment to Pakistan.
Telecom companies are supposed to get their licences renewed after 15 years and PTA is liable to deliver the framework two years before the deadline so that cellular companies could provide feedback and a final deal could be reached mutually.
Earlier, the two companies approached the Islamabad High Court for clarification on the licence renewal fee and terms. The case is being heard for the past three months.
"The more the case will stay in court, the more the country will be deprived of the revenue," said an official of Telenor Pakistan while talking to The Express Tribune. "A dollar today is worth more than a dollar tomorrow."
He added that cellular networks were not bound to pay the amount because the court had not issued any order on the matter yet. However, as a goodwill gesture, the company made the offer and would comply with the court order when the verdict was announced, he pointed out.
"The country is in dire need of revenue and the offered $224.6 million, the equivalent of Rs36 billion, can be handy for the government at a time of crisis," he said. "Rest of the matters will be dealt with according to the court's order."
Licences of Jazz and Warid have expired and all market players, including Telenor, have opposed the proposed renewal cost of $450 million, claiming that Ufone was given the renewal in 2014 at a cost of $291 million.
They argue that any price above that would be unfair because they would have to operate for the next 10 years at an uncompetitive price.
As of June 2019, Pakistan's cellular subscribers stood at 161 million with 71 million broadband subscribers including 69 million 3G/4G subscribers.
Published in The Express Tribune, August 22nd, 2019.
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