ECC okays long-awaited revision of RBS charges

First update since 2001 aligns spectrum fees with rising costs, modern telecom needs

ISLAMABAD:

The Economic Coordination Committee (ECC) of the Cabinet has approved a major revision to Pakistan's Radio-Based Services (RBS) charges, marking the first update to the fee structure since 2001. Officials described the decision as a long overdue measure aimed at addressing administrative cost escalations and aligning charges with the demands of modern communication systems.

During a detailed briefing, the Information Technology and Telecommunication Division informed the ECC that the Pakistan Telecommunication Authority (PTA) has been entrusted with the responsibility of processing frequency assignment requests and issuing licenses or approvals for Radio-Based Services. These services cover a broad range, including Private Radio Networks (PRN), Mobile Station Aircraft and Ship communications, Inmarsat satellite services, Amateur radio licenses, and DRS/Microwave links, all of which play a vital role in communication infrastructure and safety mechanisms.

The Division highlighted that the current fee structure, which has remained unchanged for more than two decades, has become outdated and is no longer reflective of either the economic realities or the growing costs of license management, spectrum monitoring, and regulatory oversight. Over the last 24 years, a substantial disparity has emerged between the prescribed charges and the administrative expenses incurred by PTA to manage the spectrum.

At the same time, the monetary value of RBS-linked services and the technological sophistication embedded within them have also expanded significantly. With new demands created by advancements in digital communication and modern connectivity requirements, the existing fee structure had become obsolete, thereby necessitating an immediate and comprehensive overhaul.

Officials from the IT Division also pointed out that, under Section 3(2)(a), Section 5(2)(c), and Section 43(5) of the Pakistan Telecommunication (Re-organisation) Act, 1996, the PTA is mandated to regulate spectrum allocation and the issuance and renewal of licenses while collecting relevant charges. Furthermore, Clause 8.7.5 of the Telecommunication Policy 2015 obliges PTA to propose suitable methods for assigning and pricing spectrum after thorough consultations with industry stakeholders, ensuring fairness and transparency in the process.

In line with these obligations, the PTA initiated a consultation exercise with industry players in August 2024. The regulator uploaded a consultation paper on the revision of RBS charges to its website, inviting feedback from stakeholders. Based on the consultation process, PTA drafted a revised fee structure along with a mechanism for its implementation and forwarded the proposal to the Ministry of Information Technology and Telecommunication (MoITT) for onward processing.

As part of the mandatory review process under Rule 18(4) of the Rules of Business, 1973, the Finance Division was consulted prior to final submission to the Cabinet. The Finance Division endorsed the proposed revisions and suggested minor changes, which were incorporated into the final draft prepared by PTA.

Subsequently, the Information Technology and Telecommunication Division presented the revised charges and implementation plan to the ECC in accordance with Clause 8.7.5 of the Telecom Policy 2015. After reviewing the summary and recommendations, the ECC approved the proposal, paving the way for the introduction of the revised RBS charges.