The Pakistan Telecommunication Authority (PTA) has approached Prime Minister Shehbaz Sharif, requesting him to expedite the process of new spectrum auction.
The Senate Standing Committee on Information Technology and Telecommunication, which met on Monday, voiced concerns over Ufone's continued financial losses. It also got a briefing on alleged overbilling by Jazz, cartelisation in the telecom sector and the persistent service quality issues.
The Senate penal was informed that service quality problems primarily stemmed from the delay in spectrum auctions. Pakistan is currently operating with 274 MHz of spectrum, which is insufficient to meet the rising consumer demand. Internet slowdowns were the result of limited network capacity while several spectrum-related cases remained pending in courts.
Speaking in the meeting, PTA Chairman Hafeezur Rehman said that the shortage of spectrum was a major factor behind poor service quality, though the PTA was fully prepared for spectrum auctions. He noted that Ufone-Telenor merger had been delayed for 18 months, further straining the telecom market.
PTA has also requested the PM to fast-track spectrum auctions in an effort to improve service delivery.
The Senate committee was concerned over the continued losses of Ufone that impacted the financial health of Pakistan Telecommunication Company Ltd (PTCL). The losses of Ufone, a subsidiary of PTCL, have also halted PTCL-Telenor merger.
The PTA chairman asserted that Ufone was the only mobile services company that was incurring losses, while others were profitable.
Senator Humayun Mohmand claimed that the company continued to suffer owing to the influence of the government. However, Senator Afnanullah countered that Ufone's management was entirely private and the state had no operational role in it.
The PTA chairman acknowledged that Jazz increased tariffs by 19% in 2024, but insisted that the regulator's role was to maintain market balance. PTA officials told the committee that Jazz wanted to increase tariffs further but it was restrained.
When asked by the committee chair if the PTA supported Jazz's tariff hikes, the PTA chairman replied: "I will not defend Jazz under any circumstances."
He clarified that the telecom authority regulates tariffs and protects consumers and no company could increase tariffs without prior approval. He stressed that the objections raised in an audit report had already been addressed and they were based on misunderstanding.
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