PTA Suspends ISP License Over Unpaid Dues, Warns of Termination

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PTA Halts ISP Operations Over Unpaid License Fees

IJ Internet Services faces one-month suspension for failing to clear annual fees despite repeated notices.

ISLAMABAD – The Pakistan Telecommunication Authority (PTA) has suspended the operational license of IJ Internet Services (Private) Limited for one month after the company failed to clear its outstanding dues, including the Annual License Fee (ALF) for the fiscal year ending June 30, 2022, along with the Late Payment Additional Fee (LPAF).

The suspension, issued under an enforcement order pursuant to Section 23 of the Pakistan Telecommunication (Re-organization) Act, 1996, follows a series of repeated reminders, warnings, and official notices that went unanswered.

Background of the Case

IJ Internet Services, granted a non-exclusive license in August 2014, was authorized to operate Data Class Value Added Services in Pakistan. Under the terms of the license agreement and relevant regulatory provisions, the company is obligated to:

  • Submit its annual audited accounts.
  • Pay the ALF within 120 days of the close of each financial year.

The PTA maintains that reminders were first sent in October 2022, followed by repeated letters and emails up until January 2025. These communications clearly stated the payment deadlines and consequences of continued non-compliance.

Formal Notice and Hearing Process

When no payment was made, a Show Cause Notice was issued on January 3, 2024, instructing the company to:

  1. Clear all dues within seven days.
  2. Provide a written explanation within thirty days.

A hearing was also scheduled for May 9, 2024, at PTA Headquarters in Islamabad, giving the company a platform to defend itself or present mitigating circumstances. However, the company failed to attend the hearing or submit any written defense.

In its order, the PTA noted that the company had also failed to provide an updated correspondence address, which is a mandatory requirement under telecom licensing rules. This lack of compliance hindered the Authority’s ability to maintain direct communication with the licensee.

Final Deadlines Ignored

After repeated failed attempts to secure payment, the PTA issued a final deadline of January 31, 2025, making it clear that further delays would result in strict regulatory action. The deadline passed without any response, compelling the hearing panel — comprising senior PTA officials — to proceed ex-parte (in the absence of the licensee) based on available evidence.

The decision states that the company’s license will be permanently revoked if it fails to meet all financial and regulatory obligations within the one-month suspension period.

Industry-Wide Impact

The suspension order further instructs all Long Distance International (LDI), Local Loop (LL), Telecommunication Infrastructure Provider (TIP), and mobile operators to immediately halt all telecom facilities and interconnection services to IJ Internet Services until further notice.

According to telecom industry experts, the decision reflects PTA’s increasingly strict enforcement stance to ensure compliance among licensed operators. “This is a clear signal to the sector that regulatory obligations are not optional. Financial and operational requirements must be met, or licenses will be at risk,” said an industry analyst.

PTA’s Warning to the Sector

PTA officials emphasized that the Authority will continue to take action against licensees who fail to fulfill their commitments. “The regulatory framework exists to protect the integrity of the telecom sector. Any operator ignoring its obligations disrupts not just the market but also the quality of service to end users,” a PTA spokesperson stated.

They added that while license termination is considered a last resort, non-compliance over an extended period leaves the Authority with no choice but to impose penalties, suspensions, or cancellations.

Looking Ahead                

The case of IJ Internet Services is expected to be closely watched by other operators, especially smaller ISPs, as the PTA strengthens its monitoring and enforcement mechanisms. If the company settles its dues within the suspension period, it could regain operational status; however, failure to act will result in permanent removal from the list of licensed telecom operators in Pakistan.

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