Internet, Mobile Traffic, and ATM Services at Risk Across Pakistan Due to LDI Licenses

It is a critical problem for Pakistan that has the potential to put a serious threat to the development of its Telecommunication sector. The NGO is also claimed to be in danger as 50% of mobile traffic, 10% of internet traffic, and 40% of ATM banking machines could shut down due to non-renewal of LDI licenses’ and Rs. 79 billion in outstanding due. This situation is considered a severe threat to different services in the country as shown below.

Dues and License Renewal Status

Pakistan has 13 LDI licensees in total only four licenses have been processed for renewal. The remaining 9 licensees are in one way or another experiencing problems relating to overdue payments on the Access Promotion Contribution (APC) for the Universal Service Fund (USF). This may lead to disruption of a number of telecommunication and financial services which affect millions of users, due to failure to renew these licenses.

Impact on Telecommunication Services

Mobile Services

The stopping of the issuance of LDI licenses will negatively impact 50 percent of mobile traffic, which may cause interruption of service. A lot of individual mobile towers might shut down and as such, this will lower the standard of connectivity as well as service delivery to customers.

Internet Traffic

By its own estimate, about 10% of the Internet traffic could be affected by the non-renewal of the LDI licenses. These disruptions may culminate in slowed-down internet speed and inadequate connections to consumers and companies around the world.

Banking Services

The ATM services are also affected with as much as 40% of the ATM machines being put out of business. This could cause a lot of discomfort to banking customers and turn around the financial transactions within the society.

Optical Fiber Cable (OFC) Infrastructure

Overview

Pakistan’s OFC network, crucial for long-haul and metro connectivity, comprises:

Wateen Telecom: 22,000 km Long Haul and 22,000 km Metro, leased to major telecom operators.

Multinet Pakistan: 6,993 km Long Haul.

Worldcall: 1,800 km Long Haul and 734 km Metro.

Potential Disruptions

The authorities’ non-renewal of LDI licenses will significantly affect the OFC infrastructure, particularly the long-haul and metro connectivity. Such disruption to the supplies will detrimentally impact the kind and dependability of communication services in Pakistan.

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Satellite Services

Licensees and Capacities

Several licensees operate satellite hubs with significant throughput capacities:

Redstone LDI: 496 Mbps

Telecard: 2970 Mbps

Wateen Telecom: 383 Mbps

Multinet Pakistan: 41 Mbps

Dancom: 640 Mbps

Consequences of Non-Renewal

These are satellite services that will be affected through the lapse in LDI licenses including banking operations, mobile operator sites, and connectivity to law enforcement agencies as well as government departments. This could affect the global incoming traffic and may also cause a notable decline in the quality of service.

Cross-Border Connectivity

Pakistan-Afghanistan Links

Apart from the fiber optic and microwave system that connects Pakistan and Afghanistan, Multinet Pakistan and Wateen Telecom also offer several cross-border microwave and OFC links. All these links play a very important role providing international connection.

Potential Issues

Non-renewal of LDI licenses may disrupt these links and this will lead to serious connectivity problems for the operators in Afghanistan. This may lead to degradation of the services that are offered and possible interruption to international communication services.

Conclusion

It would be pertinent to mention here that the non-renewal of LDI licenses in Pakistan is very much a dangerous proposition for the telecommunications sector of the country. As mobile services and Internet traffic, ATM operations, and cross-border connectivity are identified to be prominent areas of impact, it is high time to address the dues and renewals of licenses. The failure to do this may lead to more service breakdown and economic problems across the countries.