ISLAMABAD: The Pakistan Telecommunication Authority (PTA) has commenced the grant of Class Licences for the provision of internet services at the district level as part of its continued efforts to encourage local entrepreneurship and enhance broadband penetration across Pakistan.
The move is expected to generate additional revenue of around Rs3 billion and create thousands of jobs by expanding internet connectivity to smaller towns and villages across the country.
The Class License shall be issued for a period of ten (10) years. Applicants will be required to pay a one-time Initial License Fee of PKR 300,000 (three hundred thousand). An Annual License Fee (ALF) of PKR 100,000 (one hundred thousand) for the first year shall be payable along with the initial fee before the license becomes effective.
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The ALF for subsequent years shall be payable in advance and will be subject to an annual increase of 10%.
Sources said that over the span of two decades, significant changes have unfolded in the market dynamics and technological landscape, reshaping the environment profoundly. These advancements have rendered the existing scope of the Data CVAS License no longer to correspond to the evolved technological shifts.
Therefore, a revision in the Data CVAS License for the provision of internet services in the country is imminent.
Furthermore, startups, entrepreneurs, and young technical graduates have shown keen interest in acquiring small-area licenses, in addition to Cable TV operators seeking to offer quality internet services by utilising their existing OFC infrastructure established under PEMRA’s Cable TV licenses.
Under the previous regulatory framework, they were obligated to acquire FLL licenses from the PTA for offering such services.
Nonetheless, they exhibit reluctance towards pursuing FLL licenses due to the compulsory requirement of providing voice services and associated obligations tied to FLL licenses.
According to the new template the Licensee shall provide Licensed Services to the End Users by acquiring access/IP Bandwidth from Local Access Provider (LAP) and last mile infrastructure acquired from Local Access Provider (LAP) or Infrastructure Licensees (IL) or last mile infrastructure established under its own “Cable TV Distribution” License issued by the Pakistan Electronic Media Regulatory Authority (PEMRA).
Further, the Licensee can lay down its own purpose-specific transport/local loop infrastructure just for providing Licensed Services, after three months of failure to obtain the desired infrastructure from any existing LAP or IL, subject to prior approval of the Authority, provided that the licensee does not hold PEMRA’s Cable TV distribution license.
The PTA remains committed to promoting digital inclusion, strengthening broadband infrastructure, and facilitating growth in the telecommunications sector across the country.
Copyright Business Recorder, 2026
