Around 50 percent of mobile traffic, 10 percent of internet traffic, and nearly 40 percent of ATM banking machines are at risk of going offline due to the non-renewal of Long Distance International (LDI) licenses, which have outstanding dues of approximately Rs. 79 billion, according to official documents.

Out of 13 LDI licensees due for renewal, only four licenses have been processed, while the remaining nine have unresolved dues related to APC for the Universal Service Fund (USF).

Impact on Telecom and Banking Ecosystem

The failure to renew telecommunication licenses poses a significant threat to the telecom ecosystem, potentially affecting service quality, business operations, and the economy at large.

OFC Infrastructure Overview

Pakistan’s Long Haul and Metro Optical Fiber Cable (OFC) Network includes:

  • Long Haul OFC: 27,567 km
  • Metro OFC: 18,337 km

Major operators:

  • Multinet Pakistan: Operates 6,993 km of Long Haul OFC, leased to Telenor, Jazz, and CMPak for long haul and Fiber to the Site (FTTS) connectivity.
  • Worldcall: Manages 1,800 km of Long Haul OFC and 734 km of Metro OFC.

Potential Disruptions

If LDI licenses are not renewed, the following disruptions could occur:

  • Mobile services: 50% of mobile traffic could be disrupted, causing many towers to go offline.
  • Internet services: 10% of internet traffic could be affected, impacting overall connectivity.
  • Banking services: Up to 40% of ATM machines may become non-operational, severely disrupting banking operations.
  • Corporate intranets: Many corporate networks could face downtime, affecting business continuity.

Satellite Services Impact

Several LDI licensees, including Telecard, Multinet, Retone, and Dancom, operate satellite hubs crucial for communication needs:

  • Redtone LDI: Provides 496 Mbps throughput, mainly to banks, CMO sites, law enforcement agencies (LEAs), and government departments.
  • Telecard: Supports 2970 Mbps, primarily serving banks and government institutions.
  • Multinet Pakistan: Handles 41 Mbps for banks and CMOs.
  • Dancom: Delivers 640 Mbps, mainly for banks.

Non-renewal of LDI licenses will impact services to banks, mobile operator sites, and critical government and LEA connectivity in remote areas. Additionally, the disruption of international incoming traffic will lead to increased strain on remaining LDI operators, risking degraded service quality and interrupted international communication.

Cross-Border Connectivity

Pakistan has several cross-border microwave and OFC links, especially with Afghanistan, facilitated by Multinet Pakistan, enhancing international connectivity. If LDI licenses are not renewed, international data transit could be interrupted, leading to connectivity issues for operators in Afghanistan that rely on these routes.

In summary, the non-renewal of LDI licenses poses a serious threat to Pakistan’s telecom, banking, and cross-border connectivity, potentially leading to widespread disruptions across various sectors.