IHC bars PTA action against Zong

LAHORE – The Islamabad High Court on Wednesday stopped the Pakistan Telecommunication Authority (PTA) from taking any action against China Mobile Pak Limited (CMPak Limited-Zong).

However, in its decision, the IHC ordered the cellular company to deposit the amount of fine imposed by PTA in the court.

Just over a month ago, the PTA had slapped a fine of 100 million on Zong for contraventions and noncompliance of regulatory laws including the sale of grey SIMs, unauthorized sale of SIMs through Kiosks activities and non-serious conduct of the licensee in terms of implementation of the minimum sale price for a mobile SIM.

The panel comprising PTA Chairman Maj. Gen. (r) Amir Azeem Bajwa, Member (Compliance and Enforcement) Dr. Khawar Siddique Khokhar and Member (Finance) Muhammad Naveed passed the enforcement order against the cellular giant.

The Authority also directed the licensee to submit a report, to Director Enforcement at PTA’s HQs, Islamabad, on a quarterly basis for the sale of SIMs in accordance with an applicable regulatory regime on the format as provided.

PTA observed that keeping in view the seriousness of the issue and national security implications, the Authority several times informed the licensee with regards to the violations on its part and directed to take tangible measures against the franchises/retailers/sellers involved in selling/activating SIMs fraudulently which were purportedly being used for illegal activities. These communications were issued to the licensee on a monthly basis for blocking of SIMs being used in grey trafficking.

Use of grey SIMs in illegal activities and heinous crimes is a serious national security concern. This menace of grey SIMs and trafficking has been causing immense loss to the national exchequer on regular basis. More so, such activities also hamper the legitimate business of other license holders.