ISLAMABAD – Zong, one of major telecom brands in Pakistan, is facing unwanted situation as Pakistan Telecommunication Authority PTA moves against it over Non-Payment of License Renewal Charges.
PTA reportedly started enforcement proceedings against China Mobile Pakistan Limited (CMPak), operator of the Zong network, for failing to pay Late Payment Additional Fee (LPAF) of $11.77 million.
The dispute revolves around the delayed renewal of CMPak’s telecom license, originally issued to Paktel Limited in 90s and later acquired by CMPak. While the license was revalidated in 1997 and renewed in 2004, the latest renewal was due in October 2019.
Then federal government issued Policy Directive outlining the financial and regulatory terms for cellular license renewals. CMPak contested the renewal fee in the Islamabad High Court, filing a writ petition challenging the government’s policy. Despite ongoing legal proceedings, the court ordered CMPak to pay 50% of the license renewal fee as an interim measure.
In compliance, CMPak made two payments totaling Rs18.46 billion in November 2019. However, since these payments were made after the deadline, PTA imposed an additional late fee of $11.77 million.
If Zong fails to clear this outstanding fee, it could face strict regulatory actions, including penalties, restrictions on its license, or possible disruption of its telecom services. However, CMPak retains the option to contest the enforcement or negotiate with the PTA to resolve the matter.
Last year, Pakistani Court rejected Zong’s appeal and ordered the company to refund Rs2 billion to customers for illegal service, maintenance, and operational fees charged between April and July 2019.
The court upheld PTA ruling, saying such charges on prepaid and postpaid mobile cards unlawful. Despite assurances from telecom operators to stop these fees, Zong contested the refund but ultimately lost the case.
Zong ordered to refund over Rs2Billion in telecom service fees after losing court appeal
