Interim Order Granted In Telecom APC Matter
Over the years, MTC has represented several Long Distance & International (LDI) operators in disputes with the regulator, Pakistan Telecommunication Authority. One of the major disputes is on the calculation and demand of a charge known as the Access Promotion Contribution (APC) for Universal Service Fund (USF), which since 2014 has been discontinued. It is the case of the operators that the APC for USF for certain years was not correctly notified and the consequential demands by PTA are unlawful. This issue has been raised multiple times before the MOITT, national assembly committees and has also been identified by the Auditor General’s office.
In July 2025, PTA issued determinations against the LDI Operators demanding the payment of the APC for USF contribution, the basis of which remains under challenge in statutory appeals and civil suits pending before different Courts. In parallel, PTA also passed orders renewing the LDI Licenses of the operators for a further term of twenty years, subject to inter alia, the payment of the disputed APC for USF.
The remedy to challenge determinations and orders of PTA is provided under Section 7 of the Pakistan Telecommunication (Re-organization) Act, 1996. Previously the jurisdiction was vested with the High Court to adjudicate statutory appeals; however, after the passing of Establishment of Telecommunication Appellate Tribunal Act, 2024, the jurisdiction to hear all appeals now lie with a Tribunal that is yet to be established by the Federal Government.
MTC has filed constitutional petitions on behalf of the Operators before the High Court of Sindh to challenge both the APC determination and the conditional license renewal orders passed by PTA. The High Court has been pleased to pass restraining orders against PTA on the ground that in the absence of a functioning Tribunal, there is no alternative or efficacious remedy available to the operators. The High Court’s order has also enabled the operators to continue rendering licensed services to the public.
Collectively, these operators provide services to a significant share of Pakistan’s long-distance and international telecommunication market and form the backbone of the country’s connectivity infrastructure. Any disruption in their licenses would lead to serious consequences for Pakistan’s telecom and digital ecosystem, from international connectivity to mobile service quality and financial networks, including digital banking operations.
With the matter now before the Court and in the absence of a functioning Tribunal to deal with these issues, a positive and long-term resolution is hoped for, one that encourages both the Federal Government and the regulator to seriously revisit the legality of APC for USF payments and secure the renewal of LDI licenses for another 20 years, ensuring stability, continuity, and growth for Pakistan’s telecommunication sector.
MTC’s team in this matter is led by Arshad Tayebaly, Senior Partner, and includes Abdul Ahad Nadeem, Associate Partner and Nadia Mehek, Associate.