Why PTCL allowed un-authorized usage of 3G EVO services ? Audit report

ISLAMABAD ( ABRAR MUSTAFA )

Why PTCL allowed un-authorized usage of 3G EVO services ?
Why a strict legal action was not taken according to the act even after Survey Results of Enforcement Division ?
Who is responsible for the loss to national exchequer ?
What steps have been taken to stop PTCL for not using/ introducing 4G EVO services ?
What disposal was made of M/s ISPAK complaint ?

Due to unauthorized usage of 3G EVO services by the Pakistan Telecommunication Company Limited ((PTCL ) on 1900 MHz band allocated for WLL services, the national exchequer sustained estimated loss of US$ 511 million. Pakistan Telecom Authority did not take action against PTCL it has its own determination No. 8-1/04/ltd Mob/LL&M/PTA on 13th July, 2005 in which all WLL operators were directed to implement single cell limited mobility. The audit report get by Telecoalert.com revealed that during review of working paper No. WP-PTCL-04/14/WLL&M/PTA on Unlimited Mobility given to PTCL EVO service by PTA—Backdoor Entry to 3G for 223rd part-1 PTA Authority Meeting, it has observed that PTA issued a determination.
36 mbpsAccording to De – Regulation Policy 2003, Clause 4 . 1 . 10, Access Promotion Rules, 2004 Clause 2 ( 1 ) (m) and PTCL License condition 4. 5.2, all WLL operator have to implement single cell (signals for improvement) limited mobility in their local loop without any segregation between voice and data.
It has further observed that Internet Service Providers Association of Pakistan ( ISPAK), launched a complaint on the issue to PTA dated 11th February, 2014 that PTCL planned to kill the 3/ 4 G spectrum auction before even its commencement. PTCL has already made a backdoor entry to 3G with full mobility by just paying the cost of WLL spectrum. PTCL has been using its EVO service with full mobility for last many years in violation of the license has been using its EVO services with full mobility for last many years in violation of the license conditions but Regulator has been a silent spectator. The ISPAK further stated that M/s Nayatel has submitted an official complaint to PTA on 31st December, 2112 but no action was taken by the Authority.
PTCL unauthorized usage of 3G EVO services damaged national exchequer estimated loss of US$ 511 million as detailed below:
Cost of Mobile Cellular License …………………………………………….  US$ 291 million
Cost of WLL license for all telecom regions ( 10+10 ) MHz CDMA …US$ 75 Million
Difference between both ( 01—02 ) …………………………………………US$ 216 Million
Loss on account of 3G spectrum used by PTCL on the basis of base
Price set in auction for 10 MHz ………………………………………………US$ 295 Million
Total Estimated Loss ……………………………………………………………US$ 511 Million

The audit report more revealed that the study of working paper further exposed that WLL Limited Mobility Verification Survey was conducted by Enforcement Division in August-September 2012 and the result of survey was reported to Director General Licensing on 14th February, 2013 with a considerable delay of five (05) months in the same premises. The Result of Survey Report revealed that none of the WLL operators are complying with the directions issued on 13th July, 2005. PTA issued just warning letter to all WLL operators instead of taking legal action as required in Pakistan Telecommunication ( Re-organization) Act, 1996. This all showed undue favor to PTCL for unauthorized using of 3G spectrum and now as heard that PTCL going to launch 4G EVO services whereas the same has not auctioned to PTCL.

Audit Officer raised five questions in his report to Telecom Authority,
(a) Why PTCL allowed un-authorized usage of 3G EVO services ?
(b) Why a strict legal action was not taken according to the act even after Survey Results of Enforcement Division ?
(c) Who is responsible for the loss to national exchequer ?
(d) What steps have been taken to stop PTCL for not using/ introducing 4G EVO services ?
(e) What disposal was made of M/s ISPAK complaint ?

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