Public Notice: Local Loop licensing in Pakistan shall be unrestricted and open for all Telecom Regions

 

Fixed Local Loop (“FLL”) License issue for the provision of fixed line telecommunication services within a Telecom Region using medium excluding wireless.

Wireless Local Loop (“WLL”) License issue for the provision of fixed line telecommunication services within a Telecom Region using mediums including wireless, with limited mobility.

Application Form (Information Memorandum)

FAQs - Local Loop

Application Processing

Information to be provided by Applicant

• An Applicant shall make a separate application for LL License and LDI License. In case Applicants are interested to obtain LL license in more than one region, separate application shall be filed for each region along with necessary documents. Total number of regions is 14.
• As part of the Application, an Applicant must provide the following:

1. Letter of Application
2. Checklist
3. Fees in the following amounts, payable in Pak Rupees, by direct credit to the designated bank accounts of the Authority, under intimation to the Authority, through normal banking channels:
   1. Application fee of US $ 500 (or equivalent Forex value in PKR)
   2. Initial fee – LL Licence of US $ 10,000/- (or equivalent Forex value in PKR) per Region applied for,
   3. Initial fee – LDI Licence of US $ 500,000/- (or equivalent Forex value in PKR), and
   4. Initial fee – Radio Frequency Spectrum, for a requested block in a Designated Band.
4. For Applicants for LDI Licence, a completed Stand by letter of credit of US $ 10 Million (or equivalent Forex value in PKR) in favour of the Authority.
5. Certificate of Incorporation of the Applicant and its Memorandum and Articles of Association;
6. Names of the Directors of the Applicant, and relation of each Director to any other Operator licensed by the Authority or any other Applicant for a Licence;
7. Shareholders of the Applicant, including details of each shareholder’s equity ownership;
8. Names of each Affiliate of a shareholder of the Applicant, where the Affiliate is an Operator or an applicant for a Licence, and description of the relation to the Applicant;
9. Copies of National Identity Card (for Pakistani national) / Passport (foreign nationals) and other antecedents of the Directors and authorized representative of the company.
10. Provide undertaking for the following:
    1. That the Company or its Directors have never been declared insolvent by a court of law
    2. That the Directors of the company have never been convicted by a court of law for major offences or unethical/immoral turpitude ( other than minor offences)
    3. That neither the applicant Company nor its group/consortium members are defaulter (s) with reference to other PTA licences/transactions
11. Applicant’s National Income tax number;
12. Certificate on original letter head from the Group/Joint venture/Consortium members that they are the participants for LL/LDI licence in Pakistan through the applicant company.
13. Certificate of good standing with the fiscal administration;
14. Resolution of the Board of Directors of the Applicant authorizing the individual who submits and signs the Application.
15. Special Power of Attorney by the Applicant authorizing the individual who submits and signs the Application.
16. A brief description of the following:
    1. Telecommunication experience of the Applicant, its key management personnel and its shareholders.
    2. Business plan for the initial five years of operations, indicating areas to be served, services to be offered, projected revenues, operating expenses and capital requirements.
    3. Committed financial resources including a list of all sources and amounts of equity and debt financing required to finance the business plan in the first 5 years of operation. Capital must show at least a 20% equity component.
    4. Technical plan, including proposed network map and architecture.
17. The Applicant must specify which radio frequency spectrum it requests, by frequency band, block and Region. If the Applicant requests radio frequency spectrum in the Designated Bands, the Applicant must provide an expected roll-out scenario projected at 18 months following the Effective Date, including (i) a map showing the expected service contour for the Licensee’s service using the requested radio frequency spectrum, and (ii) the number and approximate locations of radio base stations to be deployed in serving the service contour.
18. If an Applicant for a LL License requests blocks in alternative radio bands in a Region, the Applicant must provide the information described in (p)(ii), (iii), (iv) and (q) above for each such block that is applied for. This information can be provided for a preferred block, with an explanation of the differences if an alternative block is employed by the Applicant.
19. Affidavit of the person granted the power of attorney by the Applicant.
20. The Applicant shall submit one original and two copies of the complete Application package to the Authority before the deadline for the submission of Applications. The original package and the copies shall be clearly marked “original application” and “2nd”, “3rd” copies, as applicable. In the event of discrepancy between two copies, the original shall prevail. Each Application package shall be clearly marked as follows:
    1. Application for LL or LDI Licence (as the case may be)
    2. Name of Applicant
    3. Local contact name, telephone, fax and e-mail
21. The three copies of the Application shall be packaged together in a single box or other container. The container shall be sealed; that is securely packed and closed, so that it is not possible to open it without visual evidence thereof.
22. Upon receipt, the Authority will provide a written receipt confirming the delivery of each Application received.

Eligibility Criteria

The following are the eligibility requirements for a Licence:

1. The applicant shall be an incorporated or registered company in Pakistan under the Companies Ordinance, 1984 .
2. The applicant submits all the documents mentioned above.
3. The applicant submits all required initial fees to the Authority by the applicable deadlines referred to in this Information Memorandum.
4. The applicant satisfies the Authority that:

1. Technical plan and business plan are feasible;
2. Adequate financial resources are available to implement the business plan;
3. The applicant’s key management personnel demonstrate the minimum degree of required experience

Grounds for Disqualification

• Grounds for Disqualification

Specific Conditions

• Specific Conditions of (LL) Licensees

License Template:

• FLL License Template for Pakistan

Checklist:

• Checklist for Application for FLL License for Pakistan
• Checklist for Application for Fixed Local Loop (FLL)License for AJ&K and GB Telecom Regions

FEE SCHEDULE FOR THE LICENSES ISSUED BY PTA
Service	Application Fee	Evaluation Fee	License Fee	Renewal Fee	Royalty Fee
Local Loop (LL)	US $500 (or equivalent Forex value in PKR)		US $10,000 (or equivalent Forex value in PKR) Per PTCL Region	0.5% of annual gross revenue minus inter-operators payments