Govt anticipates Rs. 27 billion non-tax revenue from 3G/4G Licenses. The government Pakistan has budgeted Rs 27 billion under the head of non-tax revenue for the next fiscal year 2020-21 against Rs 52.73 billion budgeted for the present fiscal year which was revised later to Rs 125 billion, but the licenses renewal matter is in the court.
Govt anticipates Rs. 27 billion non-tax revenue from 3G/4G Licenses. The government Pakistan has budgeted Rs 27 billion from 3G/4G licenses under the head of non-tax revenue for the next fiscal year 2020-21 against Rs 52.73 billion budgeted for the present fiscal year which was revised later to Rs 125 billion, but the licenses renewal matter is in the court.
As per the budget documents of 2020-21, under the head of income from property and enterprise that is Pakistan Telecommunication Authority (PTA) Surplus, the government has intended to generate Rs 2 billion in the upcoming fiscal year against the budgeted one billion rupees for the current fiscal year which was revised to Rs 6 billion for 2019-20.
Pakistan Telecommunication Authority (PTA) issued Cellular licenses to two new cellular mobile operators i.e. M/s Telenor Pakistan and M/s Warid Telecom on May 26, 2004 for a period of 15 years, under the Mobile Cellular Policy, 2004, on payment of $291 million after its offer for sale.
Cellular license of M/s Paktel Limited, which is now known as China Mobile Pakistan (Zong), was also renewed by PTA under the 2004 Policy on October 23, 2004 for a period of almost 15 years on payment of $ 291 million.
These licenses were held due for their renewal on May 25, 2019 and October 22, 2019 respectively. In 2014, the government of Pakistan renewed the license of Ufone at $291 million.
In the case of non-payment of an upfront fee, the license will become expired and the terms and conditions relating to enhanced quality of service and coverage of network will be finalized in line with applicable regulatory practice.
The government had approved renewal of licenses of two mobile operators i.e. Jazz and Telenor Pakistan at $450 million each while the third operator –CM Pak at $470 million.
Three mobile operators have deposited around Rs 107 billion in Federal Consolidated Fund (FCF) for license renewal including $238.6 million (Rs 37.16 billion) by China Mobile (CM Pak), $224.6 million (Rs 35.262 billion) by Telenor Pakistan and Jazz each.