The Pakistan Telecommunication Authority (PTA) is reviewing a major shift in its Local Loop (LL) licensing regime. Currently, LL licensees must provide both voice and data services, but the regulator is now considering whether they should be allowed to operate solely as Internet Service Providers (ISPs), focusing on broadband without mandatory voice telephony.
Potential Regulatory Shift
The move aims to promote broadband growth by giving service providers more flexibility. If implemented, LL licensees could invest in high-speed data networks without the burden of mandatory voice services. This shift aligns with global trends, where internet-based voice services (VoIP) are replacing traditional telephony.
PTA has launched a consultation process to gather industry feedback on the proposed changes. The objective is to assess whether the current LL licensing regime supports innovation, competition, and efficient service delivery.
Key Objectives of the Consultation
PTA’s consultation seeks to:
- Evaluate the Current Framework: Determine if LL licensing requirements align with modern communication technologies.
- Gather Stakeholder Feedback: Understand industry perspectives on potential regulatory changes.
- Ensure Fair Competition: Promote a competitive environment that benefits consumers with better and more affordable services.
Impact on Voice Services and Numbering Resources
A major consideration is whether LL licensees should retain the option to provide voice services through modern technologies like VoIP, Network Function Virtualization (NFV), and Software-Defined Networking (SDN). If voice services remain mandatory, the consultation will also explore a more flexible, technology-neutral approach.
Additionally, PTA may revise the numbering resource allocation framework for LL licensees offering next-generation voice services. This could help streamline voice service provisioning in Pakistan’s evolving telecom landscape.
Our Take
This potential shift could be a game-changer for Pakistan’s broadband sector. Allowing LL licensees to operate solely as ISPs could accelerate broadband penetration, reduce operational costs, and improve service quality. However, it remains to be seen whether stakeholders will support this change, as traditional voice services still hold significance in certain markets. The consultation process will be crucial in shaping the future of LL licensing in Pakistan.