'Wrong Policy Tying Telecom License Price to Dollar Leads to Digital Catastrophe,' Says Tele Industries

‘Wrong Policy Tying Telecom License Price to Dollar Leads to Digital Catastrophe,’ Says Tele Industries

Anum Razzaque

KARACHI: Telecommunication companies expressed their anger towards the government’s decision to renew licenses by paying in dollars.

The CEO of Jazz, a telecommunications company, stated that due to the ongoing devaluation of currency, they are unable to determine the amount they will have to pay in installments next year.

He stated, “Sadly, the wrong policy of tying the telecom license price to dollars is pushing us from a digital emergency to a digital catastrophe.

PKR devaluation has jeopardized the business case for telecom companies, as our license fees & interest on instalments are pegged to the US dollar. Last year 50% license renewal fee cost us PKR 44.5 billion, and this year, just 10% instalment alone costs over PKR 13 billion
— Aamir Hafeez Ibrahim (@aamir_ibrahim01) February 2, 2023

We need to fix this mismatch before telecommunication companies’ ability to further drive digital transformation becomes irrevocably depleted,” said the CEO of Telenor.

While telecom industry generates its revenue in PKR, spectrum auctions, renewal & instalments are priced in US$ exposing telcos to massive currency devaluation risk. Need to fix this mismatch before telcos capacity to further power digital transformation gets irrevocably depleted
— Irfan Wahab Khan (@irfanwahabkhan) February 2, 2023

The CEO of PTCL, Hatem Bamatraf, stated that the situation has made business planning impossible due to the uncertainty caused by fluctuating exchange rates, rising interest rates, and increasing fuel and electricity tariffs.

The situation has made business planning impossible due to the uncertainty caused by fluctuating exchange rate, rising interest rates, fuel & electricity tariffs. On top of that Telecom industry remains heavily and unfairly taxed.
— Hatem Bamatraf (@ceoptclgroup) February 2, 2023