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The Telecom Licenses are Privileges subject to Regulatory Discretion, not Legal Rights; ZONG's use of Additional Spectrum beyond its License Period was deemed Unauthorized and Illegal --- Islamabad High Court, Islamabad

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Islamabad 22-08-2024: In a significant ruling, the Islamabad High Court has dismissed petitions filed by China Mobile Pakistan Limited (ZONG), challenging the Pakistan Telecommunication Authority (PTA) and Frequency Allocation Board's (FAB) decisions regarding the renewal of its telecom licenses. The Court's decision reinforces the Regulatory Bodies' authority over Spectrum Management and the conditions under which Telecommunications Licenses are granted and renewed.

ZONG, a major player in Pakistan's telecom sector, filed writ petitions seeking the renewal of its licenses under the same terms and conditions as its original license, which included additional spectrum in the 1800 MHz band. This additional spectrum had been temporarily allocated to ZONG due to cross-border interference affecting its 900 MHz band operations. ZONG argued that the continued use of this additional spectrum was essential to its operations and sought a Court order to compel the PTA to renew its license accordingly.

The Islamabad High Court, presided over by Mr. Justice Miangul Hassan Aurangzeb, examined the regulatory framework established under the Pakistan Telecommunication (Re-Organization) Act, 1996, and the relevant policy directives issued by the Federal Government. The Court concluded that ZONG's continued use of the additional spectrum after the expiration of its license was unauthorized and illegal.

The judgment emphasized that licenses are privileges granted by the State, not legal rights, and their renewal is subject to the discretion of the Regulatory Authorities based on current Policy Frameworks. The Court also underscored the limited scope of judicial review in matters of licensing, particularly when the discretion of Regulatory Bodies is involved.

The ruling has significant implications for the Telecommunications Industry, as it upholds the principle that Spectrum is a scarce resource that must be managed judiciously. The Court's decision also reaffirms the PTA and FAB's authority to impose conditions on license renewals in line with evolving policy directives.

ZONG has been ordered to vacate the additional spectrum in the 1800 MHz band and to make payments for its unauthorized use of this spectrum since the expiration of its original license.

This ruling sends a strong message to Telecom Operators about the regulatory landscape in Pakistan, particularly concerning the management of spectrum resources. It highlights the importance of compliance with regulatory directives and underscores the government's commitment to maintaining a level playing field in the telecom sector.

As the industry responds to this decision, it remains to be seen how telecom operators will navigate future license renewals and spectrum allocations within this regulatory framework.