ISLAMABAD: The Pakistan Telecommunication Authority (PTA) has commenced the issuance of class licenses for district level internet service provision across Pakistan, aiming to promote local entrepreneurship, strengthen broadband infrastructure, and enhance digital inclusion, particularly in under-served and remote areas.

Boosting Local Internet Service Providers

Under the new licensing regime, small and medium-scale operators will be able to offer internet services at the district level, improving last-mile connectivity and expanding broadband access beyond major urban centres.

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The PTA said the initiative is designed to lower entry barriers for local service providers while enabling faster and more cost-effective expansion of internet services in areas where connectivity remains limited.

License Validity and Fee Structure

According to the PTA, the class license will be valid for ten years.

Applicants will be required to pay:

• A one-time initial licence fee of Rs300,000
• An Annual Licence Fee (ALF) of Rs100,000 for the first year, payable before the licence becomes effective

For subsequent years, the ALF must be paid in advance and will be subject to an annual increase of 10 percent.

Application Process and Availability

Interested parties have been advised to submit applications through the PTA’s online application portal, following the prescribed checklist.

The template of the class licence has also been made available on the PTA’s official website to ensure transparency and ease of access for applicants.

Supporting Digital Inclusion Goals

The PTA stated that the move reflects its continued commitment to:

• Expanding broadband penetration
• Promoting digital inclusion
• Facilitating sustainable growth in Pakistan’s telecommunications sector

By enabling district-level operators, the authority aims to address connectivity gaps in remote and under-served regions where large telecom operators may face economic or logistical constraints.

Link with Revised IoT and SRD Regulations

The announcement follows PTA’s recent revision of its Internet of Things (IoT) and Short Range Devices (SRD) regulatory framework, introduced last week to accelerate the development of a nationwide IoT ecosystem.

The updated framework provides detailed guidelines for IoT service provisioning, with a strong emphasis on the use of shared and unlicensed spectrum for Low Power Wide Area Networks (LPWAN) on a non-interference, non-protection basis.

Related: PTA Starts Licensing for VPN Providers

Under the revised policy:

• IoT and SRD services using licensed or exclusively assigned spectrum may be offered by Cellular Mobile Operators (CMOs) and other licensees under existing licence conditions
• Mission-critical IoT services will continue to operate exclusively on licensed spectrum

The PTA said the changes align with international best practices and the government’s broader vision for digital transformation.