Zong, a leading telecom operator in Pakistan, is under scrutiny as the Pakistan Telecommunication Authority (PTA) initiates enforcement action against its parent company, China Mobile Pakistan Limited (CMPak), over non-payment of license renewal dues.
The dispute centers on an overdue telecom license originally issued to Paktel in the 1990s, which CMPak later acquired. Though the license was renewed in 1997 and 2004, the latest renewal was due in October 2019.
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Following a government directive outlining renewal terms, CMPak filed a petition in the Islamabad High Court challenging the fees. The court, however, directed CMPak to deposit 50% of the amount as an interim measure, leading to payments totaling Rs18.46 billion in November 2019.
Since these payments were made after the deadline, PTA has now imposed a Late Payment Additional Fee (LPAF) of $11.77 million. Failure to pay this could result in regulatory penalties, operational restrictions, or potential service suspension. CMPak, however, may still challenge or negotiate the penalty with the regulator.
In a related issue last year, Zong was ordered by a Pakistani court to reimburse Rs2 billion to users for unauthorized deductions made between April and July 2019. The court backed PTA’s decision, deeming service and maintenance fees on mobile recharges unlawful. Despite challenging the ruling, Zong was compelled to comply.
