Pakistan’s telecommunication sector is facing a potential crisis due to unresolved disputes over license renewals and outstanding payments between the government and Long-Distance and International (LDI) operators.

The Pakistan Telecommunication Authority (PTA) has warned that failure to resolve these issues could severely impact the nation’s telecom infrastructure.

Read more: PTA Reports Two of Seven Submarine Cables Affected

The PTA has alerted the Ministry of IT that if LDI licenses are not renewed soon, up to 50% of mobile traffic might be affected, leading to potential shutdowns of mobile towers and a 10% reduction in internet traffic.

Additionally, there is a risk that 40% of bank ATMs could go offline, and satellite services might face interruptions.

The dispute involves Rs 76 billion owed by 10 LDI companies for Access Promotion Contribution (APC) and Universal Service Fund (USF) payments.

Failure to renew the licenses could disrupt global mobile and internet connectivity and cause communication blackouts in remote areas and government offices.