ISLAMABAD: Amid a brewing controversy over the alleged financial relaxation granted to the long distance and international (LDI) companies, the Ministry of Information Technology and Telecommunications has reconstituted a Steering Committee to address the issue.

The ministry issued a fresh notification withdrawing the previous one that granted LDI operators billions of rupees in exemptions.

The ministry said to resolve the pending dispute regarding access promotion charges (APC) the LDIs are required to contribute to the Universal Service Fund (USF) and the timeframe of the steering committee had been extended.

The access promotion contribution on mobile call termination is diverted to the USF, and the amount is determined by the Pakistan Telecommunication Authority (PTA).

The controversy arose as the IT ministry decided to waive the pending amount of APC for USF contribution for the time as the matter was under litigation in its previous decision.

The ministry’s latest notification has empowered the Steering Committee to develop viable proposals and recommendations for an amicable and out-of-court solution to the pending matter.

The head of the steering committee will be Member Telecom, Ministry of IT, other members also from the ministry are senior joint secretary, development and chief finance and accounts officers.

The PTA’s officials in the steering committee include the directors of commercial affairs, finance and wireline.

The representatives of all the nine LDI operators are also members of the steering committee.

The committee will review and evaluate the formula and basis for calculating the principal amount of APC to USF and the applicability of the permissible range as per PTA notifications from time to time.

The committee will also review and evaluate the applicability of the late payment fee, based upon the relevant rules or recommendations of the PTA.

The committee will also suggest payment plans for outstanding APC dues for USF, especially in relation to LDI licence renewal.

Meanwhile, the PTA has also clarified that it has taken up the matter for full recovery of the principal amount, while the IT ministry insists on collecting 100pc of the principal amount for the renewal of LDI companies’ licences.

However, the ministry has maintained that the matter of late payment surcharges will be addressed in accordance with court decisions.

The details compiled by the IT ministry highlight that the total liabilities of the LDI companies amount to Rs76.16 billion, which includes Rs24.11bn as principal amount, and the accumulated late payment surcharges were Rs54.54bn.

Published in Dawn, July 25th, 2024