ISLAMABAD, Dec 5: The Pakistan Telecommunication Authority on Monday warned the Pakistan Telecommunication Company Limited (PTCL) of legal action if it failed to improve its deteriorating quality of services.

PTA chairman Shahzada Alam Malik told reporters at the regulatory authority’s headquarters that the new PTCL management was not taking its inspection reports seriously and if they failed to improve, the authority would take legal action as per provisions of the Telecom Act that entails heavy fine and cancellation of license.

“There is a growing complaint about delayed fault clearance, poor inquiry services, excessive billing and high call failure rate,” Mr Malik said.

In June 2005, 26 per cent shares of the telecommunications giant were sold out to UAE’s Etisalat for $2.6 billion with full management control.

“Though the company has not yet been given show-cause notice, the time has come where the authority has to resort to such an extreme step”, he warned.

On Millicom International Cellular Company’s announcement to wind up Paktel operations in Pakistan, the PTA chairman assured its subscribers that they might sell the company but the service could not be closed down.

All this hue and cry is raised because the authority has refused to accept their request to defer the instalment of $29.1 million, which was due in October 2006. In addition to the current installment, the operator also owes Rs19 million to the authority on account of numbering charges and radio base stations (RBS) dues, besides they have to pay two per cent of installments as surcharge on delayed payment.

The license of M/s Paktel, with total subscribers of 1.4 million, was renewed on October 23, 2004 against an initial license fee (ILF) $291 million on installments spreading over three years.

They have already paid $59 million in installments while the PTA has issued show-cause notice to the Paktel in this regard.

Likewise, the authority will not allow M/s Instaphone to switch to a different technology called code division multiple access (CDMA) unless it cleared its outstanding dues.

The licence of M/s Instaphone was renewed in April 19, 2005 with a three-year schedule of 50 per cent payment of ILF while the remaining 50 per cent was to be paid afterwards in ten equal annual installments.