ISLAMABAD, Jan 4: The Pakistan Telecommunications Authority (PTA) has, with immediate effect, terminated the licence of Pakcom (Instaphone) on account of company’s failure to pay its outstanding dues.

The payable amount would be recovered under Section 30 of the Pakistan Telecommunication (Re-organisation) Act.

According to details, Pakcom’s licence was renewed on April 19, 2005, for another term of 15 years against the price of $291 million payable in installments as per the licence conditions.

The licensee failed to follow the payment schedule provided in its renewed license. The licensee, through its representative from time to time, requested the authority to allow time to make the outstanding payments.

Despite concessions to the licensee, in terms of time and its persistent failure to make the payments, action, including show-cause, was initiated as per Section 23 of the Act, which was neither satisfactorily replied, nor outstanding dues paid.

According to a statement issued by the authority, in the final hearing on Nov 29, the representative of the Instaphone requested for further time to make the payments, but without any cogent evidence or specific date for the same.

The authority’s considered opinion was that the licensee’s contravention of the terms and conditions of the licence regarding its financial obligations was grave and persistent, resulting in the termination of its licence.

The PTA also directed the Frequency Allocation Board to immediately withdraw its frequency spectrum assigned to Instaphone.