PTA fines Rs 10m on WorldCall Telecom ltd

It further directed that the licenses issued to Worldcall Telecom Limited shall stand suspended automatically till the payment of fine

ISLAMABAD: Pakistan Telecommunication Authority (PTA) has imposed a fine of Rs 10 million on WorldCall Telecom Limited—an LDI— for indulging in change of substantial ownership interest and control without the approval of the regulator, said an order of the Authority.

According to a notice of the Pakistan Stock Exchange (PSX), the ARY Group has appointed AKD Securities for its due-diligence of the WorldCall Telecom Ltd two weeks ago, while the source confirmed that ARY had already acquired its 51 per cent shares in January 2020.  

The company is facing the charges of substantial change of shareholding without prior written intimation to the Authority and failure to fulfill its legal obligations could not convince the Authority in written reply and personal hearing of the Show Cause Notice and hence fined, newztoday.com said.

The PTA further directed to the Licensee to deposit the fine within period of seven working days and in case of failure to comply the order of the Authority, it further directed that the licenses issued to Worldcall Telecom Limited shall stand suspended automatically till the payment of fine.

The Licensee has not denied change of substantial ownership interest/ control of the company. It is matter of record that the Licensee did not notify the Authority in the manner as required under Rule 11(5) of the Rules. Moreover, the order reads, “said transaction was executed without prior written approval of the Authority as required under clause 12.4 of the License, the authority observed.”

The Licensee has made every possible effort to avoid the proceedings. Since, the duration of license granted to the Licensee is about to expire in the year 2024 and huge amounts of Rs 9.06 billion remain payable by the Licensee, the order read.

In order to avoid any adverse legal consequences against the shareholders, directors and management of the Company, the order further noted as saying that the Licensee is required to fulfill its legal obligations with regard to carrying out the telecom business pursuant to the licenses granted by the Authority including but not limited to payment of all regulatory dues.

It is extremely important to make reference to the conduct of the Licensee by putting on record the consistent failure of the Licensee to pay outstanding dues on account of Annual Regulatory Dues (ARDs), Annual Radio Frequency Spectrum Fee (ARFSF), Annual Numbering Charges, Initial Spectrum Fee (ISF), Microwave BTS Charges and APC for USF Contribution.

WorldCall launched its business in June 1996 with payphone operations. Amid fundamental shifts in technology and industry, innovation and dedication led us to growth in diversified businesses with a range of services designed to serve the needs of the local market.

From Cable Broadband to Wireless Broadband, from Cable TV to Video on Demand, from LDI Services and Fiber Optic Network to Wireless Local Loop Telephony, WTL has crossed a number of milestones. WTL offers an array of services under three major service categories i.e. Data, Entertainment & Voice.

About The Author