Govt approves up to 360% increase in radio service charges after 25 years

After nearly 25 years, the government has approved a significant increase in charges for radio-based services (RBS), including mobile stations, to partially cover administrative costs, according to media reports.  

The decision, made last week by the Economic Coordination Committee (ECC), saw a hike in RBS charges for approximately 1,100 radio networks and mobile stations.

According to the Pakistan Telecommunication Authority (PTA), the RBS spectrum and license fees had remained unchanged since 2000, despite inflation rising by over 700% during the same period. 

The revised rates include a 361.3% increase for 748 private radio networks, raising the fee from Rs76 million to Rs350 million per license. Mobile stations used by 144 licensees for aircraft and ships will also see a 300% increase, with fees climbing from Rs713,000 to Rs2.852 million.

Additionally, charges for 165 amateur radio licenses, 17 Inmarsat, and 19 microwave DRS links have doubled. The revised fee for amateur radio licenses is now Rs320,000, while Inmarsat charges have risen to Rs1.25 million, and microwave DRS links are now charged Rs107.84 million.

With these changes, the PTA expects to increase its revenue to Rs463 million, up from Rs131.4 million, marking a 252% rise. However, the increase in foreign exchange revenue is expected to drop by 18%, from $2.021 million to $1.66 million annually.

The ECC expressed frustration over the lack of action on the outdated fee structure, which had been in place for over two decades. The committee directed the Ministry of IT and Telecom to ensure periodic revisions every three to five years, in line with economic changes and technological advancements in the sector.

The PTA is responsible for frequency allocation, license issuance, and fee adjustments for RBS services, including mobile stations, amateur radio, and other telecommunication licenses. The ministry informed the ECC that the previous fee structure no longer matched the costs incurred in managing licenses and overseeing spectrum usage, necessitating the revision.