Telecom Operators Express Concerns Over IT Ministry’s Installment-Based Smartphone Policy
Telecom operators are raising concerns over the Ministry of IT’s move to introduce installment-based smartphone provisions, warning that this policy could have negative impacts on Pakistan’s digital landscape.
According to media reports, two out of four mobile operators have expressed reservations over a key provision of the policy, which mandates the blocking of all SIM cards registered to defaulters. They argue that such measures would not only deprive citizens of their digital rights but also negatively affect digital inclusion in the country.
Telecom companies insist that in other countries, it is typically the governments, not telecom operators, that bear the financial burden of defaults. They are unwilling to take on the risks without a workable mechanism to recover potential losses. Currently, this policy is under discussion, as the Ministry of IT has tasked telecom operators with reaching a consensus.
The Ministry has finalized the framework and shared it with telecom companies, but the key points involve proposed enforcement mechanisms to block SIM cards of defaulters. Telecom operators may have to bear the financial burden in such cases. Some operators support this proposal, while others strongly oppose a centralized system that would suspend all SIM cards linked to defaulters’ ID cards.
Moreover, telecom operators have voiced concerns that they should not be held responsible for default risks or subsidy costs. The draft of this policy was initially prepared in November 2023 and sent to the cabinet for approval in early 2024. However, the cabinet returned it to the Ministry of IT, instructing them to review the policy with the Law Division.
After the general elections, the revised version was presented to the new IT Minister Shiza Fatima, who worked on an updated draft incorporating feedback from banks, fintech firms, and telecom operators.
Despite efforts to improve the policy, the lack of consensus among Chief Marketing Officers (CMOs) is hindering progress. Without an agreement among operators, the policy cannot be presented to the federal cabinet for final approval.
According to officials from the Ministry of IT, the real challenge is not the installment-based smartphone provision, but rather the enforcement mechanisms against defaulters. The Ministry of IT and the Pakistan Telecommunication Authority (PTA) can only proceed with implementation once clear policy directives are issued by the federal government.
Telecom operators opposing the project have proposed alternative solutions, including higher interest rates or allowing advance payments to mitigate risks. However, the government is not satisfied with these proposals, arguing that smartphones already available in the market under installment plans come with high-interest rates.
