PTCL Cleared to Take Part in DTH License Auction through a Front Company


PTCL, through a minor company, has gotten the leeway to take part in the up and coming DTH license auction in Pakistan.

The telecom company’s application was already dismisses by PEMRA on different grounds. In any case, the Islamabad High Court (IHC) has acknowledged the request of “Savvy SKY”, a backup of Pakistan Telecommunication Company Limited (PTCL), to be permitted to partake in the DTH Licenses bidding, as per a senior authority of PTCL.

Already, SMART SKY, in the wake of getting rejected, had submitted under the watchful eye of the high court that PEMRA as of late issued a welcome for organizations enlisted in Pakistan to apply and bid for three non-select DTH Distribution Services Licenses (‘DTH License’) for the region of Pakistan.

SMART SKY Limited is a private limited company that’s a solely retained minor of PTCL

SMART SKY alongside nine different organizations, connected because of the start for DTH Licenses. SMART SKY presented its nitty gritty application to PEMRA on Oct fifth, 2015, alongside all imperative data and documents.

As indicated by the appeal submitted in high court:

On Nov 29th, 2015 — just a week before the auction — we received a letter from PEMRA that SMART SKY had been found ineligible for participating in the bidding process for the grant of DTH License in view of Section 25 of the PEMRA Ordinance. PEMRA in the said letter simply communicated its determination as to the SMART SKY’s ineligibility without providing any hearing opportunity before taking its decision.

The supplication contended that PEMRA wrongly connected Section 25(c) of the PEMRA Ordinance 2002 to SMART SKY.

SMART Sky’s request clarified that segment 25(c) accommodates two prohibitive occurrences, whose lion’s share shares are claimed or controlled by outside nationals or organizations. The SMART SKY’s dominant part shareholder is PTCL, which is a Pakistani organization subsequently SMART SKY does not fall afoul of the first piece of Section 25(c). The second being an organization whose administration or control is vested in remote nationals or (outside) organizations.

The appeal further expressed that the Board of Directors of the SMART SKY, and also the Chief Executive Officer of the SMART SKY, are all Pakistani nationals and not remote nationals. Nor there is any a shareholder or administration understanding in presence that vests administration of SMART SKY in any remote organization.

Therefore, in strict terms the SMART SKY does not fall within the mischief of Section 25(c) of the PEMRA Ordinance 2002 and hence the decision is without any legal basis, said the plea.

The second tier of proprietorship or control of an applicant organization is unimportant to the restrictive provisions of Section 25 of the PEMRA Ordinance 2002. This is vital considering that Etisalat is a minority shareholder in PTCL, a Pakistani organization with the greater part of its shares possessed by the Government of Pakistan.

The request likewise reminded that PEMRA has beforehand conceded PTCL, the shareholder of SMART SKY, an exception from the confinements under Section 25(c) when PTCL straightforwardly connected for a media permit (IPTV License) which was then allowed by PEMRA in 2006. Along these lines, PEMRA cannot presently guarantee confinement under Section 25(c) to apply upon SMART SKY by virtue of PTCL being its shareholder.

After IHC’s acknowledgment, now Smart Sky will be taking an interest in the closeout, which was booked for Today (Dec 7, 2015) yet was postponed by PEMRA Chairman only three days in front of auction.

Shahana Naik

The author Shahana Naik

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