INSTA-TERMINATION: PTA terminates license of Instaphone

January 7, 2008

INSTA-TERMINATIONPakistan Telecommunication Authority (PTA) has, with immediate effect, terminated the license of M/S 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-organization) Act. The Authority has issued a detailed determination in this regard. See full official notice at PTA site by clicking here.

Instaphone had been loosing since ever. PTA figures for Nov. 2007 show Instaphone at 329,743 subscribers or just 0.44 percent of the current cellular subscriber base of 74+ million!!!Instaphone further had defaults on its license fee of S291 million that were being relaxed by PTA to let Instaphone acquire some investment support. With lingering humungous license fee pending, virtually no brand equity, i doubt if the existing user base was generating any decent ARPU and sunk capital in AMPS network certainly did not have a case for a sell off. I think the investors just “used” the political skirmishes as a quick excuse out of the negotiations so that they could walk out without any moral/relationship related burden -)