PTA CVAS License in the de-regulated era
Pakistan Telecommunication Industry went through an era of high regulations in the past. In that era, around ten classes of Value Added Services License existed through Pakistan Telecommunication Authority (PTA) depending upon the types of services in the scope.
However, PTA, in its efforts to de-regulate, felt the need to simplify the value added services License regime. As part of this drive, the value added services license were brought down to only two categories as below:
Class Value Added Services License (CVAS) – Data
Class Value Added Services License (CVAS) – Voice
As the name suggested, the “Data” - Class Value Added Services License (CVAS) allows the provider to offer one or many data services to its customers. For example, Vehicle tracking services, Internet Services and others.
The “Voice” - Class Value Added Services License (CVAS) allows the providers to offer Voice related services to its customers. This can include Card payphone services and others.
A third stream of licensing called “Class Value Added Registration Services (CVARS)” is also recently introduced by PTA which allows services like SMS aggregation, Content management, video conferencing etc. to be regulated.
Some of the guidelines for the CVAS License, provided by PTA, are as below:
The Class Value Added Services License (CVAS License) is valid for 15 years.
The Class Value Added Registration Services (CVARS) registration remains valid for 5 years after a fresh registration is required.
The key documents which should be part of the Class Value Added Services License (CVAS License) application to PTA are:
1- A detailed covering letter providing background to the application and the important elements of the business plan
2- Corporate details including company structure, directorship structure and SECP documents
SECP certificate of Incorporation (duly certified by SECP)
Memorandum of Association (duly certified by SECP)
Articles of Association (duly certified by SECP)
Form 29 (duly certified by SECP)
Attested copies of CNIC of the company directors
3- Description of the business plan
Operating plan and services description
Financial forecasts for 3 to 5 years
Quality control and maintenance plan
4- Insolvency Undertaking on notarized stamp paper for company directors
5- Non-defaulter for PTA undertaking on notarized stamp paper for company directors
It is worth mentioning that once the above documents are provided to Pakistan Telecommunication Authority (PTA), the evaluation is carried out on the following lines:
Financial and economic viability of applicant
Experience in telecommunication and relevant past history
Technical competence of management
Business plan viability
Appropriate measures and expertise in ensuring the quality and stability of the services
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