Pemra denies concessions in DTH licence

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ISLAMABAD, Nov 7: The Pakistan Electronic Media Regulatory Authority (Pemra) has declined before the Supreme Court to allow alteration of the terms of the direct to home (DTH) licence being sought by a media organisation.

“The grant of concessions as demanded by the petitioner (Cross Current Private Limited) would have resulted in putting potential competitors at a disadvantage while being contrary to the spirit of the Pemra rules and regulations which encourage the facilitation of open and fair competition,” a reply submitted by Advocate Tariq Aziz on behalf of the authority said.

A bench, headed by Justice Anwar Zaheer Jamali, had taken up the petition accusing Pemra of failing to discharge its regulatory duties to preserve the socio-cultural values of society and freedom of trade and business enshrined in the constitution.

The petition accused Pemra of failing to allow launching of DTH projects and to properly regulate and modernise the cable television industry.

The petitioner had sought directives for Pemra to take steps to digitise and modernise cable TV networks with latest censorship equipment and to stop and block sale of illegal Indian and other DTH services in the country.

Pemra said it had invited expressions of interest (EoI) for the launch of DTH services in Pakistan on May 17, 2003, and initiated a pre-qualification process.

Bidding for the DTH license took place on Oct 21, 2003, in which 10 pre-qualified companies were invited. A base price of Rs50 million was approved for the award of two non-exclusive DTH licences.

Later, Pemra announced the Cross Current and ARY Communications were joint successful bidders for the two non-exclusive DTH licences.

The petitioner deposited Rs37.5m -- 15 per cent of the bid -- with Pemra.

Pemra alleged that later the firm attempted to alter the terms of the licence because it did not possess the capabilities required to ensure a successful launch of the DTH project or the financial strength to acquire the permit.

The authority also denied the allegation levelled by the petitioner that it had acted in a discriminatory manner and said the process for the grant of the licences was governed solely by the Pemra Ordinance and Rules and Regulations. “The petitioner cannot deviate from the statutory requirements stipulated in the law,” the reply said.

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