Telecommunication in Pakistan

Rs 400 million FED liability raised against cellular firm challenged

2010-07-27T01:52:00.000-07:00

News Paper: Business Reorder

ISLAMABAD (July 25 2010): A huge amount of tax liability of Federal Excise Duty (FED) under Sales Tax mode, raised against a leading cellular company by Large Taxpayer Unit (LTU) Islamabad, has been challenged where provisions of section 36 of the Sales tax Act 1990 have been invoked to create a demand of over Rs 400 million against the company.

Sources told Business Recorder here on Saturday that the section 36 of the Sales Tax Act is related to assessment of tax in case any unusual thing has been detected during audit proceedings under Sales Tax Act 1990. In this case, the order passed by the LTU Islamabad under section 36 of the Sales Tax Act is time barred for over 100 days. The FBR has to explain as to how they can extend the limitation under section 74 of the Sales Tax Act when original limitation under section 36 has been expired.

Details revealed that in the case of leading cellular company, the LTU Islamabad has passed an order on a show cause notice issued in 2007 in sheer disregard to the limitations prescribed under section 36 (1) of the Sales Tax Act, 1990 (Act) and thereby creating a demand of over and above Rs 400 million.

It has been learnt from reliable sources that a show cause notice was issued in May 2007 by the then Additional Collector of Sales Tax of the Collectorate of Rawalpindi; however, no order was passed within the prescribed limitation u/s 36(3) of the Act ie, within 180 days from the date of issuance of the show cause notice.

The Large Tax Payers' unit Islamabad reinitiated the proceedings on the cellular company in March 2010 after obtaining alleged condonation u/s 74 of the Act from the Federal Board of Revenue. It was argued by the cellular company that the proceedings were barred by limitation but the Additional Commissioner without adhering to the legal provisions passed the order on June 30, 2010 and created a demand against the company to be paid instantly.

The Order in Original was challenged in writ jurisdiction before the Lahore High Court, Rawalpindi bench on July 23, 2010. The petition was heard by Justice Asad Munir; who after hearing at length issued notice to the tax department for a date in August for filing the Para wise comments; however, in the meantime the operation of the order in original was suspended.

It was argued before the learned judge that no order u/s 36 (1) & (2) of the Sales Tax Act can be passed after the lapse of 90 days of the issuance of the show cause notice or within the extended time of 90 days by the Collector/Commissioner after giving reasons in writing. No such extension was allowed. It was further argued that the limitation is to be extended before the expiry of the statutory period of limitation and not after the expiry of the limitation as this had created a vested right with the petitioner to not to be assessed beyond the limitation.

The learned counsel further argued the power of condonation with the FBR u/s 74 of the Act can also not be exercised arbitrarily. The FBR has to record reasons for extension in time and that to well before the expiry of the original limitation period. The judge noted that no reason for extension in time of 1055 days after the expiration of original limitation was given, therefore, the FBR must explain the position to have exercised the powers u/s 74 of the Act, sources added
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ZONG becomes fastest growing network in country

2010-07-27T01:51:00.000-07:00

News Paper: Business Reorder

KARACHI (July 25 2010): ZONG has become the fastest growing network of country as it has recorded 500 percent growth in terms of number of cell sites during the last three years. The Company now has 5,612 cell sites out of which a massive 4,500 have been set up since 2007. In April 2008, ZONG joined the Telecom industry in Pakistan as the smallest operator.

It took ZONG two years and the fastest rollout in the history of the industry to setup a network, which its competitors had taken more than a decade to set up. ZONG now covers 10,000 cities, towns and villages across Pakistan. "It has been more than 2 years since the launch of ZONG during which we have made monumental progress," said Salman Wassay, Head of Marketing, ZONG. "In all areas of our operations, we have upped the ante and set new benchmarks for the industry," added Wassay.

ZONG's reach now stretches from the mountain tops of Ishkoman in Gilgit-Baltistan to the rocky plains of Buleda in Balochistan to the midst of mega cities. It has chosen to work with some of the top companies like Ericsson, Huawei, Alcatel Lucent and ZTE to provide top-of-the-line infrastructure for its services.

ZONG has so far invested US $1.66 billion in Pakistan and has plans to further invest $300 million in 2010 which is the largest investment by any telecom operator in the current year. The Company continues to invest heavily in the construction of GSM networks, support systems and transmission facilities, and for the development of new technologies and new businesses. China Mobile - the parent company of ZONG - pursues continuous innovation in the provision of services, business, technology and management and has sustained a leadership position in the telecom industry

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100th Jazz Super SMS Khazana winner announced

2010-07-24T10:11:00.000-07:00

News Paper: Business Recorder

LAHORE (July 22 2010): Mobilink, Pakistan's market leader in cellular services and part of Orascom Telecom Holding, has recently announced the 100th winner of Jazz Super SMS Khazana, an exciting trivia-based contest which gives Jazz customers a chance to win cash prizes on daily, weekly and instant basis.

Since April 2010, Mobilink Jazz, country's premiere pre-paid brand has rewarded more than 71 participants with daily prize of Rs 75,000 each, while 12 Jazz customers have been rewarded with weekly prize of Rs 550,000 each. Moreover, 17 lucky participants have also won instant cash prize of Rs 30,000 each bringing the total number of Jazz Super SMS Khazana winners to 100.

Recently a prize distribution ceremony was held at Mobilink Customer Care Center in Faisalabad, where Sohail Kamil, Senior Manager Customer Care, Mobilink presented a weekly prize cheque of Rs 550,000 to Muhammad Shafiq, the lucky winner from Toba Tek Singh. In the Jazz Super SMS Khazana campaign, each daily-prize is worth Rs 75,000 in cash, while the weekly prize is valued at Rs 550,000 each. There are also 20 cash prizes of Rs 30,000 each for Jazz customers on instant-win basis.

The bumper prize at the end of this campaign is Rs 1 Crore and the lucky Jazz Super SMS Khazana Bumper prize winner will be announced on 3rd August, 2010. Jazz customers can participate in Jazz Super SMS Khazana by simply sending "JK" or any keyword to 5555. List of all lucky winners is regularly updated and is available along with further details about the Jazz Super SMS Khazana on Mobilink website www.mobilinkworld.com.

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PTA arrests accused, confiscates GSM multiplexers

2010-07-23T09:36:00.001-07:00

News Paper: Business Recorder

ISLAMABAD (July 22 2010): Pakistan Telecommunication Authority (PTA) in collaboration with FIA Cyber Crime Wing raided an illegal gateway exchange in Hyatabad, Peshawar, arrested one person while confiscating GSM Multiplexers switches and other accessories. It may be mentioned that during the last one year, PTA has conducted 29 successful raids on grey traffickers throughout Pakistan, which included small and big gateway operators.

During these raids, a number of persons, including foreigners, were arrested along with confiscation of more than forty illegal gateway exchanges, hundreds of SIMs/connections and other accessories. In the campaign against illegal telephony 24,418 mobile SIMs have so far been blocked. The apprehended culprits are being interrogated by FIA and the legal proceedings are under way against them.

It is also noteworthy that PTA under the patronage of its Chairman, Dr Mohammed Yaseen has taken a number of initiatives to deal with the issue. PTA has established highly advanced technical monitoring system to identify such illegal activities throughout the country. After identification of any such illegal activity, PTA not only unearths the exact location of these networks but also launches crack down with the help of FIA against the culprits
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Pakistan may launch new satellite next year

2010-07-21T11:12:00.001-07:00

News Paper: Business Recorder

ISLAMABAD (July 20 2010): Pakistan is planning to replace PAKSAT-1 with a new communication satellite PAKSAT-1R and hopefully it will be launched on August 14, 2011. The satellite will support all conventional and modern Fixed Satellite Service (FSS) applications, will use the geostationary orbit, and acquire a constant height of 36,000km above the surface of earth crust.

Talking to APP Manager PAKSAT (SUPARCO) Waseem-ul Hassan said that the satellite will have a total of up to 30 transponders and life time of the satellite would be 15 years. Giving some more details about the satellite, he said it would carry the communication pay-load that consists of internet broadband, TV channels distributions, tele-medicine and tele-education. He mentioned that work on the project is started with full bloom, and the measurements are taken to make it perfect and a long-term loans are also made for this project. Manager PAKSAT said, as per the technology achievements in the region, Pakistan has to make fast and competitive progress in the technology of space sciences. Some more satellites would also be launched in the next years by Pakistan, he added.

"It is a right time for Pakistan to make such progresses while the eyes of world are on us". In future such contributions, that make the Pakistan in every field a proud one, will be made and always be made for not only to assist Pakistani nation but to give a big helping hand to whole humanity, he maintained.

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Pakistan may launch new satellite next yea

2010-07-20T11:48:00.000-07:00

News Paper: Business Recorder

Landline connection: PTCL lowers installation charges

2010-07-16T08:12:00.003-07:00

ISLAMABAD (July 16 2010): Pakistan Telecommunication Company Ltd (PTCL) has lowered its installation charges for the new PSTN telephone connections to Rs 500 for all the NTC commercial and residential customers. The customers who desire to have PTCL landline connection would now have to pay only Rs 500 compare to previous charges of Rs 750 as the connection charges.

SEVP Commercial Naveed Saeed said the step was taken to facilitate our customers to the maximum. And these charges would be applicable on both commercial and residential customers. Aasif Inam EVP Consumer Services said the importance of landline even in this era can not be undermined and PTCL being the largest landline operator has offered these new charges to assist our wide landline consumer base.
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Mobilink concludes awareness drive

2010-07-16T08:12:00.001-07:00

ISLAMABAD (July 16 2010): Mobilink will conclude its awareness drive on Friday (today) to support the National Polio Campaign (NPC) and the Polio Control Cell. As an integral member and advocate in the fight against polio, Mobilink has conducted 3 rounds of awareness in the past reaching out to millions of Pakistanis.

Earlier this year Mobilink also set up a short code, 7654, to facilitate the Polio Control Cell in meeting their goals. The Polio Control Cell, a special initiative by the Polio Eradication Fraternity, aims at reaching out to those children who have missed their vaccination in the NPC. Activated immediately after the recently conducted national round, the Cell will also conclude on July 16.

Mobilink customers can SMS Polio to the short code, 7654 which prompts the Cell to send polio teams to vaccinate the missed children. More than 13,000 parents have already contacted the PCC through the short code. Omar Manzur, Director Corporate Social Responsibility and PR, Mobilink said, "We have pledged our support to eradicate polio from the country and are pleased to see that the anti-polio fraternity is growing. We would like other companies to come forward and support the initiative and help achieve the goal of a polio free Pakistan." Besides being the final frontier in the quest for a polio free world, the anti-polio drive also emphasises the critical role of child-health in the development of a healthy society.
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PTA organises Telecom Consumer Forum

2010-07-13T11:07:00.001-07:00

QUETTA (July 09 2010): Pakistan Telecommunication Authority (PTA) organised Telecom Consumer Forum with a theme "Together for Consumer Rights", said a press release issued here on Thursday. State Minister for Industries and Production, Dr Ayatullah Durrani was the chief guest on this occasion while Chairman PTA, Dr Mohammed Yaseen presided over the Forum.

Consumer Representative, Suraiya Allahdin, representatives from IT & telecom industry, telecom consumer groups, renowned social workers and academia also attended the event. Dr Ayatullah Durrani said that this forum provides us an excellent opportunity to review the telecom scenario in Balochistan for achieving desired targets in terms of service expansion. He said that the telecom sector has witnessed a spectacular growth in the recent past.

He said that Balochistan is gaining a lot of ground through implementation of last mile solution and increased network coverage. Major share in this increase of network coverage has been that of the mobile sector while Wireless Local Loop (WLL) services have also fared well recently in the province, he added. The Minister said that it would also have a positive spill over effect on the overall economy of the province creating increased economic activity in Balochistan.

Dr Ayatullah further said that number of consumer-oriented steps have been taken by the operators under the guidance of PTA which not only facilitate the telecom consumers but also ensure their protection from poor quality of services. He said that the verification of user antecedents and blocking of unverified SIMs, successful introduction of new SIM Activation System and smooth implementation of "SIM information System-668" are some of the significant steps taken by PTA on SIM issue which would go a long way towards safe and legal use of mobile services.

Chairman PTA, Dr Mohammed Yaseen said that the statistics of recent telecom growth in Balochistan are evident of the satisfaction level of telecom consumers of this area with the quality of telecom services provided to them. He said that in year 2002 cellular teledensity in Balochistan was just 0.17 percent which has grew manifold after the completion of numerous development projects making this figure much healthier in March-2010 which is 34.3 percent.

CEO Universal Service Fund (USF), Parvez Iftikhar said that the fund has started projects worth Rs 5.87 billion in Balochistan, which would help in provisioning of telecom services to far flung areas of Balochistan. This would bring economic betterment in the area, he added. The consumer representative, Suraiya Allahdin appreciated the role of PTA in focusing on consumer issues. Presentations were also made by PTCL, mobile and WLL operators on this occasion.
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Unlimited GPRS package by Warid

2010-07-13T11:06:00.001-07:00

KARACHI (July 13 2010): Warid Telecom (Pvt) Ltd, the innovation leader and country's most trusted cellular service now brings an amazing unlimited GPRS package 'Surf @ Twilight'. It is the best deal in town that includes unlimited GPRS from 1am to 9am for just Rs 20+Tax. Warid prepaid users can access unlimited data over GPRS with the validity of one day per subscription. Users can subscribe by sending "Data" to 3283.

Leading the market with customised Products and Services Warid manages the product portfolio of over 40 Value Added Services based on IVR, SMS, MMS and GPRS platforms. Warid brought some of the most innovative value-added services, which were introduced in Pakistan for the very first time. Warid is always a step ahead to best serve the needs of its valued customers by providing them with an opportunity to experience the best in mobile technology.
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