Law:

Section:

(a) Pakistan Telecommunication (Reorganization) Act (XVII of 1996)--- ----Ss. 22 & 8---Mobile Cellular Policy (of the Federal Government), 2004, paras. 4.4 & 5.4---Annual Spectrum Administrative Fee (ASAF), demand of---Legality---Change in terms of an existing licence---Scope---Policy directives issued by Federal Government under S.8 of the Pakistan Telecommunication (Re-organization) Act, 1996, status of---Appellant-company, which provided mobile cellular services, was granted a license by PTA in August, 1998---Amongst its various terms and conditions, the license also specified the charges, fees etc. which the appellant-company was obliged to pay to PTA---On 27-10-2008 PTA sent a show cause notice to appellant-company demanding payment of an Annual Spectrum Administrative Fee (ASAF)---PTA claimed that said fee was imposed on appellant-company by virtue of paras 4.4 & 5.4 of the Mobile Cellular Policy of the Federal Government, 2004 read with clause 2.4 of the license issued to the appellant-company---Appellant-company contended that it was not obliged to pay the ASAF during the existence of its license---Validity---Paragraph 4.4 of the Mobile Cellular Policy of the Federal Government, 2004 provided a new charge by way of ASAF which was in addition to the charges which were payable by (mobile) service providers under their existing licenses---ASAF envisioned in para 4.4 of the said Policy was the reasonable operational cost for "managing licensing and policing" and NOT for the "use" of the frequency spectrum---Licensee had been 'using' the spectrum since 1998, which was wholly distinct and different from the responsibility of PTA for 'managing', 'licensing' and 'policing' of the spectrum---Use of the frequency spectrum on the one hand and managing, licensing and policing of such spectrum on the other had to be distinguished---Charges for use of the spectrum were or could be market driven---Licenses for use of frequency spectrum could be auctioned where prospective bidders could place a market value on the permission for use of the frequency spectrum---ASAF under para.4.4 of the Mobile Cellular Policy of the Federal Government, 2004, however, was…

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