A government audit report has uncovered that China Mobile Pakistan (Zong) continued to illegally use spectrum worth Rs53.5 billion after its 2G (GSM) license expired in October 2019.
According to the report, the Frequency Allocation Board (FAB) had originally granted Zong temporary additional spectrum in 2007 to address cross-border interference from Indian CDMA networks. This allocation was repeatedly extended, most recently until October 2019, when the 2G license expired.
However, monitoring reports revealed that Zong continued to operate on the spectrum even after expiration, and in violation of license conditions, also used it for LTE (4G) services. The Pakistan Telecommunication Authority (PTA) issued an enforcement order in December 2020, directing Zong to vacate the spectrum and pay charges at the rate of $29.5 million per MHz as per the 2019 policy.
The audit highlighted that despite Islamabad High Court dismissing Zong’s petitions in August 2024, FAB did not cancel the spectrum, nor did PTA recover outstanding dues. The case is now pending before the Supreme Court of Pakistan, where Zong argues that spectrum use was necessary to counter cross-border interference and maintain uninterrupted services.
Auditors noted that the issue has been repeatedly flagged in reports since 2015, warning that failure to recover dues continues to cause heavy financial losses to the national exchequer.
