(MENAFN- Muscat Daily) Omantel said on Monday that news regarding its Pakistani subsidiary WorldCall Telecom Ltd (WTL) is inaccurate and the company continues providing telecom services as usual.
There were recent media reports in Pakistan that the Pakistan Telecommunications Authority (PTA) has suspended the licence and services of WTL on its failure to pay around 69.11mn Pakistani rupees (RO258900) in annual radio frequency spectrum fee (ARFF) for 2011 and 2012.
'To clarify any misunderstanding the PTA issued a determination order to temporarily suspend the licence granted to the company to provide WLL (wireless local loop) services due to an old dispute over spectrum fees. The company appealed against the determination and the high court in Lahore issued a stay order in favour of the company' Omantel said in its filing to the Muscat Securities Market.
Omantel added that the WTL management is working with PTA to resolve the case. 'It is worth mentioning that the WLL service is one of many services that the company provides and therefore we reassure our valued shareholders and investors that there is no impact on WTL by this order.'
Omantel has a 56.8 per cent shareholding in WTL.
In a notification last week the PTA said that the licence (dated November 12 2004) awarded to WTL for provision of WLL services in 14 regions is hereby suspended immediately for a period of one month or till payment of outstanding due of 34.55mn rupees for 2011 and 34.55mn rupees for 2012 along with late payment fee of two per cent per month.
WTL's revenue dropped 28.3 per cent to RO5mn in the first half of 2014 over the corresponding period of last year mainly on declines in the WLL segment. Net loss widened to RO4.1mn from RO2.4mn Omantel's financial report showed.
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