PTA Proposes Rs. 100,000 Licence Fee for IoT Companies in Pakistan

The Pakistan Telecommunication Authority (PTA) has proposed a new licensing framework for Internet of Things (IoT) services, introducing a five-year commercial licence with an initial fee of Rs. 100,000 for companies providing connectivity to third parties through designated network technologies.

The proposed regulations, titled the Internet of Things and Low Power Wide Area Networks (IoT-LPWAN) Licensing Regulations 2026, aim to establish a formal regulatory structure for businesses operating connected-device networks in Pakistan.

The draft framework introduces different licensing and registration categories for commercial IoT operators, private networks, technology platforms and research activities. It also outlines operational requirements covering network deployment, gateway registration, traffic routing and periodic reporting.

The proposal is particularly relevant to companies working in smart agriculture, industrial automation, logistics, connected buildings, healthcare and other sectors where devices communicate through wireless networks.

However, the proposed regulations are still at the consultation stage. The fee structure and other requirements should not be treated as final or already enforced.

PTA’s Proposed Rs. 100,000 Commercial Licence

Under the draft regulations, companies providing commercial IoT connectivity services to third parties through designated Low Power Wide Area Network (LPWAN) frequency bands would need to obtain a five-year licence.

The proposed financial requirements include:

The processing fee would be non-refundable. The initial licence fee would apply to the commercial operator category covered by the proposed framework.

The new proposal is intended to establish a clearer licensing structure for companies deploying IoT connectivity infrastructure and offering related services to customers.

It is important to understand that this is not a general Rs. 100,000 registration charge for every business using the internet. The proposal specifically concerns organisations operating within the defined IoT and LPWAN regulatory categories.

Different Registration Fees for Private IoT Networks and Technology Platforms

The draft regulations do not apply the same fee to every type of IoT activity. Instead, PTA has proposed separate categories depending on how an organisation uses connected-device technology.

1. Private IoT Networks

Companies establishing private IoT networks within their own premises, such as factories, farms, industrial plants and campuses, would be required to obtain registration.

The proposed fees are:

These private networks would be intended for internal use. They would not be permitted to provide commercial connectivity services to outside parties under this category.

For example, a manufacturing facility using connected sensors to monitor production equipment could fall within the private-network category, subject to the final regulations and applicable conditions.

2. IoT Platform and Application Providers

The draft also introduces a registration category for companies developing software platforms and applications that use data generated by connected devices.

These businesses would be subject to the following proposed charges:

This category is relevant to technology companies developing software for smart buildings, industrial monitoring, agriculture, fleet management and other IoT applications.

3. Research and Development Activities

PTA has also proposed a separate regulatory sandbox category for organisations conducting IoT research, development, testing and trials.

The proposed charges are considerably lower:

This category could provide a route for startups, researchers and technology developers to test new IoT concepts under a defined regulatory arrangement.

Which Companies Could Be Affected?

The proposed regulations cover several types of organisations involved in connected-device services.

Potentially affected businesses include:

• Companies providing commercial IoT connectivity to third parties.
• Operators deploying LPWAN-based networks.
• Businesses establishing private IoT networks within their premises.
• Companies developing IoT platforms and applications.
• Organisations conducting research and testing under the proposed sandbox category.

The draft also identifies a number of sectors where IoT technology could be used.

These include smart cities, agriculture, livestock monitoring, electricity and water utilities, industrial automation, logistics, healthcare, education, transportation infrastructure, environmental monitoring and public safety.

The requirements applicable to a particular organisation would depend on its activities and the regulatory category into which it falls.

PTA Proposes New Operational Requirements for IoT Operators

The proposed framework goes beyond licence fees. It also introduces several operational and reporting obligations for companies operating IoT networks.

One-Year Deadline to Start Commercial Operations

Commercial licensees would generally be required to begin operations within one year after their licences become effective.

They would also need to obtain a commencement certificate from PTA.

Companies failing to meet this requirement could face licence cancellation. However, the authority may grant a one-time extension of up to six months if the operator submits a justified request before the original deadline expires.

This requirement means that obtaining a licence would not be sufficient on its own. Operators would also need to establish their networks and meet the prescribed commencement conditions.

Mandatory Registration of IoT Gateways

The draft regulations require operators to register their network gateways through PTA’s designated online system.

Gateways are important components of many IoT networks because they connect devices to wider communication systems and transfer collected data.

The proposed registration requirement would allow the regulator to maintain information about network infrastructure and monitor deployments.

Quarterly Reporting Requirements

Licensed operators would also be required to submit quarterly reports covering:

• Number of active IoT connections.
• Number of operational gateways.
• Gateway deployment information.
• District-level details for commercial operators.

These reports would provide PTA with information about network expansion and the scale of connected-device services operating under the framework.

Backend Traffic Must Use Licensed Access Providers

Another significant condition concerns the routing of backend network traffic.

Under the proposal, operators would be required to route their backend traffic, including satellite backhaul, through a PTA-licensed Local Access Provider.

Connecting through an unlicensed operator could result in cancellation of the relevant licence or registration under the draft conditions.

This requirement makes the selection of a compliant connectivity and backhaul provider an important consideration for companies planning IoT deployments.

Which Frequency Bands Are Included?

The proposed framework identifies two frequency ranges for relevant LPWAN operations:

The draft also proposes a maximum transmission power limit of one watt.

Operations would take place on a secondary, non-interference and non-protection basis. In practical terms, operators would need to comply with the applicable frequency-sharing conditions and could not assume protection from interference caused by authorised primary users.

The Frequency Allocation Board could also consider exclusive frequency assignments on a case-by-case basis.

These technical conditions are important because IoT networks often operate through large numbers of low-power connected devices spread across farms, factories, buildings and other locations.

Are Jazz, Zong and Other Cellular Operators Required to Obtain a New Licence?

The proposed framework includes an exemption for cellular operators offering IoT services through their existing spectrum licences.

According to the draft provisions reported in the media, operators such as Jazz, Zong and the merged Ufone-Telenor operation would be able to provide IoT services under their existing licensing arrangements without obtaining additional paperwork under this particular framework.

Certain devices operating in shared Short Range Device and Ultra-Wideband frequency bands would also remain exempt from the proposed licensing requirements.

Importers of IoT devices would not need this operator licence simply because they import equipment. However, applicable device type-approval requirements would continue to apply.

These distinctions matter because the proposed framework is aimed at specific network operators and service categories rather than every company involved in the wider IoT ecosystem.

What Happens to Existing IoT Licensees?

The draft also addresses organisations that have already received IoT licences under the earlier regulatory framework.

Existing licensees would generally be allowed to continue operating for the remaining validity of their licences, subject to compliance with the updated requirements.

The proposed transition arrangements include a 90-day compliance period for certain existing licensees to meet the applicable gateway registration and commencement-certificate requirements.

The exact obligations would depend on the final approved regulations and the category of the existing licence.

How Could the New Rules Affect Startups and Businesses?

The proposed framework could influence the cost and complexity of entering Pakistan’s IoT market.

For commercial operators, the proposed Rs. 100,000 initial licence fee is lower than the Rs. 300,000 fee associated with the earlier district-level licensing framework discussed in industry coverage.

The new proposal also introduces lower-cost registration categories for private networks, technology platforms and research activities.

This separation could be useful for businesses that do not intend to operate commercial connectivity networks but still want to deploy connected devices or develop IoT-related software.

However, licensing fees are only one part of the overall cost of establishing an IoT business. Companies may also need to invest in gateways, sensors, network infrastructure, software, technical staff, connectivity arrangements and regulatory compliance.

Requirements relating to traffic routing, gateway registration and quarterly reporting could create additional administrative and operational responsibilities.

For small businesses and startups, the practical impact will therefore depend on the final rules and how PTA implements them.

How Is This Different From a Regular Internet Service Provider Licence?

The distinction between IoT licensing and conventional internet service licensing is particularly important.

A company providing ordinary broadband internet to households or offices operates under the relevant internet-service licensing framework.

The proposed IoT-LPWAN regulations address a different category of activity: networks and services designed to connect devices, sensors and machines.

For example:

The applicable regulatory category would depend on the actual service being provided and the final rules.

When Will the PTA Regulations Come Into Effect?

The IoT-LPWAN Licensing Regulations 2026 are currently a proposal circulated for consultation, rather than a final set of enforceable regulations.

This means the proposed fees, technical requirements, exemptions and compliance deadlines could change following feedback from relevant stakeholders and the regulator’s review.

Companies planning to enter the IoT market should therefore avoid treating the proposed charges as final until PTA publishes the approved regulations and confirms their effective date.

Businesses already operating in the sector should monitor official PTA announcements to understand how the transition arrangements may affect their existing licences.

Final Word

PTA’s proposed IoT-LPWAN Licensing Regulations 2026 could introduce a more structured regulatory environment for connected-device services in Pakistan.

The proposed five-year commercial licence carries an initial fee of Rs. 100,000, while private IoT networks and technology platforms would face separate registration charges. A lower-cost category has also been proposed for research and testing activities.

The framework includes operational conditions covering network commencement, gateway registration, quarterly reporting, frequency use and traffic routing through licensed access providers.

For startups, manufacturers, technology developers and commercial network operators, the final regulations will determine the actual cost and compliance requirements of entering this growing market.