ISLAMABAD:
The Pakistan Telecommunication Authority (PTA) has resumed registration of virtual private network (VPN) service providers, allowing companies to purchase class licenses for data services at rates ranging from Rs 100,000 to Rs 300,000.
According to PTA officials, the licensing initiative aims to put VPN providers under regulatory oversight. Upon implementation, providers will be required to operate locally registered data centers and comply with Pakistan’s data protection laws.
According to sources, the class licensing framework will allow the PTA to monitor and regulate VPN services effectively.
Crucially, the PTA will gain access to user data and browsing history under licensing conditions, a move designed to bolster cybersecurity measures. The measure will also allow the authority to detect and track cyber attacks more effectively.
The initiative came in light of consultations with stakeholders, including the Pakistan Software Companies Association (P@SHA), which formally requested the registration process to streamline operations.
The sources added that VPN providers must comply with local data protection regulations, ensuring compliance with national laws. Additionally, companies offering these services will need to establish local data centers to facilitate tracking and regulatory requirements.
Earlier, the PTA had announced the resumption of granting class licenses for data services to providers in Pakistan. “VPN service providers must obtain a Data Class License (Data Services) to provide VPN and related services,” the statement reads.
Previously, the telecoms regulator granted licenses to companies offering internet, mobile services and vehicle trackers. However, it has now introduced a new category for VPNs under licensed services.
The scheme aims to have local companies, operating under the laws, licensing terms and regulatory provisions of Pakistan, provide proxy services to users. The change allows the regulator to exert greater control over these companies compared to the current scenario, where the majority of VPN providers are foreign entities.
Documents available on the PTA website reveal that the licensing terms for existing service providers would also be extended to any company offering VPN services. A provision specifies that companies must “[p]Promptly provide all information, when and as desired by the Authority. [PTA]which helps you quantify the proliferation of technologies or services, whether technical, regulatory or financial in nature.”
