ISLAMABAD: The Pakistan Telecommunication Authority (PTA) has introduced a new approach to “register” Virtual Private Networks (VPNs) after its previous efforts to ensure compliance failed to deliver the desired results.
As per the newspaper report, the authority plans to create a new licensing category, allowing companies to apply for permits to offer VPN services.
This initiative aims to address the issue of unregistered VPNs by deeming all proxies not provided by licensed companies as unregistered and subject to blocking.
With licensed service providers, authorities would gain the ability to monitor VPN traffic, addressing concerns about the anonymity offered by proxy networks.
In a recent press release, the PTA announced the resumption of granting Class Licences for Data services to providers in Pakistan.
“VPN service providers must obtain a Class Licence for Data (Data Services) to deliver VPN and related services,” the statement noted.
The telecom regulator already issues licences for companies offering internet, cellular services, and vehicle tracking systems. Now, VPN services have been added to the list of licensed categories.
Under the plan, local companies operating under Pakistan’s laws, licence terms, and regulatory frameworks will provide proxy services to users.
This shift would enable the regulator to exert greater control over local providers compared to the current reliance on foreign VPN companies.
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Need for a Revised Framework;
The Pakistan Software Houses Association (P@SHA), a body representing IT and IT-enabled service providers, first proposed the idea of local VPN providers.
“We’ve suggested to the PTA and the IT ministry that to support the approximately 2.5 million freelancers in Pakistan, including many women supplementing family incomes through small IT export projects, an international model is needed,” said P@SHA chairman Sajjad Syed.
Mr. Sajjad noted that licensed VPN providers would pay a fee to the PTA and sell VPN services to users, similar to how ISPs and cellular providers operate.
Users dissatisfied with one provider could switch to another, he explained.
“Additionally, this framework allows the government to monitor local VPN usage, addressing related security concerns,” added Mr. Sajjad.
The licensing fee is set at Rs300,000 for nationwide VPN services and Rs100,000 for provincial services, with licences valid for 15 years and renewable for an equal duration.
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Surveillance Guidelines;
As per PTA documents, the terms applicable to existing service providers will also extend to VPN providers.
One provision requires providers to “[p]romptly provide all information requested by the Authority [PTA], aiding it in evaluating technological, regulatory, or financial aspects of the service.”
The terms also mandate compliance with the Pakistan Telecommunication (Re-organization) Act 1996 and other applicable rules, with violations leading to legal action.
On national security grounds, licensees must supply “Lawful Interception” (LI) equipment at their own cost to authorized security organizations.
A similar surveillance system is already in place for telecom providers, as revealed in Islamabad High Court proceedings earlier this year. It was disclosed that telecom companies’ systems allow surveillance of up to 2% of their user base through a Lawful Intercept Management System (LIMS), enabling the retrieval of data, interception of voice calls, and reading of SMS messages.
If applied to VPN providers, these provisions could undermine the very anonymity that proxy networks are meant to provide.
Technical experts have criticized the new scheme, labeling it a “futile exercise” that grants excessive oversight powers to authorities, potentially defeating the purpose of VPNs.
