Supernet Limited (PSX: GEMSPNL) has been granted Fixed Local Loop (FLL) licenses by the Pakistan Telecommunication Authority (PTA) for a period of 20 years, effective from October 22, 2024. This significant development was disclosed by the company in a filing to the Pakistan Stock Exchange (PSX) today.
The FLL licenses, which cover all 14 Telecom Regions across Pakistan, mark a major upgrade for Supernet from its previously held Class Value Added Services (CVAS) license. The CVAS license, originally issued on October 23, 2009, is set to expire on October 22, 2024, and will now be replaced by the more comprehensive FLL license.
Under the terms of the new FLL licenses, Supernet will gain additional operational rights, allowing the company to deploy its own telecommunications infrastructure. This is expected to provide the company with the ability to offer a broader range of services to its customers, beyond what was possible under the CVAS license.
The ability to build and control its own infrastructure opens the door for Supernet to expand its service offerings and improve customer experience. As a result, the company is poised to see an increase in revenue streams, with the potential for higher margins due to the enhanced control and efficiency associated with operating its own infrastructure.
This move is expected to positively impact Supernet’s long-term growth and profitability. By upgrading its licenses and securing the ability to offer more services across Pakistan, Supernet is well-positioned to capitalize on the growing demand for telecommunications and internet services in the country. The company’s expanded reach and enhanced service capabilities could significantly bolster its financial performance in the coming years.
With these new FLL licenses, Supernet is taking a strategic step toward strengthening its market position in Pakistan’s highly competitive telecom sector.
