PTA used to charge 4% of the gross revenue of ISPs as royalty. Keeping in view the low turnover and market of the Internet, this amount was too high. ISPAK made numerous presentations to PTA and Ministry of Science & Technology to reduce this royalty but in vain. Finally ISPAK moved a writ petition in the Rawalpindi Bench of Lahore High Court challenging the legal status of royalty charged by PTA. This was the first ever litigation against the national telecom regulator by the industry stakeholders. PTA, upon written instructions from Deputy Attorney General of Pakistan went into negotiations with ISPAK and made an out of court settlement according to which, royalty was reduced to 0.66% of the gross revenue for ISPs. This came another milestone in the development of Internet in Pakistan.
