Nayatel has prevailed in its lawsuit against the Army Heritage Foundation (AHF) over Right of Way (ROW) costs,.In support of Nayatel, the Cabinet Division has issued an order requiring the standardization and uniform application of ROW tariffs.
The payments that the AHF demanded for Nayatel’s infrastructure deployment in Ayub National Park were at the heart of the disagreement. 2018 saw the signing of a deal between Nayatel and AHF, whereby Nayatel gave free or heavily discounted internet connections to AHF in exchange for a monthly payment of Rs. 25,000.
However, AHF wanted a tenfold increase in the ROW cost to Rs. 250,000 per month, along with 11 more free connections and free future connections, after the deal expired on February 28, 2021. AHF wanted a tenfold increase in the ROW cost to Rs. 250,000 per month, along with 11 more free connections and free future connections, after the deal expired on February 28, 2021.
AHF also asked for the installation of free CCTV cameras and the laying of optical fiber links.
When AHF threatened to destroy the network in response to these demands, Nayatel went to the Rawalpindi Bench of the Lahore High Court. The court ordered AHF to refrain from using any kind of coercion. Interestingly, Nayatel kept paying the ROW charge through February 2024, even though it was already more than the amounts authorized for cantonment boards.
Notably, Nayatel has given AHF payment for the ROW cost through February 2024. In actuality, the fee paid exceeds the federal government’s authorized ROW rates for cantonment boards.The Cabinet Secretary pointed out that the Telecom Act and the ROW Policy Directive, which control telecom activities in Pakistan, must be followed and that AHF is not legally permitted to impose fees above fair administrative costs. The demand of Rs. 250,000 per month made by
AHF was considered excessive and unwarranted.The Cabinet Division order concluded that the ROW charge across Ayub National Park should be the same as the Chaklala Cantonment Board area, citing an earlier announcement dated December 22, 2021. The order further said that this uniformity guarantees the equitable and uniform application of ROW charges.
The decision will undoubtedly aid in the removal of aggressive companies’ unreasonable charge structures that attempt to impede infrastructure development and has established a precedent for future ROW-related conflicts.
