Instaphone
Encyclopedia
Instaphone was a telecommunications company in Pakistan
and the pioneer of cellular industry in Pakistan. The company was initially owned by Millicom International and was acquired later by the Arfeen Group.
In January 2008, the Pakistan Telecommunication Authority
(PTA) terminated the license of Instaphone due to the company’s failure to pay outstanding dues.
(PTA) terminated the license of Instaphone due to the company’s failure to pay outstanding dues for the license renewal fee they agreed to in April 2005 ($291MM). Pakcom, the company that runs Instaphone, failed to meet the payment schedule of $291 million for getting the operating license renewed for next 15 years from 2005.
in an appeal. During pendency of the appeal, it also filed a writ petition challenging the Mobile Cellular Policy issued by the Federal Government
in 2004 under which new licenses for cellular mobile services were awarded.
On April 14, 2009, the Islamabad High Court
(IHC) dismissed the appeal filed by Instaphone. Both the appeal and the writ petition were dismissed by the court and PTA’s determination was upheld. However, the court extended the date for making the outstanding payment by Instaphone to 6 May 2009.
service in the 1980s to the final GSM network. Due to a lack of telephone number porting
laws in Pakistan, Mobilink
kept a large TDMA
network throughout the 1990s up until the middle of this decade. Due to this rare TDMA presence in the middle of Asia which was majority GSM, Pakistan was flooded with unlocked
American and Canadian TDMA cellphones for sale to many of the Instaphone customers who were mostly business users at the time and could not afford losing their established telephone numbers.
en-route to Pakistan for sale, usually bonded by third parties that had satellite offices in the city. The majority of these North American phones were sold on the grey market
supposedly laundering
money for the Muslim Indian mafia. Hundreds of Pakistani immigrants across North America tried to take part in this opportunity and many lost their life savings. The average shipment was approximately $30,000 USD of cellphones and fraudulent letters of credit were given. Most were never paid for the shipment. Within the next decade, Instaphone was declared bankrupt.
Pakistan
Pakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
and the pioneer of cellular industry in Pakistan. The company was initially owned by Millicom International and was acquired later by the Arfeen Group.
In January 2008, the Pakistan Telecommunication Authority
Pakistan Telecommunication Authority
Pakistan Telecommunication Authority is Pakistani government agency responsible for the establishment, operation and maintenance of telecommunications in Pakistan...
(PTA) terminated the license of Instaphone due to the company’s failure to pay outstanding dues.
Market share
Before the company's license was canceled, It was ranked at the bottom in terms of market share.| 2003-04 | 2004-05 | 2005-06 | 2006-07 |
| 3,196 | 2,693 | 1,539 | 472 |
Cancellation of license
On January 4, 2008, Pakistan Telecommunication AuthorityPakistan Telecommunication Authority
Pakistan Telecommunication Authority is Pakistani government agency responsible for the establishment, operation and maintenance of telecommunications in Pakistan...
(PTA) terminated the license of Instaphone due to the company’s failure to pay outstanding dues for the license renewal fee they agreed to in April 2005 ($291MM). Pakcom, the company that runs Instaphone, failed to meet the payment schedule of $291 million for getting the operating license renewed for next 15 years from 2005.
Appeal against PTA
The Instaphone challenged the PTA's decision before the Islamabad High CourtIslamabad High Court
-History:Islamabad High Court located in Islamabad the capital of Pakistan was established under a presidential order on December 14, 2007. However its creation was delayed because of the stay order issued by the Lahore High Court after its establishment was challenged there. But Supreme Court of...
in an appeal. During pendency of the appeal, it also filed a writ petition challenging the Mobile Cellular Policy issued by the Federal Government
Government of Pakistan
The Government of Pakistan is a federal parliamentary system, with an indirectly-elected President as the Head of State and Commander in Chief of the Pakistani Armed Forces, and an indirectly-elected Prime Minister as the Head of Government. The President’s appointment and term are...
in 2004 under which new licenses for cellular mobile services were awarded.
On April 14, 2009, the Islamabad High Court
Islamabad High Court
-History:Islamabad High Court located in Islamabad the capital of Pakistan was established under a presidential order on December 14, 2007. However its creation was delayed because of the stay order issued by the Lahore High Court after its establishment was challenged there. But Supreme Court of...
(IHC) dismissed the appeal filed by Instaphone. Both the appeal and the writ petition were dismissed by the court and PTA’s determination was upheld. However, the court extended the date for making the outstanding payment by Instaphone to 6 May 2009.
Technology migration strategy
Instaphone had a unique migration strategy between AnalogAnalog signal
An analog or analogue signal is any continuous signal for which the time varying feature of the signal is a representation of some other time varying quantity, i.e., analogous to another time varying signal. It differs from a digital signal in terms of small fluctuations in the signal which are...
service in the 1980s to the final GSM network. Due to a lack of telephone number porting
Local number portability
Local number portability for fixed lines, and full mobile number portability for mobile phone lines, refers to the ability to transfer either an existing fixed-line or mobile telephone number assigned by a local exchange carrier and reassign it to another carrier...
laws in Pakistan, Mobilink
Mobilink
Pakistan Mobile Communications Limited, better known as Mobilink GSM, is a telecommunication service provider in Pakistan. The company is Pakistan's leading cellular operator with a subscriber base of 31.5m and market share of 31% in October 2010....
kept a large TDMA
Digital AMPS
IS-54 and IS-136 are second-generation mobile phone systems, known as Digital AMPS . It was once prevalent throughout the Americas, particularly in the United States and Canada. D-AMPS is considered end-of-life, and existing networks have mostly been replaced by GSM/GPRS or CDMA2000...
network throughout the 1990s up until the middle of this decade. Due to this rare TDMA presence in the middle of Asia which was majority GSM, Pakistan was flooded with unlocked
SIM lock
A SIM lock, simlock, network lock or subsidy lock is a capability built into GSM phones by mobile phone manufacturers. Network providers use this capability to restrict the use of these phones to specific countries and network providers...
American and Canadian TDMA cellphones for sale to many of the Instaphone customers who were mostly business users at the time and could not afford losing their established telephone numbers.
TDMA grey market phones
Many of the North American standard TDMA phones showed up on the piers in DubaiDubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...
en-route to Pakistan for sale, usually bonded by third parties that had satellite offices in the city. The majority of these North American phones were sold on the grey market
Grey market
A grey market or gray market also known as parallel market is the trade of a commodity through distribution channels which, while legal, are unofficial, unauthorized, or unintended by the original manufacturer...
supposedly laundering
Money laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
money for the Muslim Indian mafia. Hundreds of Pakistani immigrants across North America tried to take part in this opportunity and many lost their life savings. The average shipment was approximately $30,000 USD of cellphones and fraudulent letters of credit were given. Most were never paid for the shipment. Within the next decade, Instaphone was declared bankrupt.