KARACHI, Aug 18: Stakeholders in the telecommunications sector, on Monday, accused the Pakistan Telecommunication Authority (PTA) of trying to protect the Pakistan Telecommunication Company Ltd (PTCL) in the deregulation policy.

At a symposium held at the Islamic Chamber of Commerce and Industry, the chief executive of the AKD Securities, Ali Ansari, expressed reservations about the deregulation policy.

“The third clause of the deregulation policy, which enumerates its objectives, says that the policy while recognizing the challenge to the incumbent (PTCL) is designed to minimize exposure to the government’s revenue base in the short term. This is unacceptable, because the telecommunications regulator is supposed to provide a level-playing field to all the players of the telecommunications sector,” he said.

He, however, admitted that as far as the deregulation policy was concerned the PTA had come a long way. “Previously the debate used to focus on ensuring minimum competition to the PTCL. And the policy finally announced by the PTA is unrestricted and open,” he added.

He said that experts maintained that the PTCL would lose 40 per cent of its revenue after the deregulation of the telecommunications sector.

Mr Ansari said that if the PTA was looking forward to having a lot of investment in the telecommunications sector it should come out with an upfront statement declaring that the PTCL would not be protected.

The PTA chairman, Maj Gen (retd) Shehzada Alam Malik, said that the telecoms regulator had worked at the deregulation policy for a year before announcing it.

“We studied several models. Deregulation of the telecommunications sector has taken place in 70 to 80 countries. Pakistan is a late comer in this field,” he maintained.

He said that one of the major objectives of the deregulation policy was the spread and growth of the telecommunications sector. “We are looking for serious investors. The PTA is committed to providing the enabling environment to all the players. Like the PTA, the stakeholders in the telecommunications sectors are also responsible for making the deregulation policy a success,” he remarked.

The PTA chairman added that a lot depended upon the PTCL, as its whole-hearted cooperation would be required to deregulate the telecommunications sector.

The ICC chairman, Tariq M. Rangoonwala, said the capital investment required for the deregulation of the telecommunications sector would need a high level of transparency. “It is essential that the PTA gives investment guarantees. These guarantees can come only by the implementation of intellectual property rights,” he said.

The officials of the PTA and the PTCL answered many questions raised by the audience.

When a representative of an Internet Service Provider asked why investors were being made to submit forms like a loan application even after investing a lot of money, the PTA chairman said, “I agree with you. If your business succeeds, it is good. If it does not succeed, it is not my problem.”

Answering another question, Mr Malik said the deregulation policy had been announced by the government. “It does not mean that the PTA agrees with every word of it. Nevertheless, the policy is here. If you have suggestions, inform us and we will try to incorporate your suggestions in the policy,” he added.

A few stakeholders said that after the deregulation of the telecommunications sector, the monopoly of the PTCL would be replaced by that of a private company.

Some members of a commercial body wondered why they had not been consulted by the telecoms regulator while the deregulation policy was being prepared. They said that their views should have been elicited earlier.

Responding to these reservations, the PTA chairman said that while a lot of people had been consulted while the deregulation policy was being prepared, their views had not necessarily found their way into the policy.