ISLAMABAD: The telecom sector regulator is planning to contain the dominating position of mobile phone operators by restricting freewill tariff increase and utilising their profits for other telecom services.
The Pakistan Telecommunication Authority (PTA) has sought feedback on the draft ‘Tariff for Telecommunication Services Regulations, 2022’ which will bound all telecom operators to provide access to ‘Emergency Services’ to their consumers without any charge. The operators will also be required to offer resources for a limited period of time in any event of national disaster or calamity as per directions of the PTA.
The draft – which has been placed at the PTA website for feedback – states that consumers can lodge complaints against telecom service if they consider tariffs to be burdensome.
Regulator wants all telcos to provide free access to emergency services
The draft highlights that the primary target of the regulation was to safeguard the interests of consumers.
Under the draft regulations there will be no cross-subsidy of other telecommunication services by telephone service providers and these regulations will apply to all operators.
The regulations authorise PTA to reject the tariff increase on telecom services by mobile services operators.
“The tariff will be considered to be burdensome if the profit to the licensee is abnormally higher than the reasonable rate of return taking into account the cost of operations,” the draft regulations said, adding, “The tariff is beyond the affordability level of average consumers.”
The telecom operators graded as SMP (significant market power) will have to submit the details of revising the tariff for basic telecommunication services to PTA for approval 15 days before intended launch of the proposed tariff.
The PTA can approve, amend or reject the proposed tariff increase if it is considered to be burdensome on consumers.
As per the international definition an operator is categorised as SMP if it has more than 25 per cent of a telecommunications market in the geographic area where it operates.
Whereas, the draft regulations allow non-SMP operators to set and revise their tariff for “Basic Telecommunication Services” any time and in any manner, but they too have to inform PTA and consumers about their proposed tariff at least seven days prior to the proposed applicability of new tariff.
At the same time the PTA has to powers to make modifications or reject the proposed tariff increase by non-SMP operators within seven days, if it is proven that the tariff increase would be burdensome.
Published in Dawn, February 2nd, 2022
