ISLAMABAD: Pakistan Railways has decided to reverse a federal cabinet-approved policy governing the right of way (ROW) for installing telecom infrastructure, a decision that may increase the cost of internet cable installation in affected areas.

The Public and Private Right of Way Policy Directive 2020, approved by the federal cabinet, was binding on all the federal and provincial government institutions, including cantonment areas, railways, etc.

The policy states that “in case of public right of way, the public authority shall assess the right of way fee … on the basis of no profit, no loss” and it cannot “treat grant of permission to licensees for the use of the right of way as a means of commercial benefit of the right of way, imposition of tax or revenue generation.

Based on the directives of the federal government, the railway ministry approved its ROW policy in February for installing fibre-optic cables across railway tracks, which includes a fee structure for all operators without discrimination.

Operators, ISPs fear move will increase cost of business and deprive some people of internet

However, Pakistan Railways has recently decided not only to reverse the ROW policy formulated by the railway ministry but also to ignore the directives set by the federal cabinet.

A senior railway official told Dawn the decision was recently made by Railways Minister Khawaja Saad Rafique on the grounds that the ROW policy and directive finalised by the former PTI government were causing significant losses to railways.

According to a copy of a letter available with Dawn, a meeting chaired by the railways minister held on June 13 at Pakistan Railways’ headquarters in Lahore discussed that “in order to get maximum revenue for Pakistan Railways, a competitive bidding amongst the operators/firms may be arranged”.

In this regard, the railways secretary had constituted a committee to recommend amendments to the ROW policy and devise a mechanism of competitive bidding among the operators, it said.

Telecom operators and internet service providers have expressed serious reservations about the planned move and described it as a violation of the agreed law with all stakeholders.

“This has always been a serious issue in all sectors in Pakistan — there is no guarantee of policy consistency,” said a senior official of an internet service provider.

“The letter has not been shared with us,” the official said. However, if the policy was reversed, the official said there would be only two ways ahead: “either all internet and telecom companies, including PTCL, Wateen, Nayatel and Multinet, pay very high charges to lay cables around railway areas or we do not offer facilities there.”

It is expected that internet companies would challenge the railway ministry’s decision to auction the right of way instead of charging the prescribed fee in court, but it will delay the process of expanding fibre broadband penetration across the country, which offers the highest speed and reliable internet at low costs compared to mobile broadband.

Published in Dawn, July 14th, 2022