ISLAMABAD, Sept 24: Extension of the monopoly law to the telecommunications sector was demanded by consumer associations at a hearing held at the Monopoly Control Authority (MCA) here on Tuesday.

Presided over by MCA chairman Salim Asghar Mian, the hearing was attended by representatives of the Network for Consumer Protection (Network) and Consumer Protection Council.

Talking to Dawn later, Salim Asghar said it was the first meeting organized by the MCA as part of the consultations with various stakeholders regarding changes in the Monopolies and Restrictive Trade Practices (Control and Prevention) Ordinance, 1970 (MRTPO).

Most of the suggestions presented by Nadir Altaf on behalf of the Network, he said, had already been taken care of by the Authority in its draft of the proposed amendments.

In order to further firm up the proposals, the consumer representatives were asked to submit consumer-specific suggestions, which could form part of the consumer protection law without infringing the role of the provincial governments.

The Network is expected to send its proposals by Friday. Once these had been examined by an expert, Mr Salim said, another meeting with the representations of various consumer organizations would be held on October 7 or 8.

He said the Authority had also advised the consumer organizations of Lahore and Karachi to send their proposals in writing at a date early enough to form part of the deliberations.

Meanwhile, the MCA chairman will hold similar consultations with the leader of FPCCI.

In its presentation, the Network recommended that the scope of the monopoly control law be extended to public sector establishments.

Noting that the ordinance did not provide adequate scheme of remedies against unfair trade practices, it called for enhancement of penalties and compensations.

The law, it stressed, should encourage representation and participation of consumers. In this connection, the system of public hearing should be instituted while making decisions on all major decisions on matters such as authorization of mergers, investigation into cartels.

Calling for redefinition of “service”, it noted that important services such as telecommunications were outside purview of the present law. With the advancement of online banking and financial transactions, there is strong likelihood that the consumer would be left without a recourse against depredations of providers of these services.

The MRTPO, the Network went on to observe, did not regulate unfair trade practices in trade, commerce and industry mainly because of overwhelming focus of the law on monopolies. “It needs to shift its focus and to develop more comprehensive and broader perspective, including all kinds of unfair practices, which affect the market.”

The new legislation, it was recommended, should fix a time frame for the MCA within which to conclude its investigations with a view to improving its efficiency and promoting transparency. The Network also noted that it required a lot of patience to solicit information from the Authority.

The MCA, it strongly recommended, should be strengthened institutionally. Incorporating changes in MCA law, it cautioned, would not yield positive results unless and until there was a strong political will to strengthen the working of the MCA.