Regulation: PTA opens discussion on price floor regime

Authority decides to introduce regime to address issue of unhealthy competition


APP November 24, 2016
Pakistan Telecommunication Authority (PTA) withdrew directives on clearing houses which led to spike in calling rates for overseas callers.

ISLAMABAD: Pakistan Telecommunication Authority (PTA) has sought consultation from all telecom users, stakeholders and general public asking them to submit their views on price floor regime for mobile broadband services.

The authority has decided to introduce the regime to address the issue of unhealthy competition and to maintain profitability of the telecom sector.

PTA has planned to set minimum level of retail prices for mobile data and broadband services, while the minimum mobile broadband speed would also be realised upwards.

PTA’s consultation paper on recommended price for data services stated to protect and safeguard interest of consumers as well as operators. There is a need to set a level of retail tariffs/prices which should encourage operators to further invest in their networks and acquire more spectrum.

In this regard, the minimum mobile broadband speed would also be realised upwards.

The authority is of the view that appropriate price for data services will lead to several benefits, which include introduction of a healthy and competitive regime leading to expeditious network rollout of services and investment in mobile broadband segment for sustainable mobile broadband proliferation.

Considering the advantages, PTA has sought comments on issues highlighted in this consultation paper within two weeks.

Published in The Express Tribune, November 25th, 2016.

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