CCP takes action against PESCO for abusing dominant position

Requires it to restore Right of Way for cable, internet service providers

ISLAMABAD:

The Competition Commission of Pakistan (CCP) has in its order found that Peshawar Electric Supply Company (Pesco) has acted in violation of Section 3 of the Competition Act.

This entails abusing its dominant position by imposing discriminatory terms and unfair trading conditions in the provision of Right of Way (ROW) to cable and internet service providers in Peshawar.

In the order dated December 13, 2022, to ensure compliance and encourage corrective behaviour, CCP directed the respondent to restore access to the ROW and provide the ROW to Nayatel and Cybernet, on fair, reasonable and non-discriminatory terms no later than 21 days since the receipt of the order.

In case of failure, the respondent shall be liable to pay a fixed penalty of Rs75 million and an additional penalty of Rs0.5 million for every day after the first of such violations had occurred.

Pesco was dominant in the market for ROW through electric poles availed by different types of cable service providers in the geographical boundary of Peshawar, as it solely owned and managed the poles and there were no other substitutes.

For the ROW being provided to the cable operators, the complainants (Nayatel Pvt Ltd and Cyber Internet Services Pvt Ltd) were charged an enhanced fee from Rs10 to Rs100 per pole as compared to basic TV cable operators without any legitimate objective justifications. The terms have been held as discriminatory and in contravention of Section 3(3)(b) of the Act, the order said. Pesco abused its superior bargaining position and imposed further unfair trading conditions in contravention of Section 3(3)(a) of the Act on the complainants, it said.

PESCO’s conduct was also discriminatory as decommissioning notices related to removal of cables were only sent to the complainants. In this connection, the bench found support from the applicable telecommunication regulatory regime, particularly in terms of Section 27A of the Pakistan Telecommunication (Re-organisation) Act 1996 and the 2020 Public and Private Right of Way Policy Directive.

The commission emphasised that access to broadband technology has significant beneficial economic and social impacts and is in line with the objectives of the government to promote digital inclusion.

It also recommended that all private and government stakeholders, including the respondent, create a uniform policy for the deployment of broadband technology and ROW that may address space and safety issues.

Published in The Express Tribune, December 20^th, 2022.

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