PTA terms tariff increase by mobile operators 'justified'

Cites higher financial costs due to inflation, increase in fuel prices and devaluation of rupee as main reason

KARACHI:

The Pakistan Telecommunication Authority has termed an increase in retail tariffs of mobile companies from 2021 to 2024 justified, citing higher financial costs due to inflation, increase in fuel prices and devaluation of rupee.

“Since March 2021 till May 2024 fuel prices have increased by 158 per cent, inflation increased by 83 per cent, while rupee depreciated against dollar by 44 per cent. Moreover, policy rate increased by 214 per cent, increasing the financial cost of operators,” the PTA has stated in an official reply to an adjournment motion filed by ruling PPP MPA, Muhammad Asif at the Sindh Assembly.

The lawmaker had complained in his motion that telecommunication companies operating in the country have not only increased cost of mobile packages but their network performance in Karachi and other parts of Sindh has declined.

The Sindh Assembly secretariat had sent the matter to the PTA for its comment.

In its written response, the PTA authorities have stated that the PTA monitors the tariffs and taking steps to improve network performance of the telecommunication service. However, the PTA only regulates tariffs for ‘dominant operators’ (SMP) only. Non-SMP operators are free to set their tariffs as per their business decisions, the PTA said, adding that the Jazz and Telenor have been declared as SMP operators by the PTA.

According to the PTA officials, several steps are being taken to improve telecommunication services including conducting quality surveys of cities, highways, motorways and railway tracks. Besides, increase in BTS (towers) is also made yearly as part of network expansion.

At present, 245 towers are available in Punjab, 105 in Sindh, 65 in Khyber-Pakhtunkhwa, 30 in Balochistan and 10 in Azad Kashmir and Gilgit-Baltistan, it added.

“However, certain areas still face issues with network availability, mainly due to prolonged power outages, limited access to commercial power, delays in securing right of way and incidents of theft or vandalism,” the authorities said.

They added that limited access to commercial power impact at least 17 per cent BTS sites.

According to the PTA authorities, the quality of service has improved due to continued efforts by the operators. Adequate voice and data services are now available along major highways including M-9. However, Hyderabad-Sukkur section is still under construction so network deployment and subsequent surveys will be made once it becomes operational.