Grey traffic: Around 40% international calls coming in through illegal channels
Operators find a way to route calls through local mobile numbers
ISLAMABAD:
Grey traffic in international telephone calls has shot up to 40% of the total international incoming calls causing losses of at least Rs6 billion annually, according to documents.
A presentation given to the Prime Minister Yousaf Raza Gilani on grey trafficking on incoming international voice traffic, exclusively available to The Express Tribune, revealed that around 4.8 billion minutes per year are coming into the country through privately setup illegal gateways or mixing of traffic by even licensed long distance international operators.
The calculated minutes are 40% of the total international incoming voice traffic which is estimated at 12 billion minutes in a year.
The Ministry of Information Technology presentation states that “out of the total 12 billion international minutes terminated in Pakistan about 7.2 billion is legal traffic coming in through Long Distance International Operators”.
Grey operators enter into arrangements with foreign operators and bring international calls through illegal gateways and route such calls to their desired numbers as local calls. They route such calls through local mobile numbers, circumventing Access Promotion Contribution (APC) which is analogous to smuggling.
The existing APC charges are 1.25 US cents and of that the government’s share is 0.018 US cents. The international grey operators avoid legal channels to save APC charges, said a senior official of the IT ministry while talking to The Express Tribune.
The presentation, based on Pakistan Telecommunication Authority estimates, shows that the telecom sector revenue and government receipts for USF are currently incurring a combined loss of Rs5.7 billion ($64.5 million) on account of an estimated 4.8 billion illegal international incoming calls. These losses have worked out on the reduced rates of 1.25 US cents which have been brought down after the PTA failed to crackdown on grey traffic, said the IT Ministry official.
There are unconfirmed reports that an influential cabinet member is behind grey traffic business. Senator Ishaq Dar of PML-N recently disclosed during a meeting of the Senate Standing Committee on Finance that Etisalat – 26% shareholder of Pakistan Telecommunication Company Limited – has been withholding $800 million outstanding PTCL tranches due to Pakistan’s inability to crackdown on illegal voice traffic and not because of a delay in transferring the property.
The government has constituted a Cabinet Committee on curbing grey traffic. The recommendations of the committee were presented to the Prime Minister on November 17. Sources said the premier delayed a decision on these recommendations.
The cabinet committee has worked out two broader proposals. The first option, strongly backed by the PTA, recommends elimination of APC charges to remove the incentive for grey operators.
According to the second option, which has an endorsement from the majority, the APC rates should be stabilised and fixed at a level for three to four years.
Published in The Express Tribune, December 6th, 2011.
Grey traffic in international telephone calls has shot up to 40% of the total international incoming calls causing losses of at least Rs6 billion annually, according to documents.
A presentation given to the Prime Minister Yousaf Raza Gilani on grey trafficking on incoming international voice traffic, exclusively available to The Express Tribune, revealed that around 4.8 billion minutes per year are coming into the country through privately setup illegal gateways or mixing of traffic by even licensed long distance international operators.
The calculated minutes are 40% of the total international incoming voice traffic which is estimated at 12 billion minutes in a year.
The Ministry of Information Technology presentation states that “out of the total 12 billion international minutes terminated in Pakistan about 7.2 billion is legal traffic coming in through Long Distance International Operators”.
Grey operators enter into arrangements with foreign operators and bring international calls through illegal gateways and route such calls to their desired numbers as local calls. They route such calls through local mobile numbers, circumventing Access Promotion Contribution (APC) which is analogous to smuggling.
The existing APC charges are 1.25 US cents and of that the government’s share is 0.018 US cents. The international grey operators avoid legal channels to save APC charges, said a senior official of the IT ministry while talking to The Express Tribune.
The presentation, based on Pakistan Telecommunication Authority estimates, shows that the telecom sector revenue and government receipts for USF are currently incurring a combined loss of Rs5.7 billion ($64.5 million) on account of an estimated 4.8 billion illegal international incoming calls. These losses have worked out on the reduced rates of 1.25 US cents which have been brought down after the PTA failed to crackdown on grey traffic, said the IT Ministry official.
There are unconfirmed reports that an influential cabinet member is behind grey traffic business. Senator Ishaq Dar of PML-N recently disclosed during a meeting of the Senate Standing Committee on Finance that Etisalat – 26% shareholder of Pakistan Telecommunication Company Limited – has been withholding $800 million outstanding PTCL tranches due to Pakistan’s inability to crackdown on illegal voice traffic and not because of a delay in transferring the property.
The government has constituted a Cabinet Committee on curbing grey traffic. The recommendations of the committee were presented to the Prime Minister on November 17. Sources said the premier delayed a decision on these recommendations.
The cabinet committee has worked out two broader proposals. The first option, strongly backed by the PTA, recommends elimination of APC charges to remove the incentive for grey operators.
According to the second option, which has an endorsement from the majority, the APC rates should be stabilised and fixed at a level for three to four years.
Published in The Express Tribune, December 6th, 2011.