Mobile operators’ freewill tariff increase to be restricted

By Web Desk — The telecom regulator plans to contain the dominance of mobile phone operators by limiting freewill tariff increases and repurposing their profits for other telecom services, Dawn has reported.
Pakistan Telecommunication Authority (PTA) has requested feedback on the draft ‘Tariff for Telecommunication Services Regulations, 2022’ that will obligate all telecom operators to provide consumers with free access to ‘Emergency Services’. A limited number of resources will also be made available to the operators in the event of a national disaster or calamity, according to directions from the PTA.

According to the draft – which is available on the PTA website for comment – consumers can lodge complaints if they find tariffs burdensome.

In the draft, it is stated that the primary goal of the regulation was to safeguard the interests of consumers.

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There will be no cross-subsidies of other telecommunication services by telephone service providers, and the draft regulations will apply to all operators.

The regulations authorize PTA to reject tariff increases on mobile services by operators.

“A tariff will be considered burdensome if the profit to the licensee exceeds the reasonable rate of return, taking into account the cost of operations,” the draft regulations stated, adding, “The tariff is beyond the affordability level of average consumers.”.

Operators with significant market power (SMP) are required to submit the details of revising the tariff for basic telecommunication services to the PTA for approval 15 days before the proposed tariff is to be launched.

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If the proposed tariff increase is deemed burdensome on consumers, the PTA can approve, amend or reject it.

In addition, the PTA has the power to change or reject the proposed tariff increase by non-SMP operators within seven days, if the tariff increase is deemed burdensome.