Image Image Image Image Image Image Image Image Image Image
Scroll to top

Top


CCP Finally Wakes Up to Rescue Mobile Users Against Service Charges by Operators

By  | 24, Dec 2013 | 21 Comments

Pakistan Mobile Phone Users CCP Finally Wakes Up to Rescue Mobile Users Against Service Charges by Operators

Competition Commission of Pakistan has finally issued show-cause notices to all five cellular operators against additional service charges they had imposed back in 2011.

It maybe recalled that all five operators had imposed service charges on all reloads in July 2011, and ranged from 1.0 to 1.5 percent on recharge of balance for prepaid connections under various titles such as operational charge, maintenance fee, administrative fee etc.

Later on, the percentage of these additional charges was revised and increased by the operators in 2012, and again in 2013 ranging from 3% to 5%.

CCP found that these additional charges do not relate to any service offered to the consumers.

CCP, in this regards, asked telecom operators for the information. Based on the replies from operators, CCP presented all its findings and replies from operators in a fact finding report.

This enquiry report by CCP can be downloaded by clicking this link.

CCP maintained that all these additional charges may constitute hidden costs of acquiring cellular telecommunication telephony and data services, giving the impression that the prices of such services are lower than they actually are in reality, thereby constituting a deceptive marketing practice in violation of Section 10 of the Competition Act, 2010.

Hence all five operators were ultimately issued a show-cause notice yesterday to explain their position on additional charges.

Analysts believe that CCP should have considered the cartelization of telecom operators as they collectively imposed almost equal service charges – against no service – during 2011. These charges were again revised and increased in 2012 and 2013 in a set pattern, hinting that all operators have joined hands in imposing extra charges under different names.

Analysts said that CCP will have to set its direction right to get the telecom customers some relief.

Industry experts said that CCP has simply forgotten that all telecom companies are deducting 5 percent service charges on all reloads since 2008. These 5 percent service charges were first imposed by Telenor in September 2008, while other operators simply followed and imposed similar charges later on.

CCP probably forgot that cellular companies are charging 8-10 percent – and not 3 to 5 percent – of additional charges without offering any services.

Just to add, following is the breakdown of charges/taxes a telecom customer pay on telecom services:

  • WHT: 15 percent
  • GST: 19.5 percent
  • Additional Charges (imposed in 2008): 5 percent
  • Additional fee (imposed in 2011, 2012,2012): 3-5 percent

Total charges: 15+19.5+5+3-5 = 42.5-44.5 percent.

That is, almost half of the airtime is consumed for paying additional charges and taxes.

Moreover, CCP should also study the similar and equivalent charges that were imposed on helpline calls. Its a long way to go CCP!

Related Stories:

  • Jkfooty

    Taking action against service charges in 2013 that were implemented in 2011 ? Good job

    • balars

      Better late than never, no ? :)

    • Yasir Mahmood

      Same Policies
      Same Politics
      Same Corruption
      Same LootMaarExcept Faces,Nothing Changes When a Govt Change,

    • ZeeshanShahid

      CCP has been fighting to keep its teeth which are taken away by trade cartels on the premise that ‘competition is a provincial subject’. I say it’s a good start after getting their feet on the ground.

  • Jkfooty

    What about those Trillions they made in these 2 years ? May be these companies refused to give them the share so taking the action now eh

    • Azi

      they should return balance back to its user :)

      • MJK

        CCP has one eye with which it sees Telecom industry but with another eye it totally miss the other industries…what about FMCG, Automobile etc. Lets take the average prices and the rate of increase for telecom industry in the last 6 years and compare the same to the rates of automobile. If thats not a good comparison. Take an onnet call rate per min in UAE/India/Malaysia and compare it to Pakistan and then do the same for other industries.
        Telecom industry is one of the best indusry left in Pakistan and it is already on the decline.. thanks to the intrusive policies of the government and lack of regulations. The industry is one of the most taxed industries in Pakistan and i wonder why our CCP is silent on those measures. The industry has given more jobs to the Pakistan people compared to any other indusry and many of the employees of Pakistani telecom industry have been globally recongnized and hence hired at lucrative positions. These employees in turn send back hefty remittances.
        After all this, when every thing is just going up and up and up, our people still expect the telecom industry to keep bringing down their rates.

        • ZeeshanShahid

          Automobile: Google “CCP RELEASES UPDATED STUDY ON AUTOMOBILE SECTOR IN PAKISTAN”

          FMCG: Google Shangrila (Pvt.) Ltd. CCP

          Both: Google “CCP’s ACTION RESULT IN COMPLIANCE BY SUNLAND FOODS, TOYOTA, WITH COMPETITION LAW”

      • Yasir Mahmood

        If thats the OutCome.I Am Expected to be Rich

  • Saeed

    CCP has needed some commission from the amount as they earned within couple of years.

    Jis mulk main yeh sub loot phaat ho rahe ho wahan par kaisay Allah ki madad aiey ge. Jis par bhi hath dalo wahi say corruption ki awaz arahe hote hai.

    Yeh salay itnay arsay say kia kar rahy tay jo ab in hooosh aya hai.

  • Irfan

    New msg from Telenor

    Muaziz Saarif, Behtar Sahooliat ki frahmi k liye 30 Dec 2013 say 10 paisa + tax ka izaafi call setup charge her package, free or bundle call per liya jaye ga.

    • Amir

      Yeah I received it too this morning.

    • http://ptclevosharing.blogspot.com/ Muhammad Anas

      Hahahahahah! What you’ll do now CCP???

  • Omair Ahmed

    CCP ko bhooka mar diya ab result… I want to know the demand put forth by CCP before taking this decision,,damn that must be huge..!

  • WYVV

    WHAT ABOUT THE CALL SET-UP CHARGES OF MOBILINK ?

  • http://about.me/aaqil Aaqil Mahmood

    Good move, we don’t need extra taxes policies of Norway in Pakistan

  • zain

    although a good step, but look at circumstances as well.
    higher inflation rate .
    very high taxes.
    no electricty for 12 hours per day(on avergae)
    how will companies survive ??
    i always thank to God that even in highly adverse circumstances where basic facilities like water, gas ,light are not available , we have very good telecom services available

    • Mohammad Tayyab

      Hahahahahahaha. Bus Banda Bookha Rahay. Companies Bookhi na Rahain. What a philosophy…. These companies can’t compensate us. I think you work for any telecom operator. What if they through you out from your job if they started Job recession. Think positive for everyone. never give opinion for little group of peoples who are earning huge money from our pockets.

  • Mohammad Tayyab

    CCP should give due importance to take stern action that all these operator’s cartel. Secondly a huge penalty be imposed on all these operators in the form of paying damages. Since the networks had not improved any of services? why they are charging such amount without any special offerings. Consumers should be benefited with remedies from these operators. Moreover CCP should consider the availability of more telecom operators so that there should be environment of Competition within country.

    • ghulammustafa bhatti

      A.O.A THANKS FOR ALL AND THANKS ALSO PLEASE BE ACCEPT BEST WISHES . PLEASE GOOD EFFORTS HAS BEEN TAKEN AND COMMENT ON THIS TOPIC IN THIS REGARD………I AGAIN SAYS SALAM TO ALL ABOVE DEARS . 2………DEAR ALL I AM NOW FRIST TIME COMMENT IN THIS REGARD…..WHAT IS THE C.C.P. AND ITS A POWERFULL OR UNDER THE WORK OF ALL CONCERNED CELLULAR COMPANINS. BEACUSE WHY NOT ISSUE THE SHOW CAUSE WHEN THE ILLEGAL RATES IMPOSED 2008 , 2010, 2011,2013, THE DEDUCATIONS HAS BEEN MADE MILLIONS COUNSUMERS . OF ISLAMIC REPUBLIC OF PAKISTAN. THE CCP SECTION 10. OF 2010. WHICH INFORMED OR NOT WHEN THE INCREASE THE SAME ……3………..DEAR WHEN SAME TO RETURN …..OR MAY BE THE COMPANIES TO GO THE ROOT WHICH IS MOST INTELEGENT / COMPETENT HON LAWERS . WHICH IS OUR FRINDS AND RESIDENT OF OUR COUNTRY.4………….THE ALL COLLECTIONS THE ALL KIND OF TAX …………BILLIONS AND UNLIMITED……….4,,,,,,,,,,,,,ALL AFTER THE DEDUCTION FROM NATION IN THIS REGARD SAME TO BE ACCOUNT FOR C.B.R .FBR ETC….IF THE SAME IS ACCOUNT FOR IS GOOD………5……..DEAR BE CHECK AND TAKE NOTICE IN THIS REGARD, 6,,,,,,,,,,,I AND WE ALL REQUESTED DEARS OUR BE ESTABLISH NEW FOURM TO SOLVE THE RIGHT OF CUNSUMER,,,,,,,,THANKS , I AND WE SAYS SORRY TO SAY IF THE ANY POINT HIT THE HEART IN THIS REGARD PLEASE BEST WISHES FOR ALL AND BE GOOD AND HELP ALL WITHOUT ANY COST WITHIN THE LIMIT OF WON , THE NEEDY AND WIDOWS AND APHRANS OF WORD. WITH BEST REGARD PLEASE/.

  • Shahid

    The Telecom Maafia has joined hands in Looting the Common Man