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Illegal Grey Traffic Crippling Legal and Licensed Industry for Nearly a Decade!

By  | 16, Apr 2014 | 10 Comments



GrayTraffic inner Illegal Grey Traffic Crippling Legal and Licensed Industry for Nearly a Decade!

By an LDI Operator

Grey traffic operators have been earning billions of rupees openly selling their illegal services for over a decade now. As early as 2005/6, the PTA annual report of 2006 reported a loss of approximately Rs. 3 billion during 2005 due to illegal termination of international incoming traffic.

The unchecked greed of grey traffickers is fed at the cost of crippling a legal and licensed industry and more importantly depriving the people and the government of Pakistan of its rightful and much needed foreign exchange earnings for nearly a decade.

The published Mission Statement of the Ministry of Information Technology (MoIT – www.moit.gov.pk) reads

“The enabling arm of the Government of Pakistan for planning, coordinating and directing efforts to initiate and launch Information Technology and Telecommunications programs and projects aimed at economic development of the country”.

An industry expert believes, “truthfully, the International Clearing House (ICH) LDI industry coopetition agreement amply supports this mission; therefore,the MoIT can only take the position that ICH is essential for the continuing and future economic development of the country.”

Here are 6 reasons why?

  1. Inflow of one (1) billion US dollars to the country from abroad since ICH began 18 months ago.
  2. Direct taxes paid to the GoP in the amount of 300+ million US dollars
  3. Income taxes paid to the GoP in the amount of PKR 200 million
  4. Record profits for PTCL which receives 50% of ICH revenues and whose largest shareholder is the GoP
  5. Broad participation platform for Pakistanis earning abroad in contributing much needed foreign exchange reserves for Pakistan
  6. A profitable telecom sector remains vibrant and funds continued investment in the sector supporting local economic development.

The ICH is a significant positive contributor to the economy of Pakistan and therefore, the ministry should find ways to support the initiatives of the ICH to stop the illegal activities. Despite the ICH investing more than 30 million US dollars in monitoring equipment over the last 18 months, the illegal grey traffic business flourishes.

“There are just too many loopholes and too much corruption to kill this menace,” the source dilated. “There remains only one solution, increase the Mobile Termination Rate (MTR) that mobile companies receive for terminating international calls (MTRi),” he added.

The LDI body makes a plea to the MoIT, who have rightfully taken note of the tremendous losses Pakistan continues to suffer at the hands of an illegal grey traffic industry, to put an end to this menace by issuing policy directivesto increase the Mobile Termination Rate – International (MTRi).

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  • Muhammad Shomail Haider

    It is due to PTA itself, they are doing things which get people into business and others to use gray providers. If PTA had kept the rates lower they would have been out of business long ago and things like 3g and other options for cheaper calls are made available, it wouldn’t have happened. Lower rates bring more inbound traffic, which is that actual money making of a provider.

  • http://www.dailynewscompany.com/ Daily News Company

    ye tu galat hai muje UK se calls ati hein tu mostly number jazz ka hota hai tu muje es baat ki samjh nahi ati k ye kya masla hai PTA ko chahye

  • Ejaz

    Grey Traffic has significantly increased ever since PTA took control of Monitoring System from “Agency”. Industry lost another 3 Million minutes per day traffic to grey routes after this administrative change. If this is the competency level of PTA for curbing grey traffic, how it will be reduced?

  • عبدالروف کمبوہ

    یہ خود بڑے چور ہیں عوام کو لوٹنا چاہتے ہیں انڈیا تو کوئی ٹیکس نہیں لیتا ۔

  • LDI ASPIRANT

    OPEN UP LDI LICENSING FOR ALL OTHERS AND THEN WE WILL BELIEVE IT IS NOT A CARTEL.

  • Danish

    how does grey traffic works? is there any graphical presentation / process flow to understand the process?

    • Usman Ali

      no such image i have now, but very simple is
      some one call you from abroad, the call then transfer over internet using voip (voice over internet protocol/ like viber or skype) and through that channel it comes to pakistan, In pakistan illegal exchanges receive those calls on mobile network sim and then transfer the call to the desired number. If you receive a call from Uk or any other country, you will see a local mobile number which actually received the call and transferring to your number.
      If you ever received international call from local mobile number, report that number to pta through any mean (toll free, website, email).

    • aamir7
  • Irfan

    I have reported a number of times to PTA about the local Sim numbers but nothing happened still getting overseas calls through those numbers.

    The only reason they started the complain system, so they can get their share from these 3rd parties.

    Pakistani Zindabad, they always find ways to make money for themselves under legal umbrella of system.

  • nomi

    Everyone knows they themselves are involved in this business even this is a very high level game.