PTA Seems Least Bothered About SMP's Aggressive Move

Pakistan Telecommunication Authority has apparently not questioned Mobilink’s recent promotion, in which it has offered its entire prepaid base off-net rates same as of on-net.

We have discussed this before that through a recent promotion Mobilink’s Jazz One Package holders can make off-net calls as low as Rs. 1 plus tax per minute which is even lesser than interconnection charges per minute.

Being Significant Market Player, Mobilink can’t offer such an aggressive package which may result in severe damage towards the industry. Telecom market is already witnessing heavy price war amongst operators; however so far this pricing war was confined to on-net tariffs, and this move by Mobilink can ignite off-net tariff competition as well.

Mobilink’s spokesman confirmed us that the company has not received any notice or warning from PTA regarding the said package, while on the other side we are still waiting for PTA spokesman’s comment over the issue, for last 2 days.

Officials from cellular companies while commenting on Mobilink’s package said that it is PTA’s responsibility to bound SMP to notify the details of packages and promotions prior to launching them. “If this is the case, and if Mobilink had notified PTA prior to promotion launch, then I am unable to comprehend how the authority allowed it?” said a cellular company official.

While on other hands, a telecom analyst said that this package will not only damage telecom market but will also act negatively for Mobilink itself. He said, in already very competitive telecom market Mobilink is equally suffering the downfall of the national economy; and in such a situation, halving your revenues is like hitting your head into wall.

Through our sources we know that this package got approved by Rashid Khan, new CEO of Mobilink, despite it was once rejected by Mr. Zouhair Khaliq during his tenure.

Tech reporter with over 10 years of experience, founder of ProPakistani.PK

  • Just one question. Are not SMPs allowed to have special offers for limited period, as seems the case with this offer, without PTA approval?

    • @saqib, Let me quote Mobile Cellular Policy, it says

      “The Government believes that the success of market liberalization depends on the development of a fair competitive environment for all licensees. In this regard, Mobile and fixed line licensees who emerge with Significant Market Power (SMP) shall be prohibited from abusing their dominant positions through anticompetitive conduct. PTA will incorporate provisions of anti-competitive practices in the licenses for SMP(s).

      Operators with SMP will also have to produce a Reference Interconnection Offer (RIO)detailing the services and tariffs they provide to other Licensed operators.”

      I don’t find it saying that it can promote time based promotions without intimation.

    • @Ardisher, Thanks for your input, and I still value it as always!

      But I am afraid that I am not convinced by your argument this time. I am reporting what is been happening, if there is anything that you find not true or not properly reported, please let me know. I will be more than thankful to you and will change the information in my posts.


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