PTA Withdraws its Directives for Formation of ICH

اسے اردو میں پڑھیے

Pakistan Telecommunication Authority has issued a letter to all LDI operators telling them to consider its earlier directive, dated September 25th, 2012, for formation of ICH as null and void.

PTA’s letter, produced below, directs Long Distance and International operators to treat authority’s earlier letter – that ordered LDI operators to withdraw their Intentional Interconnection Circuits – as withdrawn.

Here is the letter that was sent by PTA to all LDI operators today:

PTA_Letter_ICH_009

Pakistan Telecommunication Authority’s decision for withdrawing its ICH (International Clearing House) formation letter is result of a Lahore High Court’s interim ruling that asked PTA to suspended ICH.

It maybe recalled that PTA had asked LDI operators to suspend their international inter-connection circuits (from October 1st, 2012) to let PTCL terminate all incoming international calls as part of establishment of ICH.

PTA’s September 25th, 2012 letter — for formation of ICH — can be found here.

It merits mentioning here that next hearing at Lahore High Court for ICH case is tomorrow, i.e. December 5th, 2012.

ProPakistani will update its readers when we get anything further on the topic.

Update: (December 5th, 2012 – 11:45 AM)

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


  • اظہر علی

    its mean Calls wapes phaly ki thara ho gye hai ab koi incoming call pe tax nai..?

    • aamir7

      Not exactly. For that PTA will have to withdraw its “Approved Rates for International Incomming Calls” letter.

      Withdrawl of that specific letter will only bring rates back to pre-ICH level.

      Here is the letter: http://i49.tinypic.com/34opiyt.jpg

      • اظہر علی

        :( MEAN KHUSH HONY KI ZARORT NAI HAI

  • Mohammad Wisal

    Hope the court will order not even Lower but Free skype calling country also and ordinary rates will be even Lower Than India but untill now No low rates .still high rates and also the Courts Decison will also be issue Tomorrow and No more delay .
    Thanks you ProPakistani

  • hmm

  • Ghulam Kebreya

    Thanks Propakistani.pk
    Appreciate

  • Saeed Chughtai

    I know the full story. ICH is actually a huge scam to benefit foreign owned LDI companies and their investors which would result in outflow of billions of dollars from Pakistan destroy Pakistan’s precious foreign reserves and reducing the amount of remittance overseas Pakistani send to Pakistan .
    —–
    Long distance international licenses (LDI) were given to companies by PTA in 2004 to bring competition for PTCL, instead they all grouped together bribed out Politicians and Government Officials in PTA, MoIT or perhaps offered them share in their LDI companies and managed to form one single monopoly company called International Clearing House (ICH) and worked out a quota deal with PTCL under guidance from PTA/MoIT . Now just like before 2004, only PTCL handles all international calls , while Rest of the LDIs are doing nothing , they will just collect cheque as per their quota , amounting to billions each month from MoIT / PTA and send those billions in precious foreign exchange to their parent companies overseas. These extra billions is precious foreign reserve money from overseas Pakistanis which now instead of staying in Pakistan goes to these foreign companies
    ————-
    If PTA / MoIT wanted to increase government revenue by increasing call rate , they would simply increase Tax (USF) payable by the LDIs . There was no need for grouping of LDIs into single company/consortium . The fact is forming of ICH will only bring benefits to the LDI operators as most of the money from price increase will go to these foreign own LDI Companies .
    ————–
    Somebody must investigate how these LDIs managed to form an illegal consortium and why PTA , MoIT are supporting them despite objection from CCP. Why PTA/MoIT is being so generous by giving billions to these LDI operators? These LDI licenses were awarded as part of telecom deregulation to have competitive
    environment . The licenses have no such provision to group together to form one monopoly consortium nor fixing rate. Therefore licenses of LDI operators should be canceled for trying to do illegal activities , spreading corruption and damaging Pakistan .

  • Saeed Chughtai

    Here is a list of 12 out of 14 LDIs and their foreign owners. I dont have info on others

    1. Link Direct International Pakistan- Owned by Egyptian investors
    ——-
    2. Worldcall LDI – Owned by Oman Investors
    ——-
    3.
    Redtone Telecom Pakistan – previously owned by Redtone Malaysia, now
    owned by , Quantum Global comprising of many Indian , Lebanese
    investors
    ——-
    4. Wi-tribe – owned by Qatar Investors
    ——-
    5. Wise Communication Systems , Owned by International Telecommunication Service (SRL), Italy
    ——-
    6. Dancom Pakistan- previously owned by Dancom Group Malaysia now owned by Egyptian investors
    ——-
    7. Telenor Pak LDI Communications – Telenor Group Norway
    ——-
    8. Wateen Telecom Pakistan – owned by AbuDhabi Group , UAE
    ——–
    9. Multinet Pakistan – owned by Axiata Group , Malaysia
    ——–
    10. Circlenet Communication LDI owned by Circle Net UAE and foreign
    investors
    ———
    11. Telecard owned by Sanjiv Ahuja , Augere Holdings , Indian and
    other foreign investors
    ——–
    12. ADG LDI owned by Dollar East Exchange Company and unknown number of
    investors

    • Hinzdan

      No Pakistanis?
      Humeh Loot Rahe hain.

      I’m shocked that there is not 1 strong local Pakistani LDI LL or CVAS licensee.

    • jabb purey pakistan mey looot maar machi huee hey toooo PTA peechey kiun

  • Sameer Ali

    After removing the ICH. Rate should be 0.0625. But we cant say anything as it becomes Sabzi Mandi later on. So lets hope what comes.

  • Imran

    Aamir, don’t you think that with this directives, rates are likely to go down to pre-ICH level?

    • aamir7

      No, because ASR and AAR were settled through another letter, which is supposed to be reverted as well.

      Tomorrow is hearing date, so let’s see.

      • Imran

        so what is the objective of withdrawal of letter today as fate of ICH is going to be decided by the court tomorrow…

        • Sameer Ali

          Simply means if ICH removed then ball will be in court of LDIs. Let they decide how much profit margin they want to keep after APC (Access Promotion Contribution).

          • Imran

            so you mean ASR will remain at 0.0625, which implies that LDIs will continue to make money and rates will not go down.

            • Sameer Ali

              Current rate is 0.088. So after removing ICH only ASR will remain as. So it will be up to LDIs on what rate they would like to sale. Because they had rates at 0.0625 or 0.05 in past without having any legal issue.

      • Imran

        Aamir, whats your final call. all discussion in this forum suggest that this letter is going to have a negative impact on their profitability (if compare with ICH regime) or do you think otherwise.

  • Saeed Chughtai

    i think all LDI licenses should be cancelled.

    • Sameer Ali

      LDIs aren’t guilty for ICH as it is forced by PTA to be implemented.

      • Saeed Chughtai

        that’s not true. i attended several LDI meetings. this ICH idea was brought about by LDIs. infact they had been discussing ICH for past 5 years . How PTA finally approved ICH is beyond logic. with ICH only PTCL will be doing all the termination while rest just collect millions of dollars each month as their quota . what a joke

        • Sameer Ali

          As per my information, there were some LDIs who don’t want to sign the ICH that’s why it took long time to be implemented. Because it was started earlier of year. I just got it from a LDI CEO.

          • Pak GUy

            I think this ICH fraud should be pursued by supreme court so nothing like this happens again. If today ICH can be approved . tomorrow who knows all mobile operators decide to get together and form one mobile company and charge us Rs20 / min

  • The letter means that ICH is dissolved and all rates will go back to pre-ICH state

    • Imran

      But Sameer and Aamir are thinking otherwise…

    • Sameer Ali

      Letter have a “may be” word. But that’s show PTA step back from the case and they know the decision of LHC which will be made by tomorrow.

  • Sameer Ali

    What you guys think that rate will be down or not? I would like to hear from Amir Attaa.

    • aamir7

      I ve replied one of other comment, I will re-paste it here:

      For revising rates, PTA will have to withdraw its “Approved Rates for International Incomming Calls” letter.

      Withdrawl of that specific letter will only bring rates back to pre-ICH level.

      Here is the letter that needs reversal: http://i49.tinypic.com/34opiyt.jpg

      • Sameer Ali

        Question is what rates were on pre-ICH level? you mean 0.0125? which is actually APC. So how LDIs will compromise again to go down at 0.0126 or 0.013? As they can set rate at 0.0625 or lower as like in past they did.

        • aamir7

          For pre-ICH rates, check this: https://propakistani.pk/2012/11/01/understanding-ich-revenues-goes-to-ldi-operators-not-to-national-exchequer/

          This will also explain you further on ASR, AAR and APC.

          • Sameer Ali

            I got you. But it confuse me little bit. Like LDI is selling at 0.088 currently with ICH. But referred Post have some huge rates which never seen in market by me like 0.17 after ICH and 0.125 before ICH. But before ICH, LDIs were selling at 0.0125. So how you can justify here.

            • aamir7

              .08 is not possible after ICH. Current total cost is at least 12.5 cents / minute, that is set by PTA.

              Before ICH, LDI used to sell at .125 or even lower by not paying to USF, and that is only why they defaulted by billions of rupees. There are still cases in courts for recovery of this money, which LDI didn’t charge (but were bound to charge) for reducing cost and hence getting more share.

              • Sameer Ali

                actually, other foreign calling card companies are buying on 8.8 directly from PTCL bypassing the AT&T. As you said on 1.25 LDI defaulted by million rupees but still they were selling at 1.25 before ICH. So point is, still they (LDIs) will bring down rate to 1.25? or they are restricted by PTA to sale on pre-ICH rate? as per your referred post?

        • Saeed Chughtai

          well the rates should be similar to neighboring countries like china, india, Bangladesh, Srilanka, etc. but it doesn’t matter what rate PTA sets. what matters is all LDIs must run their own LDI operations. this way there will be competition . their license require minimum of 14 operational Point of Presence (PoPs) in Pakistan .if they refuse to run their operations, than licenses should be cancelled.

      • Irfan Shabbir

        Amir! But this letter is for year 2011 not 2012 and rates are increased from 1st October 2012. Then how come this letter may have any effect on calling rates?

  • S. Siddiqi

    PTA has issued this letter to play a trick with the High court for tomorrow’s hearing. Infact, call rates are still not being dropped as LDIs are still working in an unofficial cartel as ICH Agreement and MOIT Policy Directive were suspended by the Court.

    • Sameer Ali

      how you can say that? do you have any reference or proof. I would like to hear more from you and explain why?

      • Saeed Chughtai

        well proof is that rate to pakistan is still same .

        • Sameer Ali

          it should be reduce tomorrow after LHC orders,

  • Imran

    Well nothing is gonna change the rates going to remain same since PTCL and many other peoples making very big money they will not let the rates go down

  • Asma Khan

    ok 1 cent is a big loss our people need to understand this gives the business to all big usa companies and Indian firms who own voip services. 1 cent actually puts our country at loss. 10 cent is too high for customers as it takes a lot to earn in these countries. i hope a mid way is sorted out. InshAllah.

    • Pak GUy

      what do you mean 1 cent is a loss? do you know who owns these LDI companies??? . not a single company is owned by pakistanis. all the revenue goes out of pakistan. do you know rate of call to india , china , usa . its less than 1 cents per min. rate to bangladesh is 2.5 c per min

      • Asma Khan

        at 1 cent vonage/other voip companies sell unlimited to Pak and there is no calling out from Pak. Millions rely on phone businesses how do you see it helping I m not in favour of 10 cent but i dont think 1 cent is any good 3 to 5.

        • Pak GUy

          okay let me put it another way. government can set tax at whatever level. lets say 6c per min. now the 14 LDIs are free to sell above 6c . this way 6c is guaranteed to go to government. this is how the mobile operator work

          but in ICH case, PTA told 14 LDIs to sit home , PTCL will do all traffic , LDIs will get cheque each month as per quota.
          —–
          do you know that atleast 200 million dollars / month was suppose to generated and distributed among the LDIs.

          • Sameer Ali

            Government tax is called APC. Which is 1.25c. Before ICH every LDI were doing its own sales and they were selling at APC rate. Which come in case of not paying anything to government. Where before all LDIs License was suspended by SC because they are defaulter of millions rupees to PTA. Thats why ICH come and PTA took all sales from LDI and set a standard rate. I was in favor of ICH but rate should not be set too much high. However ICH was illegal. PTA should show some restrict policy for LDIs. So they should pay APC.

            As you know, LDI should have 14 POPs operational to keep license active. Which cost pay by LDI every month to Mobile Operators and then their own expenses i.e staff, offices etc. So they have to set a rate where they can earn some profit as well as pay APC to government.

            So 4-6/min rate will relief both parties (LDI and Caller)

            • Pak GUy

              well who told LDIs to sell at 1.25c or below cost. the only reason they were selling below cost was because PTA was very lenient towards LDIs in collecting USF/APC payable . had they suspended license as soon as a LDI defaulted on payment, none of the LDIs would default.

              Also what do you mean LDIs were doing their own sales. off course they have to do their own sales. all telecom operators have to do their own sales.

              • Sameer Ali

                That’s call SIYASAT. Jamhooori Siyasat.

        • Sameer Ali

          i agree

        • Pak GUy

          4b gentle is owned by 4b brothers but do you know they have set up a front end company to receive all payment.

      • Sameer Ali

        4B Gentle is own by Pakistan 4 Brother Group. Asma is right. Pak Guy it is opposite of your comment. All money come to Pakistan via Wire/TT to LDIs Pakistan Bank Accounts. Rate should not like 1c or 8c. It should be 5-6c which can give relief to both parties.

        • Pak GUy

          as far i know 4b gentle had formed a front end company called silk solutions in uae to receive all their payment.

          anyway point is that its NOT government job to give free handout. Govenment job is to decide APC/USF amount . now its upto LDIs to sell above that amount . its called deregulation and competition. thats why LDI licenses were given in the first place

          • Sameer Ali

            Silk Solutions is not LDI of Pakistan. Where ever they receive payment out of country. It will have to come to Pakistan LDI bank account. Competition does not mean to eat APC/USF. PTA should make a strict policy against collecting APC from LDIs

            • Pak GUy

              exactly that’s my point. PTA is just too generous with them. LDIs have continuously defaulted on their payment for years and formed offshore companies to keep the money outside……pta doesn’t care. and instead of cancelling their licenses … PTA told them … “just sit home , we will pay you millions of dollars for doing nothing “

              • Sameer Ali

                So what do you think. What will be new Rates after 13th December LHC hearing?