CCP Issues Show Cause Notice to Bahria Town for Blocking Nayatel in Rawalpindi

The Competition Commission of Pakistan (CCP) has issued a Show Cause Notice to Bahria Town (Private) Limited for violation of Competition Act for allegedly abusing its dominant position by not allowing Nayatel to provide cable, internet and telephony (CIT) services in phase 1-6 of Bahria Town, Rawalpindi.

CCP conducted an inquiry after receiving an email from a resident of Bahria Town Rawalpindi alleging that the management of Bahria Town had restricted consumer choice and competition in the market for CIT services by allowing only one service provider (PTCL) to operate in phase 1 – 6 of Bahria Town, Rawalpindi.

The inquiry report found that Bahria Town has a dominant position in the relevant market to grant “right of way” for provision of telephony and broadband services in phase 1-6 of Bahria Town, Rawalpindi and that it had misused this dominance by not granting the right of way to Nayatel.

The report observed that this refusal was discriminatory and resulted in loss of any choice for consumers and restriction of competition in the market.

In terms of the show cause notice, Bahria Town has been provided an opportunity of hearing before a bench of CCP on August 18th, 2016 to explain its position.

It is pertinent to mention that Section 3 of the Competition Act, 2010 prohibits businesses with market power (dominant position) in the market from abusing it to, exclude competitors, conduct business on unfair terms, discriminate amongst different trading partners, and refuse to deal.

This case could set a precedent for Bahria Town and other housing societies across Pakistan, that block certain service providers in their localities due to exclusive contracts with single operator.

CCP said that it continues to work towards promoting a healthy competition in all spheres of commercial and economic activity and to protect consumers from anti-competitive behavior.

  • AbdulB1

    Good, now this should bring PTCL to its knees.

  • Zawyar Ur Rehman

    A step in the right direction.

  • Umer

    Same issue with DHA Phase 2 … Nayatel is not allowed there and only PTCL can operate there.

  • Farhan

    Idiots! Would Nayatel also lay down fiber at there own cost in Bahria Enclave? And if CCP has a spine they should start with DHA around the country where it’s the same rule.

    I agree with the rule anyway since it’s private society they should decide these rules!

    • saqib

      yes i think nayatel will surely target enclave too when potential clients will reach to the required numbers

    • Umair_CL

      DHA is also being investigated, ProPk only mentioned Bahria

  • Atif

    Kudos to the resident. Right forum and right approach definitely helps. I can well imagine the pain of all those who are on mercy of PTCL. Its been two and half years now after shifting to Nayatel and there hasn’t been a single day or even a single hour where I had my Inet not working. PTCL was a nightmarish experience and they won’t learn as any other governmental department in this country.

  • Aqazib

    Seems like they targeted Bahria because PTCL and others are equally guilty offenders, yet carry on doing as they please. I for one would rather get great provider from Bahria than to deal with the offensive smell that is telecom’s treatment of their customers.

  • Atif

    here is the problem, this show cause will do nothing, there is no competition there, even ptcl doesn’t give you connection, ive tried it but in phase 8 though.

  • Hassan Imtiaz

    So how did it go ?

  • Sandtiger

    A third class PTCL service all over the bahria town, consumer does not have a choice, ptcl know they dont have to do anything to improve their infrastructure as consumer is bound to pay them. Such a good society with most pathetic internet service.