MoIT Irks CCP by Publishing Draft of its Own Competition Rules for Telecom Sector

Despite Competition Commission of Pakistan’s (CCP) sole mandate to regulate telecom sector on competition related issues, Ministry of Information Technology and Telecommunication has drafted its own ‘Pakistan Telecommunication Competition Rules, 2017’ to check anti-competitive behavior in the telecommunication sector, we have checked.

Not to mention, CCP had issued a Policy Note to the Ministry of Information Technology & Telecom (MoITT) recommending to review the Telecom Policy, 2015 in relation to the Competition Rules for the telecom sector as it is the sole jurisdiction of CCP under the Competition Act, 2010.

In its policy note, the CCP has raised two major issues:

  • What if rules, being framed by the MoIT for the telecom sector, create jurisdictional overlaps and conflicts between the legislative mandate of the CCP and PTA?
  • Can PTA impose ex-post behavioral remedies for competition law violations, which are already being enforced by the Commission under the Competition Act?

CCP had said that the Competition Act — under which CCP is governed — being an Act of Parliament takes precedence over the Rules being framed by MoIT, which is a subordinate legislation.

CCP, in its policy note, had said that empowering PTA to regulate competition related matters in the telecom sector will not only create redundant duplication of jurisdictions but also engender legal uncertainty for the telecom operators and consumers as well as wastage of state resources.

CCP — through its policy note — had invited MoIT to work in a collaborative manner, instead of creating a parallel jurisdiction.

Meanwhile, on the other hand, MoIT has drafted these new rules — called “Pakistan Telecommunication Competition Rules, 2017” — and has asked the general public to share their thoughts and proposals.

Draft copy of Telecommunication Competition Rules can be downloaded from here.

Here are highlights of the Telecom Competition Rules:

  • Telecom operator will not agree or arrange with another oeprator or person, where the agreement or arrangement prevents or lessens or is likely to prevent or lesson competition substantially in a market.
  • PTA will ensure that open and fair competition is facilitated and encouraged in relevant markets within the telecommunications sector.
  • PTA will regulate tariff or other terms and conditions for provisioning of any telecom service to safeguard the consumers or end-users from any anti-competitive, burdensome, unreasonable or unfair practices.
  • Operators can enter into agreement or arrangement (for price fixation) after PTA’s approvals.
  • No operator will not be allowed to defame competition operator through ADs
  • No operator will not be allowed to activate service without consumers’ consent
  • Operators will have to reveal the original price of services (packages)
  • Operators will not be allowed to engage in cross-subsidization



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