Pakistan Telecommunication Authority (PTA) has prepared a “Tariff for Cellular Mobile Telecommunication Services Regulations, 2024” aimed at ensuring pricing flexibility, safeguarding consumer interests, and preventing the cross-subsidization of other telecommunication services.
These regulations shall apply to all Cellular Mobile Licensees for setting the level of retail tariffs being charged against licensed services to consumers.
All Cellular Mobile Licensees are required to ensure adherence to the following principles while setting the level of tariff of cellular mobile telecommunication services:
- Pricing flexibility while safeguarding and protecting the interests of consumers;
- Tariffs shall be set at a level that provides a reasonable rate of return on investments considering the cost of operations;
- No cross-subsidization of other telecommunication services.
Procedures for Tariff Approval
The approval procedures for tariffs vary between Significant Market Power (SMP) licensees and non-SMP licensees:
Non-SMP Licensees: They can set and revise their tariffs independently, provided they notify the PTA and consumers at least seven days before any changes take effect. However, the PTA reserves the right to modify these tariffs if they adversely affect consumer interests.
SMP Licensees: These licensees must submit detailed proposals, including the criteria for establishing tariffs, to the PTA at least fifteen days before the intended launch. The proposals must include comprehensive cost data and calculations to ensure the tariffs do not lead to predatory or excessive pricing.
Directory Inquiry and Assistance Services
The regulations stipulate that no charges should be imposed for operator assistance or directory inquiry services unless approved by the PTA. Licensees must submit requests for such tariffs at least fifteen days in advance. Additionally, licensees are required to establish a dedicated, free-of-cost helpline for consumers to access assistance via Interactive Voice Response (IVR).
Directory Inquiry and Assistance Services
The regulations stipulate that no charges should be imposed for operator assistance or directory inquiry services unless approved by the PTA. Licensees must submit requests for such tariffs at least fifteen days in advance. Additionally, licensees are required to establish a dedicated, free-of-cost helpline for consumers to access assistance via Interactive Voice Response (IVR).
Detailed Tariff Proposals
Licensees must submit tariff proposals to the PTA’s Director General (Commercial Affairs) through letter, fax, or email. These proposals should be comprehensive, including:
- The basis for the proposed tariff and supporting evidence.
- Detailed cost data and calculations to prevent predatory pricing.
- Data on the margin or reasonable rate of return.
- For bundled tariffs, detailed cost data for each service is included in the bundle.
Tariffs will be deemed burdensome if they result in abnormally high profits, are higher than industry benchmarks or inflation, are beyond average consumer affordability, or any other factor determined by the PTA.
Regulation of Interconnection Charges
The PTA will regulate SMP licensees’ interconnection charges and wholesale tariffs, including the Mobile Termination Rate (MTR), based on Long Run Incremental Cost (LRIC) or other methodologies like international benchmarking.
Transparency and Consumer Information
Licensees must provide updated national and international roaming tariffs on their websites, including terms and conditions. Consumers must be informed of applicable roaming charges via SMS after selecting a licensee while abroad. Only services requested in writing by the consumer should be activated for international roaming, and consumers must not be charged beyond their security deposit.
Furthermore, automatic renewal of subscription-based packages is prohibited without explicit consumer consent. In cases of auto-recursive renewals, explicit consent and steps for unsubscribing must be communicated to the consumer before the first renewal.
These comprehensive regulations aim to create a balanced and fair telecommunication market in Pakistan, ensuring that consumers are protected while allowing licensees the flexibility to innovate and compete.
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