The Pakistan Telecommunication Authority (PTA) has drafted Tariff for Telecommunication Service Regulations, 2022 to ensure pricing flexibility while safeguarding and protecting the interests of the consumers. It provides a reasonable rate of return on investments taking into account the cost of operations and no cross-subsidization of other telecommunication services by telephone service providers.
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Tariff for Telecommunication Service Regulations
According to the draft of Tariff for Telecommunication Service regulations, non-SMP operators are free to set and revise their Tariff for Basic Telecommunication Services at any time and in any manner, they like, provided they shall inform, the Authority and consumers about their proposed tariff at least seven days prior to proposed applicability of new tariff. As per the draft, PTA may make modifications to or reject the proposed Tariff for Basic Telecommunication Services of non-SMP operators within seven days. However, the following would be kept in view:
(a) the Authority on its own, or at the request of the affected Consumers may initiate an inquiry to determine whether any tariff is burdensome;
(b) the burden of proof shall be on the Licensee and they shall satisfy the Authority that the tariff is not burdensome;
(c) the Authority, while making a decision, may make reference to the cost of the Licensee, affordability of consumers, the tariff of other licensees in similar circumstances, economic viability, or any other factor deemed appropriate by the Authority.
SMP operators will submit their complete written proposals for setting or revising the Tariff for Basic Telecommunication Services to PTA for approval at least 15 days before the intended launch of the proposed tariff. The proposal should be comprehensive, sufficiently detailed, and unambiguous, clearly mentioning any discount, validity period, or special conditions, duly supported with facts and figures including the cost of provision of service, tariff of other licensees, affordability level of consumers, etc.
Additional requirements for the license
In case PTA requires any information from the licensee, the mentioned time period will start from the receipt of desired information from the licensee. PTA may approve, amend or reject the proposal or may require additional information from the Licensee:
1. If the Authority determines that the proposal is in compliance with these Regulations, it shall approve the proposal
2. If the Authority deems it appropriate to amend the proposal to make it in line with these Regulations, it shall notify the approval of the proposal subject to certain amendments
3. If the Authority determines that the proposal is not in compliance with these Regulations, it shall refuse in writing by recording reason(s).
PTA holds the right to decline the proposal or make amendments to the proposed tariff if the proposed tariff is considered to be burdensome. As per the draft, the tariff is considered burdensome, if:
1. It is expected to give profit to the licensee/operator, which is abnormally higher than the reasonable rate of return taking into account cost of operations;
2. The level of the proposed tariff is considerably beyond the affordability level of intended Consumers
Source: Pro Pakistani