Safriz
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LAHORE: Overseas Pakistanis will have to pay around $120-150
million per month to talk to their near and dear ones, as an
International Clearing House (ICH) regime is going to be operative
in the country from today (October1, 2012). The call rates for overseas Pakistanis have increased from 10-10.5 cents
to 10-12 cents per minute under the new regime, implemented by the
Pakistan Telecommunication Authority (PTA). The Competition
Commission of Pakistan (CCP) has objected to the move, saying it can
create monopoly of any one operator and increase grey traffic in
Pakistan. According to the telecommunication industry sources, the rates of the
Long Distance International (LDI) operators have increased the cost of
overseas calls and new revised rates would be implemented from Oct
1, 2012, as instructed by the PTA. A PTA official said the basic objective behind establishing the ICH was
to control grey traffic.It would not increase grey traffic, and different
telecom operators would get their quota as per their existing share in
the ICH whose infrastructure has been provided by the telecom
industry, he added. According to available data, monthly international calls traffic to
Pakistan is 1.5 billion minutes and the increase in rates by 10-12 cents
per minute is an additional burden on the overseas Pakistanis, who
will have to pay around $120-150 million monthly. According to a telecom industry official, at a time when the
international call rates for overseas Pakistanis were 5 to 6 cents per
minute and monthly call traffic was around 400 million minutes, a
number of grey telephone exchanges were traced and busted by the
PTA. Following decline in international calling rates to 1.5 cent per
minute, the legal traffic has increased to 1.5 billion minutes per month. He feared that legal international calls would again drop, as the world
is competing around 1 to 2 cents per minute, but Pakistan has
increased it to 10 to 12 cents per minute. Meanwhile, a spokesperson for the CCP said various overseas Pakistanis
have expressed their concerns over increase in rates. They complained
that now they would have to pay more to talk to their near and dear
ones and the remittance to Pakistan will also decrease. Apprehensions have been expressed that economic activity will suffer
as overseas companies will be discouraged to do business with
Pakistan. The worry is that if establishment of International Clearing
House (ICH) and the rates fixed for termination of incoming overseas
calls to Pakistan are given effect as proposed by the Ministry of
Information Technology (MoIT) and Pakistan Telecommunication Authority (PTA), it will become very expensive in Pakistan in
comparison with the neighbouring countries. Haroon Piracha, former member National Assembly and corporate
member Islamabad Stock Exchange, said as technology keeps on
changing, conventional means of raising revenue appears to be a
short-term gain. While a higher tariff structure might seem good for
one year, web-based communication solutions like VIBER available on
cell-phones will make conventional means of raising revenue and stifling competition redundant. Dr Huma Bukhari, the chairperson of Consumer Association of Pakistan,
said the ICH was an issue of consumers concern and the CCP should be
fully supported in its efforts to protect consumers interest. Kaukab Iqbal, president of the Consumer Association of Pakistan,
warned that if the decision to establish the ICH was not shelved by the
PTA, the consumer groups would take the matter to a court of law.
million per month to talk to their near and dear ones, as an
International Clearing House (ICH) regime is going to be operative
in the country from today (October1, 2012). The call rates for overseas Pakistanis have increased from 10-10.5 cents
to 10-12 cents per minute under the new regime, implemented by the
Pakistan Telecommunication Authority (PTA). The Competition
Commission of Pakistan (CCP) has objected to the move, saying it can
create monopoly of any one operator and increase grey traffic in
Pakistan. According to the telecommunication industry sources, the rates of the
Long Distance International (LDI) operators have increased the cost of
overseas calls and new revised rates would be implemented from Oct
1, 2012, as instructed by the PTA. A PTA official said the basic objective behind establishing the ICH was
to control grey traffic.It would not increase grey traffic, and different
telecom operators would get their quota as per their existing share in
the ICH whose infrastructure has been provided by the telecom
industry, he added. According to available data, monthly international calls traffic to
Pakistan is 1.5 billion minutes and the increase in rates by 10-12 cents
per minute is an additional burden on the overseas Pakistanis, who
will have to pay around $120-150 million monthly. According to a telecom industry official, at a time when the
international call rates for overseas Pakistanis were 5 to 6 cents per
minute and monthly call traffic was around 400 million minutes, a
number of grey telephone exchanges were traced and busted by the
PTA. Following decline in international calling rates to 1.5 cent per
minute, the legal traffic has increased to 1.5 billion minutes per month. He feared that legal international calls would again drop, as the world
is competing around 1 to 2 cents per minute, but Pakistan has
increased it to 10 to 12 cents per minute. Meanwhile, a spokesperson for the CCP said various overseas Pakistanis
have expressed their concerns over increase in rates. They complained
that now they would have to pay more to talk to their near and dear
ones and the remittance to Pakistan will also decrease. Apprehensions have been expressed that economic activity will suffer
as overseas companies will be discouraged to do business with
Pakistan. The worry is that if establishment of International Clearing
House (ICH) and the rates fixed for termination of incoming overseas
calls to Pakistan are given effect as proposed by the Ministry of
Information Technology (MoIT) and Pakistan Telecommunication Authority (PTA), it will become very expensive in Pakistan in
comparison with the neighbouring countries. Haroon Piracha, former member National Assembly and corporate
member Islamabad Stock Exchange, said as technology keeps on
changing, conventional means of raising revenue appears to be a
short-term gain. While a higher tariff structure might seem good for
one year, web-based communication solutions like VIBER available on
cell-phones will make conventional means of raising revenue and stifling competition redundant. Dr Huma Bukhari, the chairperson of Consumer Association of Pakistan,
said the ICH was an issue of consumers concern and the CCP should be
fully supported in its efforts to protect consumers interest. Kaukab Iqbal, president of the Consumer Association of Pakistan,
warned that if the decision to establish the ICH was not shelved by the
PTA, the consumer groups would take the matter to a court of law.
