MoIT, PTA increase call rates to Pakistan

[EagleEyes]

* Proposal intact despite strict warning from CCP

* Also propose fixation of termination rates on incoming overseas calls to Pakistan from October 1

Staff Report

ISLAMABAD: Despite strict warning from super regulator the Competition Commission of Pakistan (CCP), the Ministry of Information Technology and Pakistan Telecommunication Authority (PTA) have proposed establishment of International Clearing House (ICH) and fixation of termination rates on incoming overseas calls to Pakistan from October 1, 2012.

Keeping in view the proposed plan, various overseas Pakistanis have approached and shared their serious concern with the CCP stating that the hard working overseas Pakistanis who call their loved ones in Pakistan will now find it extremely expensive to call Pakistan and the remittance to Pakistan will also reduce.

Apprehensions have been expressed that the economic activity will suffer as overseas companies will be discouraged to do business with Pakistan. The worry is that if establishment of ICH and the fixed termination rates on incoming overseas calls to Pakistan is given effect as proposed by the Ministry of Information Technology and PTA from October 1, 2012 it will become very expensive in comparison to the neighbouring countries.

CCP has also learnt that international companies have expressed their concerns regarding these proposed changes and the impact on their businesses in Pakistan. These companies are requesting the Ministry of Information Technology and the PTA to consider delaying any implementation until the trade implications [vis-à-vis Pakistan’s international obligation under General Agreement on Trade and Services (GATS)] in this regard have been discussed further.

The CCP had issued a policy note on August 28 to the Ministry of Information Technology and PTA recommending the withdrawal of the directive issued on August 13, 2012 by the Ministry of Information Technology proposing establishment of ICH exchange for international incoming calls for long distance international, fixed-line local loops, wireless local loops and mobile operators (proposed ICH arrangement).

In its policy note, CCP had also advised Ministry of Information Technology and PTA that any such proposed arrangement or agreement if entered into, is not tenable in terms of Section 4 of the Competition Act, 2010.

It had also been observed in the policy note by CCP that in terms of Para 3(d) of the Directive, the representatives of PTA and Ministry of Information Technology on board as observers of proposed ICH arrangement, in itself curtails the free market commercial decision making of the LDI operators and perhaps undermines the regulatory powers of PTA.

The CCP had noted in its policy note that a substantial advantage will be available to the existing LDI operators due to the proposed ICH arrangement. The incumbent LDI operators will be in a position to exploit the said arrangement through a cost advantage over potential new entrants.

CCP in its policy note had concludes that under the directive and proposed ICH arrangement price fixation and sharing of market (quota allocation) are promoted. Such practices like price fixation and quota allocation are considered per se illegal being the most pernicious anticompetitive conducts. Competition regime is all about applying competition policy and principles of law to make undertakings compete vigorously with each other. This fair business rivalry ensured through the competition rules brings efficiency, increased productivity, creates a wider choice for consumers and helps reduce prices and improve quality. It also plays important role in weeding out inefficient undertakings and relocation of output from less productive to more productive undertakings. It needs to be recognised that the larger benefit of competition is to promote and enhance economic efficiency.

Daily Times - Leading News Resource of Pakistan

 

[EagleEyes]

Higher call charges from UK

THE cost for overseas Pakistanis for calling Pakistani landlines and cellphones has increased by 300 to 800 per cent with effect from Oct 1, depending on the country and network.

This big increase is a result of the PTA’s decision to implement the controversial International Clearing House (ICH). This move, which is claimed to reduce illegal calls to Pakistan, has resulted in tremendous penalty for overseas Pakistanis for calling their families and friends in Pakistan.

Call charges from the UK to Pakistan have already been increased from three to six cents per minute to as high as up to 24 cents per minute. In comparison, charges for neighbouring countries India, China and Bangladesh are one penny to six pence per minute depending on the network.

According to media reports, monthly incoming international traffic to Pakistan is 1.5 billion minutes per month, which means overseas Pakistanis will have to pay extra $120-150 million to the PTA for calling their family back home.

During the current economic downturn in Pakistan, overseas Pakistanis will also be discouraged from sending remittances and investing in Pakistan.

It should be noted that overseas Pakistanis play a very important role in the country’s economy by remitting billions of dollars every year, and the PTA’s decision to penalise them should be taken back with immediate effect.

IRFAN HUSSAIN
London

Higher call charges from UK | DAWN.COM

 

[EagleEyes]

Expats to pay up to $150m a month to call Pakistan

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.

http://www.thenews.com.pk/Todays-News-2-135087-Expats-to-pay-up-to-$150m-a-month-to-call-Pakistan

 

[Rafael]

Skype, Viber and Whatsapp is the way to go!

 

[SHAMK9]

Higher call charges from UK

THE cost for overseas Pakistanis for calling Pakistani landlines and cellphones has increased by 300 to 800 per cent with effect from Oct 1, depending on the country and network.

This big increase is a result of the PTA’s decision to implement the controversial International Clearing House (ICH). This move, which is claimed to reduce illegal calls to Pakistan, has resulted in tremendous penalty for overseas Pakistanis for calling their families and friends in Pakistan.

Call charges from the UK to Pakistan have already been increased from three to six cents per minute to as high as up to 24 cents per minute. In comparison, charges for neighbouring countries India, China and Bangladesh are one penny to six pence per minute depending on the network.

According to media reports, monthly incoming international traffic to Pakistan is 1.5 billion minutes per month, which means overseas Pakistanis will have to pay extra $120-150 million to the PTA for calling their family back home.

During the current economic downturn in Pakistan, overseas Pakistanis will also be discouraged from sending remittances and investing in Pakistan.

It should be noted that overseas Pakistanis play a very important role in the country’s economy by remitting billions of dollars every year, and the PTA’s decision to penalise them should be taken back with immediate effect.

IRFAN HUSSAIN
London

Higher call charges from UK | DAWN.COM

No more 5 hours + jaslas from altaf hussain anymore i guess

 

[somebozo]

Grey traffic is a serious risk to national security.

 

[EagleEyes]

Grey traffic has the money to spend. The regular awam doesn't.

This move is nothing but a way to earn more cash.

 

[somebozo]

Grey traffic has the money to spend. The regular awam doesn't.

This move is nothing but a way to earn more cash.

Zardari sucking blood out of Pakistani awam!

 

[sansan]

Grey traffic has the money to spend. The regular awam doesn't.

This move is nothing but a way to earn more cash.

Since the year 2002 to 2004 overseas Pakistanis were paying more then the current calls rates, but there was no objection and now crying, why?
If we call from Pakistan to India or Saudi Arabia, UAE or made call from Saudi Arabia, UAE to Pakistan we have to pay enough amount, despite call rates were very low in Pakistan, but no body highlighted these facts.
All LDIs operator were not paying there appropriate taxes since last four years which is about 40 million rupees to government. Therefore calls rates were very low. For Now government strictly asking all LDIs operators to pay taxes and therefore formed ICH. At that time where these overseas Pakistani were they sleeping.
8-10 cents are nothing for overseas Pakistanis if they are sincere with Pakistan. Rates should increase more so that government may be benefited, and foreign exchange comes to the country.
and Why CCP is not taking actions against other issues for inflation, only they are crying on calls rates, rest things are fine in Pakistan. Millions of peoples living below the poverty line and loosing purchasing power, there is no role of CCP there?

 

[My-Analogous]

Since the year 2002 to 2004 overseas Pakistanis were paying more then the current calls rates, but there was no objection and now crying, why?
If we call from Pakistan to India or Saudi Arabia, UAE or made call from Saudi Arabia, UAE to Pakistan we have to pay enough amount, despite call rates were very low in Pakistan, but no body highlighted these facts.
All LDIs operator were not paying there appropriate taxes since last four years which is about 40 million rupees to government. Therefore calls rates were very low. For Now government strictly asking all LDIs operators to pay taxes and therefore formed ICH. At that time where these overseas Pakistani were they sleeping.
8-10 cents are nothing for overseas Pakistanis if they are sincere with Pakistan. Rates should increase more so that government may be benefited, and foreign exchange comes to the country.
and Why CCP is not taking actions against other issues for inflation, only they are crying on calls rates, rest things are fine in Pakistan. Millions of peoples living below the poverty line and loosing purchasing power, there is no role of CCP there?

Thank you for your mindless comment. Instead to provide more facilities to peoples government try her level best to suck people blood and take every single drop to fulfill there notorious life style and their banks

 

[VCheng]

Thank you for your mindless comment. Instead to provide more facilities to peoples government try her level best to suck people blood and take every single drop to fulfill there notorious life style and their banks

And it is doing a great job of doing just that.

 

[airmarshal]

No more 5 hours + jaslas from altaf hussain anymore i guess

Of course not!That will be exempt. In such time of gloom, it provides such a comic relief.

Also if Altaf Hussain is discouraged from using it, he will issue and ultimatum and the drama baazi will continue unless his calls are exempted.

Since the year 2002 to 2004 overseas Pakistanis were paying more then the current calls rates, but there was no objection and now crying, why?
If we call from Pakistan to India or Saudi Arabia, UAE or made call from Saudi Arabia, UAE to Pakistan we have to pay enough amount, despite call rates were very low in Pakistan, but no body highlighted these facts.
All LDIs operator were not paying there appropriate taxes since last four years which is about 40 million rupees to government. Therefore calls rates were very low. For Now government strictly asking all LDIs operators to pay taxes and therefore formed ICH. At that time where these overseas Pakistani were they sleeping.
8-10 cents are nothing for overseas Pakistanis if they are sincere with Pakistan. Rates should increase more so that government may be benefited, and foreign exchange comes to the country.
and Why CCP is not taking actions against other issues for inflation, only they are crying on calls rates, rest things are fine in Pakistan. Millions of peoples living below the poverty line and loosing purchasing power, there is no role of CCP there?

Who re you? Some toady of this corrupt and thuggish government. Please introduce yourself.

 

[Safriz]

outbound traffic will increase..as now most people abroad ask relatives in Pakistan to call them..
as a result PTA will end up paying money to foreign telecom instead of being paid...
stupid step.

 

[EagleEyes]

outbound traffic will increase..as now most people abroad ask relatives in Pakistan to call them..
as a result PTA will end up paying money to foreign telecom instead of being paid...
stupid step.

Funny ****!

Sansan, sounds like a PTA/MOIT worker.

This move is to increase $$ for PTA pockets and not looking at the larger picture of benefiting Pakistan and its economy. Overseas Pakistanis will be unable to effectively manage their business and expand them, sending $$$ and providing work to the Pakistanis at home.

Grey traffic and all that is utter bullshit, what makes you think that grey traffic doesn't have the money to dish out through bhatta, stealing phones and other illegal works?

 

[Hyde]

Although I do not/rarely call to Pakistan (mostly receives calls from Pakistan or use skype) but it is a good step keeping in mind that the PTA is going to earn some extra dollars which are indirectly going to increase the profits and generate revenue for the government.

I don't think most overseas Pakistanis will mind that, espacially those who lives in Europe would certainly be happy to pay any rate. I remember when I moved to UK, the call rate to Pakistan was around 37p per minute from the PCO and you used to get about 15 minutes from £5 calling card which later dropped to 1p per minute. So phone calls are very cheap already and would only hurt those who likes to call for hours n hours.

I can't hear phone for more than 2-5 minutes so I have no problem with this development