The Pakistan Telecommunications Authority (PTA) has prepared ‘Tariff for Telecommunications Services, 2022’ to ensure price flexibility and protect consumer interests.
According to the regulations, the rates will be at a level that provides a reasonable return on investment, taking into account the operational costs. There is no cross-subsidisation of other telecommunications services by telephony providers.
This arrangement will apply to all operators with regard to the level of the rates charged for the provision of telecommunications services to consumers.
Under the draft regulations, non-SMP operators are free to set and revise their tariff for basic telecommunications services at any time and in any way they wish, provided they inform PTA and consumers at least seven days prior to the proposed application of the new tariff. . And the date of notification to consumers starts after any changes made by the Authority if necessary.
Under the draft, PTA can change or reject the proposed tariff for basic telecommunications services from non-SMP operators within seven days, only if the tariff is considered onerous. However, it would keep an eye on the following:
- the Authority alone, or at the request of the consumers concerned, may conduct an investigation to determine whether a tariff is burdensome
- the burden of proof lies with the licensee and they must convince the Authority that the fee is not onerous
- the Authority may, in making a decision, refer to Licensee’s costs, affordability of Consumers, the Tariff of another Licensee in similar circumstances, economic viability or any other factor deemed appropriate by the Authority.
In addition, if the licensee’s profits are abnormally higher than the reasonable return, the rate will be considered onerous, taking into account operating costs; The rate is above the affordability level of the average consumer.
PTA may, alone or at the request of the parties involved, change the licensee’s existing rates, if this becomes onerous due to changed circumstances, after giving the licensee concerned the opportunity to hear.
SMP operators will submit their written proposals for the determination or revision of the Tariff for Basic Telecommunications Services to PTA for approval at least 15 days before the intended introduction of the proposed tariff. The proposal shall be comprehensive, sufficiently detailed and unambiguous, clearly stating any discounts, validity periods or special conditions, duly substantiated with facts and figures, including cost of service, tariff of other licensees, affordability level of consumers, etc. and all other information that the Authority may require from the SMP licensee.
PTA will assess the proposal and communicate its decision to the MAH within seven days of receipt. The seven-day notification date to consumers will only take effect after the approval date by the Authority.
In the event that PTA requires information from the licensee, the term mentioned in sub-rule (3) above starts from the receipt of the requested information from the licensee. PTA may approve, amend or reject the proposal or may require additional information from Licensee:
- If the Authority determines that the proposal is in accordance with these Regulations, it shall approve the proposal
- If the Authority considers it appropriate to amend the proposal in order to bring it in line with these Regulations, it shall notify the approval of the proposal, subject to certain amendments
- If the Board determines that the proposal is not in accordance with these regulations, it will reject it in writing, stating the reason(s).
PTA may reject the proposal or make changes to the proposed rate if the proposed rate is deemed onerous.
According to the draft, the rate will be considered onerous if:
- It is expected to generate a profit for the licensee/operator, which is abnormally higher than the reasonable return, taking into account the operational costs;
- The level of the proposed rate is significantly above the affordability level of the targeted Consumers.
PTA may, alone or at the request of interested parties, change, withdraw or suspend a licensee’s fee, including the Authority’s previously approved fee, if this becomes burdensome due to changed circumstances, after giving the licensee concerned the opportunity to have asked to hear .
The Authority may set price/rate caps and price/rate caps for SMP and non-SMP operators for their basic telecommunications services. It can set price caps for national roaming services for SMP and non-SMP operators.
All licensees, who are required by the terms of their license to provide access to emergency services, will provide their consumers with access to emergency services free of charge. The license holders will make resources available for a limited period in the event of a national disaster and/or calamity on the instructions of the Authority.
Licensees are free to set and revise their rate for Value Added Services at any time and in any manner, provided they notify the Authority and consumers of their pricing at least seven days before the amended rate becomes applicable. Fee, subject to the date of notification to consumers starting after any changes made by the Authority if necessary; the fixed/mobile/wireless licensees will offer Premium Rate Services to consumers within the price caps communicated by the Authority from time to time.
The licensee will upload the most recent tariff for the use of international roaming facilities for each country and operator on its website, together with all other terms and conditions.
The licensees do not activate the automatic renewal of the subscription [1] based packages after the expiration of that package, without asking the consumer’s express consent, provided that in the case of automatic recursive renewals, express consent, as well as steps for unsubscribing from offer/bundle/package, prior to the first automatic extension are indicated. The operators will send free SMS to the consumer when he/she approaches 50% of the package limit, then 80% of the limit and finally 100% use of the package, after which the services will be stopped. blocked to protect the customer from overuse without knowing that his/her credit limit has reached 100%.
The licensee clearly states how the subscriber/consumer can renew the package. When the SMS subscription expires, the rate of the service is included after the package limit has expired.
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