PTA publishes draft tariff regulations

17 Feb 2021

The Pakistan Telecommunication Authority (PTA) has published draft regulations on tariff setting, which look to amend the watchdog’s capacity to regulate pricing for services. The draft rules require operators with significant market power (SMP) to submit written proposals to the PTA, which may approve, amend or reject the proposal if the tariff is considered anti-competitive or ’burdensome’. The regulator considers tariffs burdensome if they provide profits for the licensee that were ‘abnormally high’, or the tariff is considered beyond the affordability of the intended consumers. A similar review and approval system would also be established for non-SMP providers, albeit with a shorter timeframe of seven days – rather than the 15 required from SMP operators – and with a focus on whether the pricing is considered burdensome, although the PTA may amend the tariff if it becomes anti-competitive or burdensome at a later date. The regulations also permit the PTA to set price ceilings and floors for basic services. Alongside empowering the PTA to more closely monitor and regulate tariff pricing, the draft regulations also tie-in to consumer protection rules and regulate potentially misleading information in advertising. Stakeholders have until 24 February 2021 to submit feedback on the draft regulations.

Pakistan, Pakistan Telecommunication Authority (PTA)