PTA orders reduction in MTR

29 Nov 2021

The Pakistan Telecommunication Authority (PTA) has ordered a reduction in the mobile termination rate (MTR) from its current level of PKR0.7 (USD0.00396) per minute to PKR0.3 (USD0.00170) from 1 July 2023. Under the new glide path, the MTR will be reduced to PKR0.5 from 1 January 2022 and PKR0.4 from 1 July 2022 before reaching PKR0.3 in mid-2023. The decision followed a consultation on the matter in July this year, with a benchmarking study conducted by the authority having found that MTRs in Pakistan were higher than other countries in the region. The PTA noted that the majority of the responses it received to the proposed MTR reduction were positive, though mobile market leaders Jazz and Telenor Pakistan were critical of the plans. Regarding the move, the regulator explained in a statement: ‘PTA is of the view that lowering of MTR would allow more competitive and innovative offerings such as free minute off-net bundles for the consumers. It is expected to make market healthier and beneficial in terms of lower tariffs for making off-net calls. It would also benefit smaller operators in terms of reduced net payments to be made to the bigger operators.’