PTA Drafts New Regulations to Ensure Pricing Flexibility & Protect Consumers Interests

Pakistan Telecommunication Authority (PTA) has drafted ‘Tariff for Telecommunication Services Regulations, 2022’ to ensure pricing flexibility and safeguard the interests of consumers.

Under the regulations, the tariffs will be at a level that provides a reasonable rate of return on investments, taking into account the cost of operations. There will be no cross-subsidization of other telecommunication services by telephone service providers.

These regulations will apply to all operators with respect to the level of tariffs that are charged for the provision of telecommunication services to consumers.

According to the draft regulations, non-SMP operators are free to set and revise their Tariff for Basic Telecommunication Services at any time and in any manner they like, provided that they inform PTA and consumers about their proposed tariff at least seven days prior to the proposed applicability of new tariff. And, the date of notification to the consumers commences after any modifications made by the Authority if required.

As per the draft, PTA may make modifications to or reject the proposed Tariff for Basic Telecommunication Services of non-SMP operators within seven days only where the tariff is considered to be burdensome. However, it would keep in view the following:

1. the Authority on its own, or at the request of the affected consumers may initiate an inquiry to determine whether any Tariff is burdensome

2. the burden of proof shall be on the licensee and they shall satisfy the Authority that the Tariff is not burdensome

3. the Authority, while making a decision, may make reference to the cost of Licensee, affordability of Consumers, Tariff of other Licensee in similar circumstances, economic viability, or any other factor deemed appropriate by the Authority.

Moreover, the tariff will be considered to be burdensome if the profit to the licensee is abnormally higher than the reasonable rate of return taking into account the cost of operations; The Tariff is beyond the affordability level of average consumers.

PTA, on its own or at the request of affected parties, may amend licensee’s existing tariffs, if it becomes burdensome due to change in circumstances, after giving an opportunity of hearing to the concerned licensee.

SMP operators will submit their written proposals complete in all respects for setting or revising Tariff for Basic Telecommunication Services to PTA for approval at least 15 days before the intended launch of the proposed tariff. The proposal will be comprehensive, sufficiently detailed, and unambiguous, clearly mentioning any discount, validity period, or special conditions, duly supported with facts and figures including the cost of provision of service, tariff of other licensees, affordability level of consumers, etc. and such other information as the Authority may require from the SMP licensee.

PTA will review the proposal and convey its decision to the licensee within seven days of its receipt. The date of seven days notification to the consumers will commence only after the approval date by the Authority.

In case PTA requires any information from the licensee, the time period mentioned at sub-regulation (3) above will start from the receipt of desired information from the licensee. PTA may approve, amend or reject the proposal or may require additional information from the Licensee:

1. If the Authority determines that the proposal is in compliance with these Regulations, it shall approve the proposal

2. If the Authority deems it appropriate to amend the proposal to make it in line with these Regulations, it shall notify the approval of the proposal subject to certain amendments

3. If the Authority determines that the proposal is not in compliance with these Regulations, it shall refuse in writing by recording reason(s).

PTA may decline the proposal or make amendments to the proposed tariff if the proposed tariff is considered to be burdensome.

According to the draft, the tariff will be considered to be burdensome if:

1. It is expected to give profit to the licensee/operator, which is abnormally higher than the reasonable rate of return taking into account cost of operations;

2. The level of the proposed tariff is considerably beyond the affordability level of intended Consumers.

PTA, on its own or at the request of affected parties, may amend, revoke or suspend a licensee’s tariff, including the Authority’s earlier approved tariff, if it becomes burdensome due to change in circumstances, after giving an opportunity of hearing to the concerned licensee.

The Authority may set price/tariff ceilings and price/tariff floors for SMP and non-SMP operators for their basic telecommunication services. It may set price ceilings for national roaming services for SMP and non-SMP operators.

All licensees, who are required under the terms of their License to provide access to Emergency Services, will provide their consumers access to emergency services, without any charge. The licensees will offer resources for a limited period of time in any event of national disaster and/or calamity as per directions of the Authority.

The licensees are free to set and revise their tariff for Value Added Services at any time and in any manner, they like, provided that they shall inform the Authority and consumers about their Tariff at least seven days before the applicability of changed tariff, provided that the date of notification to the consumers shall commence after any modifications made by the Authority if required; the fixed-line/Mobile/wireless licensees will offer Premium Rate Services to consumers within the price ceilings notified by the Authority from time to time.

The licensee will upload the latest tariff for availing international roaming facility for each respective country as well as operator, on its website along with all other terms and conditions.

The licensees will not activate the automatic renewal of subscription [1] based packages upon the expiry of that package, without soliciting explicit consent of the consumer, provided that in case of auto recursive renewals, explicit consent, as well as steps for unsubscribing offer/bundle/package, will be intimated prior to first auto-renewal. The operators will send SMS free of cost to the consumer when he/she is approaching 50% of the limit of the package, then at 80% of the limit, and finally at 100% usage of the package, after which the services will be blocked to protect the customer from excessive use without knowing that his /her credit limit has reached 100%.

The licensee will clearly mention the method through which the subscriber/consumer can renew the package. The SMS intimating subscription expiry will include the rate of the service after the expiry of the package limit.

Source: Pro Pakistani

Recent Posts

Categories

Advertisement