Indian Broadband Policy and Regulatory Resources

PAKISTAN

Telecommunication Regulatory Environment results for Pakistan

Pakistan-1   As a consequence of the transparent telecom policy and regulatory processes in Pakistan, the ICT industry has witnessed liberalization, greater private sector participation and enhanced competition in new technologies, lower prices and better customer services. The graph below gives the results of the 2010/2011 Pakistan, and the details of the individual components of the TRE have been included in the corresponding sections. The complete TRE report can be accessed  here.

  • Anti Competitive Practices

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The TRE survey results indicate a gradual improvement in the regulation of anti-competitive practices in the telecom industry across all sectors of the industry in Pakistan. The Competition Commission of Pakistan and PTA have been actively engaged in promoting competition in the telecom industry and checking anti-competitive practices which curtail competition and restrain consumer welfare. The Commission enforced the Competition Act, 2010 prohibiting certain anti-competitive business practices. In March 2011, the Commission looked into a cross-border merger application for the acquisition of Wind Telecom by Vimpelcom Limited. A No Objection Certificate was issued by the Commission for the said merger based on the parties’ commitment to alleviate competition concerns. The Commission has also taken action against Wateen Telecom Limited and Defense Housing Authority for entering into an agreement which has the effect of reducing competition in the relevant market. Based on the data available for December 2010, HHI for Broadband was 3289 which indicates high concentration in the market.

  • Interconnection

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The TRE survey results for interconnection overall (aggregating across fixed, mobile and broadband) for Pakistan has be increasing since 2006 to 2010. It is important to note though, that the dimension remained the same for the mobile sector while increasing for both fixed and broadband sectors.

  • Market Entry

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Pakistan has a high score for Broadband Market Entry and has increased from 3.2 in 2007-2008 to 3.6 in 2010. Even though it is an expensive (USD 291 million based on auction value) process. This could be due to the fact that licensing conditions give certainty and the payment of fee guarantees license renewal. There are also no limitations to foreign ownership, in 2009 – 2010 there was Foreign Direct Investment (FDI) of USD 374 million (17% of Pakistan’s FDI).

  • Quality of Service

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A comparison of the survey results for 2008 and 2010 indicates an improvement in quality of services. PTA is working towards finalizing Cellular Mobile Network QoS Regulations. Wi-tribe Pakistan successfully ranked number one in both the ‘Technology Neutral’ and ‘Technology-wise’ categories for highest QoS, despite being the youngest broadband company. More details can be found here LIRNEasia’s research on QoS of Broadband can be found here

  • Scarce Resources

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Over the years since 2006, the TRE outcomes for Access to Scarce Resources in Pakistan has been declining in the mobile sector while the TRE scores for the same dimension for fixed and broadband sectors have marginally increased in 2010.

  • Tariff Regulation

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The TRE scores for tariff regulation depict an increase from 2008 to 2010 in all three telecom sub-sectors. The PTA carried out monitoring of billings of all cellular operators to ensure accuracy of charged rates with advertized rates. The results of the computerized experiment also showed that operators were giving benefit to their subscribers in most of the cases by charging lesser tariff in comparison to their advertised tariffs.

  • Universal Services Obligation

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The TRE survey results for Universal Service Obligation reflect an improvement from 2 in 2007-2008 to 3.2 in 2010. Efforts have been made by the Government of Pakistan to expand Universal Service Fund (USF) projects in remote areas of the country. As a consequence, a number of projects have been completed by the USF Fund in Sindh and Balochistan, including optical fibre projects worth PKR 4.5 billion and twelve broadband projects costing PKR 6.35 billion. As a result, broadband proliferation increased manifold, placing Pakistan amongst the top ten countries in the world in terms of growth.

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Source: Pakistan