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The recent successful raids on illegal telecom operators have brought into focus the menace of grey incoming international traffic termination, presently faced by the country. The unlicensed telecom operations severely affect government revenues and the business of licensed Long Distance International (LDI) and LL operators as the illegal traffic termination does not involve payment of termination charges and Access Promotion Contribution (APC).
Pakistan Telecommunication Authority (PTA) has recently unearthed a number of such places from where business of illegal call termination worth millions of rupees was being carried out.
Consequently culprits were arrested and legal proceedings have been initiated against them. PTA. as a watchdog of telecommunication services, has been entrusted to issue telecom licenses on one hand and to ensure provision of cheaper telecom services to consumers on the other.
The offences have been explicitly provided under section 31 of the Pakistan Telecommunication (Re-organisation) Act, 1996, which says 'whoever establishes, maintains or operates a telecommunication system or telecommunication service knowingly or having reason to believe that any telecommunication system or telecommunication service is being operated in contravention to the Act: dishonestly obtains any telecommunication service, with the intent to devoid payment of a charge applicable to the provision of that service: engaged in the operation of a public switched network otherwise than in the course of his duty; damages, removes, interferes or tampers with any telecommunication equipment; and who over conspires to commit or attempts to commit or aids or abets the commission of any off punishable under this Act shall be liable to same punishment", which is imprisonment and heavy fine or both.
Fulfilling its responsibilities aptly and promptly, PTA has already taken initiatives to address the issue of illegal call termination in the form of administrative actions in collaboration with PTCL and other related agencies. But administrative measures alone could not help overcome the problem since high economic incentives are available for this unlawful business.
The Authority has, therefore, decided to initiate other ways of culminating this crime, ie with the help of public and by reducing the call rates so that the impact of these joint efforts (administrative and economic) could bar the grey market activity.
PTA has paid considerable attention to control this menace and appropriate measures have been taken in this concern. Recently, PTA has asked all LDI operators of Pakistan to reduce the international settlement rates significantly to reduce the financial incentives available for the illegal traffic termination, and it would decrease inflow of grey traffic into Pakistan from other countries. The revised settlement rates shall be US $0.1350 per minute as compared to their existing level of US $0.1629 per minute.
Basically this business operates through getting connections of a licensed fixed or cellular operator and installing quantum switches which convert international calls into local ones, and resultantly, international calls appear as local calls on the CLI of any fixed or mobile telephone. National Security and Surveillance (NSS) Cell, established in PTCL, monitors grey trafficking and inform PTA if it finds any illegal international gateway being operated. It is estimated that PTCL is loosing as much as 1 billion minutes per year through these illegal gateways.
The individuals involved in this illegal business, apparently claim provision of cheap international calls, but actually they cause huge loss to the government by depriving its foreign exchange.
PTA has detected 16 illegal exchanges in last five months which were causing huge loses to the national exchequer. It was successful in apprehending such unscrupulous elements and has handed them over to the concerned agencies, and cases have been registered against the accused under the law. Meanwhile, PTA has also launched a campaign in the print media to rout out the illegal call termination business.
It has floated advertisements in the national press to create awareness among masses and requested them to inform PTA on its toll free number 0800-55055, if they have any information regarding this menace.
Chairman PTA Major General Shahzada Alam Malik (Retd), while explaining the role of PTA on this issue, said that "On Prime Minister's direction, PTA has intensified its endeavours to apprehend operators involved in Illegal Voice Termination business.
A separate Monitoring Cell is being established at PTA Headquarters with branches at Zonal Offices. PTA's recent efforts have resulted in unearthing 16 illegal exchanges during last 5 months and culprits were arrested and are now facing legal proceeding in the courts", he added.
According to Chairman PTA, out of 16 illegal exchanges, 8 were detected in Rawalpindi/Islamabad, 4 in Karachi, 3 in Lahore while one was seized in Peshawar with the help of FIA. The estimates made by the concerned authorities show that 10 illegal exchanges were liable to cause around Rs 100 million loss to national kitty. The loss estimations of other exchanges are under process. Illegal Call Termination business is being operated through numbers of different fixed and cellular mobile numbers.
To combat this evil, the consumers and citizens can help PTA by providing any information on this issue. If PTA receives a complaint that an illegal telecommunication activity is being done at a particular place, first it would evaluate the complaint and determine whether the complaint is regarding an offence or not and once illegal trading is established PTA would start proceedings under sections 31 and 32 of the Act.
It is important that PTA could only stop this business with the apposite help of all licensed operators. The operators should also vigilantly monitor the abnormal flow of traffic on particular numbers especially in odd hours and they should inform PTA immediately for further proceedings.
It is a shared responsibility of all stakeholders to join hands against this offence to prevent losses being met by Government of Pakistan due to this illegal business. This co-operation will not only help PTA to chase such deceitful elements but will also protect the lawful interests of all telecom operators by offering them extended opportunities for their business.

Copyright Business Recorder, 2005

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