Data Class Value-Added Services: Proposed revision of licensing template opposed

ISLAMABAD: The Wireless & Internet Service Providers Association of Pakistan (WISPAP.ORG) has expressed serious concerns over the proposed revision of licensing template for Data Class Value Added Services (CVAS) by Pakistan Telecommunication Authority (PTA) while saying it may result in monopolistic practices.

The PTA has planned to revise the licensing template for CVAS envisaging to address the disparities and simplify entry-level license for the provision of internet services in the country and increasing broadband proliferation.

The authority stated that over two decades, significant changes have unfolded in the market dynamics and technological landscape, reshaping the environment profoundly. These advancements have rendered the existing scope of the Data CVAS License not to be corresponding to the evolved technological shifts. Therefore, a revision in the Data CVAS License for the provision of internet services in the country is imminent.

However, WISPAP.ORG in response to PTA, has stated that they thoroughly reviewed the consultation paper regarding the proposed changes to the licensing CVAS licence as published by the PTA’s website.

It stated, “We understand the objectives outlined in the consultation paper, particularly the aim to address disparities in the current licensing framework and promote broadband proliferation in the country, however, we have some concerns and suggestions regarding the proposed changes”.

The association stated that they are concerned that the proposed changes may not effectively serve the intended purpose of promoting internet proliferation, especially in deprived areas of Pakistan. Instead, it appears that the changes may primarily benefit existing cable TV operators who have already obtained licences from the PEMRA. This could perpetuate the stagnation in the industry due to the monopoly and ill practices held by certain cable operators and regulatory challenges.

Further, the requirement for CVAS operators to enter agreements with local loop operators for infrastructure access creates a risk of monopolistic practices and undue pressure from these operators on CVAS operators. This can hinder the operation and development of networks properly. “We recommend reassessing this requirement to ensure fair competition and encourage independent infrastructure development by CVAS operators”, the WISPAP.ORG, added.

The association further stated that all CVAS operators should have the autonomy to deploy their own fiber optic networks without being dependent on agreements with local loop operators orcable TV network operators. This will encourage innovation, competition, and investment in network infrastructure, ultimately benefiting consumers and driving broadband adoption.

WISPAP.ORG recommended that cable TV operators should be barred from providing internet services to prevent anti-competitive behaviour, ill practices and foster a level playing field for both new entrants and existing internet service providers. Allowing cable TV operators to offer internet services could hinder market development and job creation.

The current ill-practices employed by cable operators, such as the division of areas, and resorting to violence, including the use of goons, fighting, and intimidation tactics to secure customer connections, are deeply troubling. Such behaviour not only poses serious safety risks but also undermines the integrity of the industry. The proposed changes should include measures to address and eradicate these illegal and unethical practices, it added.

The association proposed that the area of operations for licensees should be defined by government divisions (provincial divisions), such as Rawalpindi Division or Lahore Division, with an additional radius of 20 kilometres from division boundaries. This approach will ensure that businesses have a sufficiently large market to operate efficiently and effectively.

Copyright Business Recorder, 2024