Non-SMP operators are free to set, revise tariff for basic telecom services

ISLAMABAD: The Pakistan Telecommunication Authority (PTA) has drafted Tariff for Telecommunication Service Regulations, 2022 to ensure pricing flexibility, while safeguarding and protecting the interests of the consumers, that tariffs shall be at a level, which provides a reasonable rate of return on investments taking into account the cost of operations and that no cross-subsidisation of other telecommunication services by telephone service providers.

These regulations shall apply to all operators with respect to the level of tariffs, which are charged for the provision of telecommunication service 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 they shall inform, the Authority and consumers about their proposed tariff at least seven days prior to proposed applicability of new tariff: Provided that the date of notification to the consumers shall commence after any modifications made by the Authority, if required.

The Authority 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.

Provided that: (a) the Authority on its own, or at the request of the affected Consumers may initiate enquiry to determine whether any tariff is burdensome; (b) the burden of proof shall be on the Licensee and they shall satisfy the Authority that the tariff is not burdensome; (c) the Authority, while making decision, may make reference to cost of Licensee, affordability of consumers, tariff of other licensee in similar circumstances, economic viability, or any other factor deemed appropriate by the Authority. Tariff shall be considered to be burdensome if: (a) Profit to the licensee is abnormally higher than the reasonable rate of return taking into account cost of operations; The tariff is beyond the affordability level of average consumers.

The Authority 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 opportunity of hearing to the concerned licensee.

The SMP operators shall submit their written proposals complete in all respects for setting or revising Tariff for Basic Telecommunication Services to the Authority for approval at least 15 days before intended launch of the proposed Tariff.

The proposal shall be comprehensive, sufficiently detailed and unambiguous, clearly mentioning any discount, validity period or special conditions, duly supported with facts and figures including 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.

The Authority shall review the proposal and convey its decision to the Licensee within seven (7) days of its receipt. The date of seven days notification to the consumers shall commence only after the approval date by the Authority. In case the Authority requires any information from the Licensee, the time period mentioned at sub-regulation (3) above shall start from the receipt of desired information from the Licensee.

The Authority may approve, amend or reject the proposal or may require additional information from the licensee: (a) If the Authority determines that the proposal is in compliance with these Regulations, it shall approve the proposal; (b) If the Authority deems it appropriate to amend the proposal to make it in line with these Regulations, it shall notify the approval of proposal subject to certain amendments. (c) If the Authority determines that the proposal is not in compliance with these Regulations, it shall refuse in writing by recording reason(s); The Authority may decline the proposal or make amendments to the proposed Tariff if the proposed Tariff is considered to be burdensome.

Tariff shall be considered to be burdensome if: (a) 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; (b) The level of proposed tariff is considerably beyond the affordability level of intended Consumers.

The Authority 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 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. The Authority 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, shall provide their consumers access to Emergency Services, without any charge. The licensees shall 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. Provided further that the Fixed-line/Mobile/Wireless Licensees shall offer Premium Rate Services to Consumers within the price ceilings notified by the Authority from time to time.

The licensees shall upload 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 shall not activate automatic renewal of subscription 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 shall be intimated prior to first auto renewal. The operators shall send SMS free of cost to the Consumer when he/she is approaching 50 percent of the limit of the package, then at 80 percent of the limit and finally at 100 percent usage of the package, after which the services shall be blocked to protect the customer from excessive use without knowing that his /her credit limit has reached 100 percent. The licensees shall clearly mention the method through which the subscriber/ consumer can renew the package. The SMS intimating subscription expiry shall include the rate of the service after expiry of the package limit.

Copyright Business Recorder, 2022