The case between PTCL and Pakistan Telecommunication Authority (PTA) has finally been decided by the Islamabad High Court by dismissing PTCL appeal regarding dispute concerning origination charges on "Non-prepaid calling card service". It is clarified that Long Distance and International (LDI) operators are dependent on PTCL's network for connectivity and, therefore, are required to pay origination charges to PTCL for providing prepaid calling card services.
The dispute between PTCL and LDI operators arose when PTCL started charging LDI operators for unsuccessful calls as well, thus making businesses of LDIs unviable. PTCL took the view that since the calls had been responded by Interactive Voice Response (IVR) using PTCL's resources; therefore, the duration used for IVR should be considered as a successful call.
LDI operators were of the view that the terms and conditions given in Reference Interconnection Offer (RIO) of PTCL did not address the said issue in such a manner and they should not be charged for that service for which they cannot charge their subscribers. Moreover, they also argued that PTCL was not charging pre-call connection duration used for IVR from its O&M partners.
PTA, being the telecom regulator, took up the issue with LDI operators and PTCL. In this regard, detailed consultations, meetings and deliberations were held with the industry. International references were also studied by PTA and detailed calculations were made in order to assess and verify claim of both parties. Finally PTA gave determination on August 21, 2006 that PTCL shall charge origination charges from LDI operators for both 'Revenue Time' and 'Non-Revenue Time' on calling card traffic after giving 25% discount being a win-win situation for all parties. However, the Determination was challenged by PTCL in the court of law.
The Islamabad High Court after hearing detailed arguments from PTA and PTCL dismissed PTCL's appeal and upheld PTA's determination, stating that the determination reflected all material aspects of the issue, not considered but recorded as well, and the reasoning advanced by PTA was not only cogent but plausible.
The court's landmark decision will help build the industry's confidence and of general public PTA's regarding fair and transparent decision-making process. This would also help in reviving the business of prepaid calling cards, which declined over the past few years owing to various factors, including the dispute between PTCL and LDI operators. As a result of the decision, LDI operators would be able to settle their long-outstanding dues, besides resuming prepaid calling card service for the benefit of the general public.-PR