Proposed Reforms in Data Class Value Added Services Licensing Spark ISPs Worries

The Wireless & Internet Service Providers Association of Pakistan (WISPAP) has voiced significant apprehensions regarding the proposed revision of the licensing template for Data Class Value Added Services (CVAS) by the Pakistan Telecommunication Authority (PTA). WISPAP has expressed concerns that these revisions might pave the way for monopolistic practices within the industry. The Pakistan Telecommunication Authority (PTA) intends to revise the licensing template for Data Class Value Added Services (CVAS) to address disparities, simplifying entry-level licenses for internet service provision in the country, and enhancing broadband proliferation.

The PTA has highlighted that significant changes in market dynamics and technological advancements over the past two decades have profoundly reshaped the environment. Consequently, the existing scope of the Data CVAS License no longer aligns with the evolved technological landscape. Therefore, a revision of the Data CVAS License for internet service provision in the country is deemed necessary.

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In response to the PTA, the WISPAP has conducted a thorough review of the consultation paper outlining the proposed changes to the CVAS licensing. WISPAP acknowledged the objectives outlined in the consultation paper, especially regarding the need to address disparities in the current licensing framework and to promote broadband proliferation in the country. However, the association expressed concerns and offered suggestions regarding the proposed changes.

The Association expressed concerns regarding the effectiveness of the proposed changes in promoting internet proliferation, particularly in underserved areas of Pakistan. They worry that the revisions may primarily favor existing cable TV operators with licenses from PEMRA, potentially perpetuating industry stagnation due to monopolistic practices and regulatory challenges.

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WISPAP also raised concerns about the requirement for CVAS operators to enter agreements with local loop operators for infrastructure access. They argue that this requirement could lead to monopolistic practices and undue pressure from local loop operators on CVAS operators, potentially hindering network operation and development. WISPAP recommended reassessing this requirement to ensure fair competition and encourage independent infrastructure development by CVAS operators.

The Association emphasized that all CVAS operators should have the autonomy to deploy their fiber optic networks independently, without relying on agreements with Local Loop Operators or Cable TV Network Operators. They argue that this approach would foster innovation, competition, and investment in network infrastructure, leading to benefits for consumers and driving broadband adoption across the country.