PTA to Introduce Price Floor Regime for Telecom Sector

Pakistan Telecommunication Authority (PTA) has come up with the decision to Introduce Price Floor Regime for Telecom Sector specially mobile broadband services. This decision has been taken to address the issue of unbalanced and unhealthy competition in the telecom sector. This will for sure maintain and protect the profitability of this sector.

The regulatory watchdog has devised a plan to set minimum retail prices for mobile data and broadband services. On the other hand, minimum MBB speed will be realized upwards.

PTA to Introduce Price Floor Regime for Telecom Sector

For this reason, PTA has asked for consultation from four telecom operators, stakeholder and general public for their comments and concerns on the issue.

PTA presented its reason for healthy price regime as following:

“The current pricing mechanism under intense competition among mobile operators was not sustainable for a longer term. Resultantly, it may slow down investment in the broadband network, which was required continuously to meet the quality of service standards and bandwidth requirements of 3G and 4G and other digital services.”

While a senior telecom official responded:

“If the regulator sets floor price for data services, it would be a win-win situation for everyone involved as it would pave the way for cellular operators to improve quality of service and consumers could get seamless mobile internet connectivity,” said a senior telecom official.”

 

The unhealthy pricing strategies by mobile operators was previously outlined by the PTA but now it has finally decided to devised a full-fleged strategy for it.

Also Read: PTA Formulates Spectrum Framework

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