ISLAMABAD: The Pakistan Telecommunication Authority (PTA) has hinted at making off-net calls further cheaper by reviewing Mobile Termination Rate (MTR), official documents revealed.
The MTR plays a critical role in protecting smaller players and automatically rationalising retail tariffs, particularly for off-net calls.
The changing market structure of the cellular mobile segment in Pakistan necessitated a review of the existing MTR at Re 0.90 per minute.
Following in-depth deliberations, the PTA reduced the MTR for all types of calls (local, long-distance, and international incoming) terminated on mobile networks from other mobile networks or fixed networks from Re 0.90 to Re 0.80 from January 1, 2019; the rate has further been reduced to Re 0.70 in 2020.
To provide relief to the customers, the MTR will be further reviewed in line with international best practices, documents revealed.
The MTR or mobile termination rate is the amount that the receiving operator must charge when a call is made to another network.
The MTR of Re 0.90 per minute was determined in 2010 and no operator could charge less than this rate.
Due to prevailing industry dynamics, there was a call for a reduction in the MTR from mobile operators.
The PTA had asked all the stakeholders for their input in revising the MTR.
Subsequently, the MTR will be reviewed in the coming years in line with the international best practices.
It is expected that the revised MTR will help to keep tariffs low for consumers.
The documents further revealed that the PTA carries out a regular exercise to verify and check whether Cellular Mobile Operators (CMOs) are charging their customers retail tariffs according to advertised rates.
Copyright Business Recorder, 2021
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