50 percent cut in cell phone tariff anticipated

The Pakistan Telecommunication Authority (PTA) is expecting 50 percent cut in cellular phone tariff during the next two years.
PTA chairman Major-General Shehzada Alam Malik (Retd) told newsmen here on Saturday that a number of local as well as foreign companies are showing interest for making investment in the telecommunications sector of Pakistan.
He said that validity of licenses granted to Instaphone and Paktel will expire in 2005, while that of Mobilink, in 2007. After expiry, these licenses will be issued according to new rates.
Recently, the PTA has issued licenses to two new cellular companies for the next 15 years against $145.5. He said new cellular companies are going to start operations in near future. Another cellular company is arriving in the market with a tariff 20 percent less than the existing one.
So far, the PTA has received 24 applications from various companies interested in getting licenses for long distance wireless calls and each company has submitted $500,000 fee along with performance bond.
"We are going to arrange a public forum in Islamabad on July 05, 2004 to ascertain public opinion on the issuance of new licenses," he added.
To a question, he said that quality of services of the PTCL has significantly improved.
"The PTA is considering cut in activation charges of cellular phones from Rs1000 to Rs500 and these charges would be completely eliminated within 2 years," he said.
To another question, he said the government is going to make an important decision regarding restructuring of the PTCL in July and a presentation in this regard will be given to the President in the first week of next month.
To another question, he said that law-enforcing agencies have required facilities and equipment to redress the security issues regarding increasing business of cellular phones.
He said that the PTA is considering providing details of local calls to the PTCL consumers to check any irregularity in phone bills.