PTA drafts 'Tariff for Telecom Service Regulations, 2021'

ISLAMABAD: The Pakistan Telecommunication Authority (PTA) has drafted "Tariff for Telecommunication Service Regulations, 2021" aimed at ensuring pricing flexibility, while safeguarding and protecting the interests of the consumers and providing a reasonable rate of return on investments taking into account the cost of operations.

These regulations will apply to all operators with respect to the level of tariffs, which are charged for the provision of telecommunication service to consumers.

According to the proposed regulations, Non-Significant Market Player (Non-SMP) operators are free to set and revise their tariff for basic services at any time and in any manner they like, provided they shall inform, the Authority and the consumer about their proposed tariff at least seven days, prior to the proposed applicability of new tariff and provided that the date of notification to the consumers shall commence after any modifications made by the Authority, if required.

The Authority may make modifications to or reject the proposed tariff for basic services of Non-SMP Operators only where the tariff is considered to be burdensome.

Tariff shall be considered to be burdensome, if (a) profit to the licensee is abnormally higher than the reasonable rate of return taking into account cost of operations; (b) the tariff is beyond the affordability level of intended consumers.

The Authority on its own or at the request of affected parties may amend licensee's existing tariffs, if it becomes anti-competitive or burdensome due to change in circumstances.

The SMP operators shall submit their written proposals complete in all respects for setting or revising tariff for basic services to the Authority for approval at least 15 days before intended launch of the proposed tariff.

The Authority shall review the proposal and convey its decision to the licensee within seven days of its receipt.

The Authority may approve, amend or reject the proposal or may require additional information from the licensee: if the Authority determines that the proposal is in compliance with these Regulations, it shall approve the proposal, if the Authority deems it appropriate to amend the proposal to make it in line with these Regulations, it shall notify the approval of proposal subject to certain amendments and if the Authority determines that the proposal is not in compliance with these Regulations, it shall refuse in writing by recording reason(s).

The Authority on its own or at the request of affected parties may amend, revoke or suspend a licensee's tariff, including the Authority's earlier approved tariff, if it becomes anti-competitive or burdensome due to change in circumstances, after giving opportunity of hearing to the concerned licensee.

The Authority may set price/tariff ceilings and price/tariff floors for SMP and Non-SMP operators for their basic services.

The licensee are free to set and revise their tariff for value-added services, provided that they shall inform the Authority and consumers about their tariff at least seven days, before the applicability of new tariff, provided that the date of notification to the consumers shall commence after any modifications made by the Authority, if required and provided further that the fixed-line/mobile/wireless licensees shall offer premium rate services to consumers within the price ceilings notified by the authority from time to time. All publications and advertisements relating to tariff shall strictly be in accordance with the provisions of regulation 8 and 10 of Telecom Consumer Protection Regulations, 2009: provided that the operators shall not use any misleading statements when publishing and advertising tariff.

Superlative forms of words, such as, without limitation, "lowest rates", "widest coverage", or "best network", shall not be used unless the operator has proof readily available to substantiate its claim in an objective manner.

Subject to regulation 8 of the Telecom Consumer Protection Regulations, 2009, Tariff 'publications or Tariff advertisements shall be treated as misleading in the circumstances including but not limited to (a) only the reduced call rate is advertised without highlighting the call set-up charge or higher charge on initial call(s); (b) a reduced rate is advertised without mentioning that such reduced rate is applicable only after some usage; (c) using titles which suggest absence of rentals in a tariff package whereas in reality there is a recurring fixed charge; (d) only rate is mentioned without highlighting that the rate is applicable only for on-net usage; (e) using titles such as "Unlimited" whereas there is a ceiling on usage either by way of fair usage policy or otherwise; (f) a discounted rate is advertised without highlighting that this discounted rate is applicable only during specific time duration; or (g) a discounted rate is advertised without highlighting the fixed fee to be paid for availing such discounted rate; or (h) a discounted rate is advertised for making international calls without mentioning the countries or networks (i.e. fixed or mobile) for which such discounted rate is applicable; or discounted rate is advertised without mentioning the validity period, where the discounted rate is available only for a specified period.

The licensee shall not automatically activate all services on international roaming that have been subscribed by a Consumer for domestic use and shall seek specific written consent of the Consumer against each service.

The licensees shall not activate automatic renewal of subscription based packages upon the expiry of that package, without soliciting explicit consent of the customer.

The licensees shall not charge the consumers for services supplied on a free trial basis during the trial period.

The licensees shall not charge the consumers for services supplied on a free trial basis after the end of the free trial period unless: (a) the licensee has notified the consumers of the date on which the free trial period will end; and (b) the licensees has obtained the express consent of consumers to continue the service after the expiry of the free trial on the applicable tariff notified to consumers. The licensees shall not charge for a service, which was earlier free of charge, without explicit written consent of consumer through email, SMS, mobile application, short codes or social media platforms etc.

Copyright Business Recorder, 2021