PTA confirms: ‘Wholesale IP bandwidth providers obstructing reselling by other operators’

ISLAMABAD: Pakistan Telecommunication Authority (PTA) has confirmed that wholesale IP bandwidth providers are obstructing IP bandwidth reselling by other operators in Pakistan through imposing certain conditions.

Official documents revealed that there is no provision in legal framework and respective licence(s) of the operators which restrict downstream providers to resell IP bandwidth to their retail customers.

Therefore, imposing of any condition on IP bandwidth reselling including but not limited to recovery of default amount (if any), dictating price floor for reselling, other subjective considerations like protecting business interest etc by wholesale providers on downstream providers/operators is against the principle of fair competition in the telecom sector and should not be allowed.

In wholesale IP bandwidth market of Pakistan presently there are four major overseas cable operators i.e. PTCL, Transworld Associates (TWA), Cybernet and SCO who are providing services to other operators. Downstream providers e.g. fixed line, cellular mobile operators buy international bandwidth from PTCL, Cybernet, SCO and TWA in wholesale and sell in retail to home and corporate customers. 2.2 PTA vide Determination dated 23rd July 2021 has declared PTCL and TWA as Significant Market Power (SMP) operators in wholesale IP bandwidth market of Pakistan.

Recently, the PTA received complaints from downstream providers, wherein, it is alleged that reselling of IP bandwidth is being restricted by wholesale bandwidth providers through imposing certain commercial conditions on reselling.

In order to analyse the issue at length, individual meetings were conducted with the concerned operators. Issue was discussed in detail and input/feedback of the operators was received. Analysis of operators’ input reveals that there are some instances wherein wholesale IP bandwidth providers are obstructing IP bandwidth reselling by other operators in Pakistan through imposing certain conditions, said the PTA.

Such type of bandwidth trade is allowed internationally and there has not been found any restrictions, imposed by whole sellers, on reselling of IP bandwidth by downstream operators.

The PTA considers that agreements for bulk sale are creating restraint in trade which should not be promoted. The PTA sought comments of telecom operators on reselling of IP Bandwidth by LDI operators in Pakistan without obstruction or imposition of any conditions.

Copyright Business Recorder, 2024