The Pakistan Telecommunication Authority (PTA) has explained that a specific news item that surfaced in several media outlets and claimed that the regulator is not permitting a rise in the rates of mobile carriers is false and deceptive.
In order to prevent any anti-competitive actions by the market leader, the PTA has made it clear that it solely regulates pricing for PMCL (Jazz), the leading mobile operator in Pakistan, in accordance with the Significant Market Player (SMP) determination and Jazz-Warid Merger condition. The PTA does not interfere with the tariff modifications of the other Cellular Mobile Operators (CMOs), who are allowed to determine their rates in accordance with their business concerns.
The telecom regulator authorised all 25 of Jazz’s tariff requests during the month of June 2022, with an average price rise of 14% due to the company’s rising operating costs. Other providers have also raised their prices, like Ufone, which in June 2022 raised the prices of its 42 packages by an average of 16.4%.
PTA notes that because of a competitive telecom industry and forward-thinking rules and regulations, telecom users in Pakistan have access to some of the most cheap telecom services in the world. According to the Economist Intelligence Unit’s (EIU) Inclusive Internet Index 2022, Pakistan has risen 15 places in the affordability rankings from 78th in 2021 to 63rd in 2022.
The regulator highlighted that Pakistan’s cellular mobile business has a low ARPU market as a result of competition, with an average ARPU per month of Rs. 215 in FY2021, which has marginally grown to Rs. 220 in FY2022 (Jul 21 to Mar 2022).
