PTA has proposed new regulations requiring telecommunications licensees to maintain separate accounts for their fixed and mobile operations. The “Accounting Separation (1st Amendment) Regulations, 2024” aim to promote transparency and accountability within the industry.
Under the draft regulations, licensees will be required to prepare annual separate accounts for five business units: network, retail, telecom region-wise, license-wise, and non-licensed activities. For fixed networks, accounts will be further disaggregated into access networks and core networks.
The regulations also stipulate that licensees must maintain separate accounts for retail activities, including those related to wholesale services provided to Mobile Virtual Network Operators (MVNOs). Significant Market Players (SMPs) will be required to adhere to specific cost accounting methodologies to fulfill this obligation.
The Separated Accounts will be subject to regulatory oversight, with PTA issuing guidelines on accounting principles, conventions, transfer charging, and costing methodologies. Licensees will be required to prepare these accounts annually and disclose relevant information, including profit and loss statements, balance sheet information, and supporting notes.
PTA’s move towards accounting separation is aimed at ensuring transparency, fairness, and competition within the telecommunications sector. By requiring licensees to maintain separate accounts for different business units, PTA seeks to prevent cross-subsidization and ensure that each business unit is operating on a standalone basis.
