Telecom Operators Association (ToA) has raised an official protest against a drastic 300% increase in the customs valuation of fiber broadband routers, also known as Optical Network Terminals (ONTs). The association has called on FBR Chairman, Rashid Mahmood Langrial, to review and amend the recently imposed customs valuation ruling, which they argue will place a significant financial burden on both telecom operators and end users.
According to the ToA’s letter to FBR, the valuation increase has been implemented in the form of a new ruling – Valuation Order No. 1931/2024 – which revises the import price of ONTs from $50 per unit to $165 for devices equipped with RF (cable TV) ports, and from $27 to $44 for Wi-Fi-only models. This abrupt hike has been met with strong opposition from Pakistan’s leading telecom operators, including PTCL, Nayatel, Cybernet, and Transworld.
The association highlighted that the revised valuation significantly deviates from market realities and the actual import invoices that were submitted to the Directorate General of Customs Valuation. The letter points out that the updated customs valuation is inconsistent with the price trends observed in the market and disregards the submissions made by operators, which were based on real transactional values.
In the protest letter, the ToA expressed concern that the customs valuation ruling undermines Pakistan’s broadband development, which is a core component of the government’s Digital Pakistan Vision. The surge in router import costs threatens to make broadband services less affordable for consumers, which could slow the rollout of fiber-to-the-home (FTTH) networks across the country. Additionally, the ToA stressed that the inflated valuations would adversely affect the telecom sector’s ability to meet the growing demand for high-speed internet, particularly in underserved regions.
The association also criticized the valuation for considering devices with RF ports in the same category as Wi-Fi-only devices, despite the fact that RF ports are used solely for cable TV connectivity and bear no relation to internet or Wi-Fi performance. Furthermore, the ToA objected to the decision to differentiate the valuation of ONTs based on Wi-Fi standards (Wi-Fi 4, 5, 6, and 7), calling it an arbitrary and misleading classification that does not reflect the actual functionality of the devices.
The ToA has requested the FBR Chairman to reconsider the ruling and consult with experts from the Ministry of IT & Telecom, the Pakistan Telecommunication Authority (PTA), and PEMRA. The association believes that involving these stakeholders will ensure a more informed and accurate valuation process, which will align with the technical realities of the telecom sector.
In conclusion, the ToA has emphasized the detrimental effects that the arbitrary valuation of ONTs could have on Pakistan’s broadband infrastructure and digital connectivity goals. The association has urged FBR to revise the ruling promptly to prevent further disruption to the country’s telecom industry and its ability to meet the broadband needs of the population.
This ongoing dispute has placed the issue of affordable broadband services at the forefront of discussions concerning Pakistan’s digital future, signaling a critical moment for the telecom sector and its role in the country’s economic and technological growth.
