The Pakistan Telecommunication Authority (PTA) has announced to belatedly reduce the mobile termination rate (MTR) to PKR0.7 (USD0.0052) per minute over the next two years, according to a local newspaper.
The reduction is a result of a review conducted by PTA on MTRs on the 1st of December 2017. The study consisted of a benchmark analysis that compared Pakistan’s MTR regime to those of seven other countries i.e. India, Bangladesh, Sri Lanka, Thailand, Malaysia, Australia and the UK.
The study used mean and median purchasing power parity (PPP)-adjusted MTRs and found that Pakistan’s fees were 110% higher than the mean benchmark and 198% higher than the median. According to these benchmarks, PTA thus proposed an MTR of between PKR0.30 and PKR0.43.
The study also did an alternate comparison with the same countries that took into consideration relative ARPUs across the different markets and suggested an even lower rate of PKR0.179 to PKR0.190.
Therefore, keeping in mind with the results, PTA set out the agenda to lower MTRs to PKR0.7 by 1 December 2018, with plans to conduct a full cost-based study at a later date. However, it is being said that the implementation of the rate was reportedly delayed due to opposition from market leader Jazz.
