• MNP (Mobile Number Portability)
• Broadband Proliferation
• IP telephony
• Anti-competitive practices by SMP
• USO (Universal Service Obligation)
• APC (Access Promotion Contribution)

MNP (Mobile Number Portability)

As per the ‘Cellular mobile policy’, the CMTS operators have to provide the mobile number portability within two years of award of new CMTS licenses. Two new cellular mobile licenses have been issued. This will create the competition among all CMTS operators as a result of which the consumer will get better QoS and low tariff.

PTA, being the authority, is responsible for the proper implementation of MNP within the specified time frame. To ensure this, PTA has already announced the consultancy for MNP.

Broadband Proliferation

PTA recognizes the importance of broadband proliferation in the country. Broadband growth is directly associated with the social and economic uplift of country. The draft broadband policy has been prepared by Ministry of information technology. Once the policy is formally announced, PTA will take appropriate steps for its implementation. Meanwhile necessary preparations are being made to tackle the issue of broadband. It includes the analysis of various aspects of the draft policy. It plans to arrange a seminar on "Broadband Proliferation", in near future. The focus of this seminar and other efforts by regulator is to find ways to remove the hurdles in the way of bandwidth price reduction, local content development, and broadband delivery mechanism and user equipment facilitation.

IP telephony

The statistics show that future for voice communication is IP. According to a report, the worldwide enterprise IP telephony market grew about 75 percent in the second quarter of this year to $728 million, up from $414.7 million the same quarter last year. According to TeleGeography 2004, VoIP providers carried only 150 million minutes of international telephone calls in 1998, less than 0.2% percent of the world's international traffic. By 2002, cross-border VoIP traffic had grown to just under 19 billion minutes, about 11 percent of the world's international traffic.

PTA has issued the technology neutral licenses. Some of the new operators are seriously considering to deploy IP based network. PTA is making the necessary arrangements in order to tackle the related issues of QoS, numbering plan, internet telephony and costing methodologies etc.

Anti-competitive practices by SMP

One of the main challenges faced by PTA is to tackle the “Anti-competitive practices” issue by the SMP operators, i.e PTCL and Mobilink. There are various aspects related to this which include Tariff, QoS, cross subsidy, time delays and location of point of interconnect.

GOP has also decided to privatize PTCL as an integrated entity. PTA has to see the effects of this transaction over the telecom market in Pakistan. In particular, the likely problems to be faced by the regulator as a result of management change of the incumbent operator.

USO (Universal Service Obligation)

The telecom deregulation policy (TDP) states that, "The main financing mechanism to promote universal service in Pakistan will be the USF. The USF policy framework will be prepared and approved by the Federal Government. Once a framework is provided by government, it will be administered by PTA. It shall include collection of the funds, within specified policy framework, from the licensees and its disbursement within approved USF framework. The amounts and usage of the USF will be made public, and shall be subject to independent audit."

The MOIT is already working on this issue and the final policy framework is still awaited. It has invited services of consultants for the formulation of practical mechanism of USF. The proposals of interesting parties are under review by the ministry.

APC (Access PRomotion Contribution)

As per the “telecom deregulation policy”, the LDI licensees would be permitted to retain a fixed share (upto 6 US cents per minute) of termination charge paid by international carriers for termination of international incoming calls. The remaining amount called “Access Promotion Contribution” (APC) will be passed on to local loop licensees to encourage them to foster new infrastructure development and increase tele-density.

The draft APC rules have been announced by the MOIT, formal notification of which is expected soon. Meanwhile PTA is in the process of making necessary arrangements keeping in view the views of different stake holders.