PTA Reveals the Real Culprits Behind Internet Slowdown in Pakistan

Pakistan Telecommunication Authority (PTA) has confirmed that wholesale IP bandwidth providers are obstructing IP bandwidth reselling by other operators in Pakistan by imposing certain conditions.

In Pakistan, the wholesale IP bandwidth market is dominated by four(04) major overseas cable operators: PTCL, Transworld Associates (TWA), Cybernet, and SCO. These companies supply bandwidth to downstream providers, such as fixed-line and cellular mobile operators, who then sell it to home and corporate customers.

Official documents available with ProPakistani revealed that there is no provision in the legal framework and respective license(s) of the operators that restrict downstream providers from reselling IP bandwidth to their retail customers.

However, wholesale providers have been imposing conditions on reselling, such as recovering default amounts (if any), setting price floors, and other subjective measures aimed at protecting business interests. These practices are seen as contrary to the principles of fair competition in the telecom sector and should not be allowed.

In a determination dated July 23, 2021, the PTA identified PTCL and TWA as Significant Market Power (SMP) operators in the wholesale IP bandwidth market of Pakistan. Recently, the PTA received complaints from downstream providers alleging that wholesale providers are restricting reselling by imposing commercial conditions.

To address these concerns, the PTA conducted individual meetings with the involved operators, discussing the issues in detail and gathering feedback.

The analysis of the feedback revealed instances where wholesale providers are indeed obstructing reselling by imposing conditions. The PTA noted that such restrictions are not found in international practices, where bandwidth trade is allowed without hindrance.

The PTA believes that agreements for bulk sales are creating trade restraints that should not be encouraged. Consequently, the PTA has sought comments from telecom operators on allowing the reselling of IP bandwidth by long-distance and International (LDI) operators in Pakistan without any obstructions or imposed conditions.