Pakistan Telecommunication Authority has decided to reduce the mobile termination rate in phases to reduce the call charges of all networks

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Pakistan Telecommunication Authority has decided to reduce the mobile termination rate in phases to reduce the call charges of all networks

In the first phase, it will remain at the same level till June 2022. According to the PTA document, from July 2022, MTR will be further reduced to Rs 0.40 per minute till 2023. From July 2023, MTR will be reduced to 0.30 per minute
International Telecommunication Union
The MTR expiration rate is defined as the price charged by an operator for sending calls from other network users to their own subscribers. Similarly, MTR is the “cost that a cellular mobile Operator (CMO) takes from another mobile operator to terminate your off-net calls on your network
End users are generally unaware of the wholesale termination charges that are levied between operators. More termination charges may be in favor of larger players than smaller operators. Rationalization is important to provide a level playing field. Furthermore, effective implementation of interconnection promotes competition in the telecom sector.
In November 2018, PTA reduced MTR from Rs. 0.90 per minute to Rs 0.80 per minute from January 2019 to December 2019 and Rs 0.70 per minute from January 2020 to Rs. In which international benchmarking analysis for MTR determination in Pakistan was provided
The article states that Pakistan’s current MTR (0.70 per minute) is still very high in the region and in line with international best practices.
According to the PTA, regional comparisons in this regard show that Pakistan’s MTR is 0. 0.41 per minute, which is much higher than Bangladesh, India, Malaysia and Sri Lanka where the rates are $ 0.16 $ 0- $ 0.24 and 0.25 respectively. Is. In addition, most countries are constantly reducing their MTRs
An analysis of the international benchmarking done in the article shows that the MTR calculated for Pakistan is between Rs. 0.28 to Rs. 0.30 according to the purchasing power parity adjustment and between Rs. 0.12 to Rs. 0.24 per consumer. According to the average earnings adjustment, therefore, the PTA recommended that the MTR be fixed at Rs. 0.30 per minute.
All CMOs including SCOs as well as LL and LDI operators were requested to submit their comments and feedback on the issues highlighted in the article. After taking appropriate action and considering the comments of the operators, the PTA decided to reduce the MTR and set a phased reduction in MTR for all types of calls for Pakistan and AJ&K and GB ie local-long distance. And international incoming calls from other mobile networks or fixed networks to mobile networks

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