In a recently issued consultation paper on the revision of radio frequency spectrum, the Pakistan Telecommunication Authority (PTA) has suggested 120 pc hike in radio frequency spectrum fee for Private Radio Networks (PRN) in accordance with the government’s Telecommunication Policy, 2015.
The proposed revision is specifically for the usage of radio frequency spectrum, which is not assigned through auctions, nor does it fall in the category of very congested spectrum and portion of the spectrum where the risk of interference is low.
According to the PTA, PRN are categorized as Private Land Mobile Wireless Networks, Point-to-point Fixed Links in UHF,VHF,HF, AM and FM Broadcasting Radio Service, Aeronautical and Maritime Service, Earth Station and TV & Satellite Communication Services.
Networks were implemented back in 2000 and since then, the same rates have been applicable without any revision informed PTA. “Now, the government of Pakistan, in its Telecommunication Policy 2015 has directed that the spectrum be assigned to the licensee, in equation with the value of that spectrum and fee be established/ revised that is economically justified”, it stated.
PTA is of the view that the administrative cost of the spectrum has risen considerably and the rates should be adjusted for inflation, and to adjust the management and administration cost of this Spectrum with its usage fee/ charges.
PTA has adjusted the existing rates for inflation rate by simply finding the percentage increase in the rates of 2001 to 2016. The adjustment has caused an increase of almost 120 pc in the rates (average annual increase of 8.22pc). i.e. a base station that was charged Rs 2,500 should now be charged Rs 5,600.
“It is further proposed that in metropolitan areas i.e. all the provincial capitals (only) and federal capital, 15 pc more than the basic proposed rates shall be charged i.e. Rs 6,325 shall be charged for a Base Station”.
The new rates (as approved), are subject to approval from the federal government before they are implemented. The revision shall be applicable to all existing, new and renewal cases.
In light of the proposed Administrative Cost Recovery (ACR) based charging scheme, it is anticipated that the adjustment for inflation would lead to an increase of around 120 pc However, in more heavily congested areas i.e. all provincial and federal capitals, the use of PRN allocations would witness an increase in costs by153 pc.
