PTA slashes mobile termination rates from Jan 1

ISLAMABAD: The Pakistan Telecom Authority (PTA) has reduced the Mobile Termination Rate (MTR) from Rs0.70 per minute to Rs0.50 per minute from January 1, 2022.

According to PTA, rates shall be further reduced to Rs0.40 per minute from July 1, 2022. The reduction has been made after thorough consultation with the telecom industry.

As per details, PTA is of the view that lowering of MTR would allow more competitive and innovative offerings such as free minute off-net bundles for the consumers. It is expected to make the market healthier and beneficial in terms of lower tariffs for making off-net calls. It would also benefit smaller operators in terms of reduced net payments to be made to the bigger operators.

Earlier in July, PTA had issued a consultation paper wherein it was observed that current MTR of Rs0.70 per minute in Pakistan is still higher than the benchmark results of MTR determination of 2018 and the MTRs prevailing in regional countries.

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Further, PTA had also received requests from telecom operators to review the existing mobile termination rates.

Majority of the responses received supported PTA’s recommendation to lower MTR. However, there were opposing responses too.

After an industry hearing and thorough analysis, PTA has determined the MTR for all types of calls i.e. local, long distance and international incoming, terminated on mobile networks from other mobile networks or fixed networks in the country including AJ&K and GB to be Rs0.50 per minute from January to June 2022, Rs0.40 per minute from July 2022 to June 2023, and Rs0.30 per minute from July 2023 onwards.

 

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