Senate body told no evidence of cartelisation in telecom sector

PTA chief says Jazz raised tariffs by 19% in 2024 with approval, and any excess beyond limits will be refunded to customers

The Senate Standing Committee on Information Technology and Telecommunication was briefed that no evidence of cartelisation had been found in the country’s telecom sector.

PTA Chairman retired Major General Hafeez Ur Rehman told the committee that Jazz is required to seek regulatory approval before making tariff changes. He assured lawmakers that the Pakistan Telecommunication Authority (PTA) had not permitted any cartel practices.

Committee Chairperson Senator Palwasha Khan asked how Jazz managed to generate an additional Rs6 billion from customers. Rehman clarified that the company had raised its tariffs by 19% in 2024, a move authorised by PTA to keep the market balanced. He added that if Jazz exceeded approved limits, the PTA ensures customers are refunded.

The committee also reviewed the financial condition of Ufone, noting that it was the only operator incurring losses. Senator Humayun Mohmand criticised the situation, arguing that a state-owned company should not be operating at a loss. However, Senator Afnanullah observed that Ufone’s management is entirely private and free from government interference.

On network quality issues, Rehman said improvements required a new spectrum auction. He informed the committee that he had requested the prime minister to approve the auction soon. 

The IT secretary added that Pakistan currently uses 274 MHz of spectrum, but capacity constraints and unresolved legal disputes over allocations continue to affect internet services.

When asked by Senator Saifullah Niazi about the operators involved in litigation, PTA officials declined to name them. The IT secretary pointed to the Frequency Allocation Board, while PTA clarified that the issue was being dealt with by PEMRA.

The committee also raised concerns about taxes imposed on e-commerce transactions. The IT secretary explained that taxation falls under the Ministry of Commerce and the Federal Board of Revenue (FBR). Discussions on Ufone’s performance and e-commerce taxation will continue at the next meeting.

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