Competition tribunal upholds CCP ruling against PESCO for abuse of dominant position

ISLAMABAD – The Competition Appellate Tribunal (CAT) has upheld the Competition Commission of Pakistan’s (CCP) decision against Peshawar Electric Supply Company (PESCO), ordering it to restore the Right of Way (ROW) access on fair, reasonable, and non-discriminatory terms to all service providers, including fiber optic and local internet/cable TV operators.

The tribunal directed PESCO to formulate a new ROW policy within 30 days, following complaints by Cyber Internet Services and Nayatel alleging discriminatory pricing. Investigations revealed PESCO was charging internet providers Rs. 100 per pole while local cable operators paid only Rs. 10 per pole, amounting to unfair treatment and abuse of its dominant market position.

After the CCP issued a show-cause notice, PESCO initially withdrew the ROW facility entirely, further complicating service providers’ access. The Commission found this to be a violation of Section 3 of the Competition Act, 2010, which prohibits abuse of dominance.

CCP’s legal counsel emphasized that PESCO’s actions breached government directives on public and private ROW policies, underlining that licensed providers have the right to use electricity poles for fiber installations upon payment of regulated rent.

With sole ownership of poles in its jurisdiction and no alternative infrastructure available, PESCO’s dominant position was a key factor in the Commission’s ruling.

The CCP also recommended that all electricity distribution companies implement uniform, transparent ROW policies to ensure equitable broadband infrastructure deployment while addressing safety and access concerns.

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