Re: Calls to Pakistan getting expensive
Expats to pay up to $150m a month to call Pakistan](http://www.thenews.com.pk/Todays-News-2-135087-Expats-to-pay-up-to-$150m-a-month-to-call-Pakistan)
Jawwad Rizvi
Monday, October 01, 2012
LAHORE: Overseas Pakistanis will have to pay around $120-150 million per month to talk to their near and dear ones, as an International Clearing House (ICH) regime is going to be operative in the country from today (October1, 2012).
The call rates for overseas Pakistanis have increased from 10-10.5 cents to 10-12 cents per minute under the new regime, implemented by the Pakistan Telecommunication Authority (PTA). The Competition Commission of Pakistan (CCP) has objected to the move, saying it can create monopoly of any one operator and increase grey traffic in Pakistan.
According to the telecommunication industry sources, the rates of the Long Distance International (LDI) operators have increased the cost of overseas calls and new revised rates would be implemented from Oct 1, 2012, as instructed by the PTA.
A PTA official said the basic objective behind establishing the ICH was to control grey traffic.It would not increase grey traffic, and different telecom operators would get their quota as per their existing share in the ICH whose infrastructure has been provided by the telecom industry, he added.
According to available data, monthly international calls traffic to Pakistan is 1.5 billion minutes and the increase in rates by 10-12 cents per minute is an additional burden on the overseas Pakistanis, who will have to pay around $120-150 million monthly.
According to a telecom industry official, at a time when the international call rates for overseas Pakistanis were 5 to 6 cents per minute and monthly call traffic was around 400 million minutes, a number of grey telephone exchanges were traced and busted by the PTA. Following decline in international calling rates to 1.5 cent per minute, the legal traffic has increased to 1.5 billion minutes per month. He feared that legal international calls would again drop, as the world is competing around 1 to 2 cents per minute, but Pakistan has increased it to 10 to 12 cents per minute.
Meanwhile, a spokesperson for the CCP said various overseas Pakistanis have expressed their concerns over increase in rates. They complained that now they would have to pay more to talk to their near and dear ones and the remittance to Pakistan will also decrease.
Apprehensions have been expressed that economic activity will suffer as overseas companies will be discouraged to do business with Pakistan. The worry is that if establishment of International Clearing House (ICH) and the rates fixed for termination of incoming overseas calls to Pakistan are given effect as proposed by the Ministry of Information Technology (MoIT) and Pakistan Telecommunication Authority (PTA), it will become very expensive in Pakistan in comparison with the neighbouring countries.
Haroon Piracha, former member National Assembly and corporate member Islamabad Stock Exchange, said as technology keeps on changing, conventional means of raising revenue appears to be a short-term gain. “While a higher tariff structure might seem good for one year, web-based communication solutions like VIBER available on cell-phones will make conventional means of raising revenue and stifling competition redundant.”
Dr Huma Bukhari, the chairperson of Consumer Association of Pakistan, said the ICH was an issue of consumers concern and the CCP should be fully supported in its efforts to protect consumers’ interest.
Kaukab Iqbal, president of the Consumer Association of Pakistan, warned that if the decision to establish the ICH was not shelved by the PTA, the consumer groups would take the matter to a court of law