PTA cuts mobile termination rates by 30 percent


#1

ISLAMABAD (May 10 2008): Pakistan Telecommunication Authority (PTA) has announced 30 percent reduction in Mobile Termination Rates (MTR) from June 1, anticipating it would further bring down the cost of telecom services. The PTA in its recent determination has announced termination charges for fixed-line as well as cellular mobile operators after considering international benchmark and other factors.

A short determination by the PTA reduced MTR charges by 28 percent, from Rs 1.25 to Rs 0.90 for a period of two-and-half years, saying it is mainly because of rapid growth of mobile market. A statement on Friday by the PTA said that reduction in MTR is expected to reduce fixed to mobile tariffs as well as off-net tariffs for cellular mobile operators, thus providing more affordable telecom services to the public.

To this effect, hearings were conducted by the authority on February 26, and April 30 which ascertained that for fixed line telecom sector, the cost models showed higher interconnection charges for local termination. Whereas for long-distance termination the results turned out to be lower than the existing applicable rates. However, the overall average termination rates are estimated to increase by about 8 percent over a period of two years.

The changes in the fixed-line termination rates are mainly attributable to higher costs in maintaining and rolling out fixed-line access networks and reduction in traffic owing to shifting of traffic from traditional fixed-line networks to mobile networks. The PTA claimed that Pakistan will be the first country in South Asia to have determined the interconnection charges based on Long Run Incremental Costs (LRIC).

It said the authority had engaged a UK-based consultant to assist it in determining interconnection charges using Fully Allocated Cost (FAC) under historical costing, bottom-up LRIC and international benchmarking. Interconnection charges play an important role in promoting investment, competition and growth of the telecom sector in any country.

The cost based interconnection charges also help in improving economic and technical efficiency of telecom operators. Internationally, LRIC methodology is used in many developed countries such as USA, UK, Sweden, Malaysia, etc, and has been declared to be the most efficient costing methodology in determining interconnection charges.

Source: http://www.brecorder.com/index.php?id=736555&currPageNo=1&query=&search=&term=&supDate=

call rates to get even cheaper yippee! :D


#2

Then none will subscribe PTCL landline.. "Apnay poa per kulari marna" :D


#3

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Then none will subscribe PTCL landline… “Apnay poa per kulari marna” :D
[/quote]

sadly they will have to coz it is needed for dsl and stuff


#4

Ye a very valid point but i hope wimax covers its place.


#5

[quote=", post:, topic:"]

Ye a very valid point but i hope wimax covers its place.
[/quote]

with providers like wateen we can only dream that


#6

but call rate would become more chaper. As i use Mobilink Indigo and they charge RS 1.25 to me as interconnect charges. what u say


#7

ironically this thread is totally opposite to the other thread i made today


#8

[quote=", post:, topic:"]

but call rate would become more chaper. As i use Mobilink Indigo and they charge RS 1.25 to me as interconnect charges. what u say
[/quote]

1.25? that’s too much


#9

[quote=", post:, topic:"]

1.25? that’s too much

[/quote]

This is a mobilink


#10

[quote=", post:, topic:"]

This is a mobilink

[/quote]

1.25 as interconnect charges is too much! per minute?


#11

yes Rs 2.00 per minute for On net calls. Rs 1.25 per minute as interconnect call charges for other network = 2.00+ 1.25= 3.25+ tax


#12

Expect reduction in off-net tariff by around 25% from July 1.

Guess who is going to slash rates first? I think either Zong or Telenor would be the first to announce rates down.

A good strategy would be to slash rates right now relying on word of mouth, means using marketing budget to keep the subscribers


#13

i think it is going to be warid


#14

I think it will be ufone


#15

What I don't understand about Warid is how they go on about bringing new packages into the market.

They always say "to subscribe, do this and that..." instead of automatically refreshing the tariffs, which is the usual practice. I guess it's a way of making money.

And for those who don't subscribe to these new offers, they're stuck with the more expensive tariff.

But personally, I don't get Warid. Just my opinion.


#16

[quote=", post:, topic:"]

What I don’t understand about Warid is how they go on about bringing new packages into the market.

They always say “to subscribe, do this and that…” instead of automatically refreshing the tariffs, which is the usual practice. I guess it’s a way of making money.

And for those who don’t subscribe to these new offers, they’re stuck with the more expensive tariff.

But personally, I don’t get Warid. Just my opinion.

[/quote]

actually i think its a good thing coz some ppl may not like the offers of their new packages and so they can stay

with the old ones and not get frustated by their package bein auto updated


#17

yeah. Remember what PTCL did to us a couple of months ago?


#18

[quote=", post:, topic:"]

yeah. Remember what PTCL did to us a couple of months ago?
[/quote]

but ptcl packages actually get costlierso the auto switch to new packages is not good in that case but when the tariff is decreasing then it is fine coz no one would complain then


#19

Warid's new packages are cheaper, by and large... so it would be dense for someone to not opt for them.

So how is it good?

It's a marketing gimmick to gain more $$$ from a society that earns in rupees.

Btw, I'm not totally anti-Warid, but it's just that I don't understand what they're trying to achieve! There's not much harmony in their operations' core.


#20

[quote=", post:, topic:"]

What I don’t understand about Warid is how they go on about bringing new packages into the market.

They always say “to subscribe, do this and that…” instead of automatically refreshing the tariffs, which is the usual practice. I guess it’s a way of making money.

And for those who don’t subscribe to these new offers, they’re stuck with the more expensive tariff.

But personally, I don’t get Warid. Just my opinion.

[/quote]

For change of package mobile service probider erarn money, so, why they do automatically