PTA Eyes Stricter Rules for Leading Telcos
Telecom operators with more than 25 percent of revenues in a relevant market may be presumed to have Significant Market … Read More The post PTA Eyes Stricter Rules for Leading Telcos appeared first on ProPakistani .
The Pakistan Telecommunication Authority (PTA) is considering stricter regulations for telecommunications companies that hold more than 25 percent of revenues in their respective markets. These amendments, proposed by the PTA, could subject such operators to tighter pricing and tariff controls as they may be deemed to have Significant Market Power (SMP).
The Ministry of Information Technology and Telecommunication has drafted the Telecommunication Competition Rules, 2026, aiming to foster fair competition and deter discriminatory practices in the telecom sector. Initially, a 25 percent share of revenue would be used to gauge market power. However, operators below this threshold might still be considered to have SMP, while those above might be exempted if a comprehensive market assessment fails to confirm it.
The PTA will evaluate SMP based on various factors, such as the level of market concentration, spectrum assets, financial and technical prowess, control over critical infrastructure, access to essential services like subscriber and distribution, economies of scale, vertical integration, entry barriers, and network effects. Operators labeled with SMP would face more stringent obligations, including pricing and tariff controls, enhanced transparency, accounting separation, interconnection and infrastructure access, adherence to wholesale service and national roaming requirements, along with safeguards against discriminatory or exclusionary practices.
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