Charging Mechanism for 131Dialup Internet Calls
Presentation at PTA Hearing
by
ISPAK
12 February 2008
Facts
• PTCL introduced multi-metering of local calls
in 1998. As part of Finance Bill 1998-99,
Government of Pakistan specifically exempted
multi-metering of local Internet calls to
promote research and education in the
country. The then National Assembly passed
the Bill and this was made a part of national
statutes.
Facts
• IT Policy 2000 places key emphasis on Internet
availability at low cost to common people. It
has full chapter dedicated to Internet
promotion 3.4.9 and word “Internet” is used
60 times in the approved Policy document.
Facts
• The Telecom Deregulation Policy approved by
the Federal Cabinet in 2003 lays special
emphasis on promotion of IT and Internet in
the country. One of Policy Objectives as
defined in the Article 3(h) is to “Maintain
consistency with Pakistan’s IT and Internet
promotion policy of low prices for bandwidth
to make Internet access affordable”.
Facts
• The Telecom Deregulation Policy also seeks
Continuity of IT Policy and Article 9.1 of the
Policy states “PTCL will be obliged to continue
offering ‘131’ Internet access as at present,
and to continue to extend the service to PTCL
exchanges not currently served, at the same
average annual rate (measured in exchanges)
as achieved during the exclusivity period”.
Facts
• The Policy also makes mandatory for the new
licensees of basic telephony services to offer
131 based un-metered Internet Access
services in Article 9.2 which states “New
entrants will also be required to offer ‘131’
Internet access services at standard ‘131’
prices applicable to incumbents”.
PTCL already gets paid…
• Due to low quality of PTCL’s copper network,
associated technical problems leading to
frequent disconnections and re-establishing
the connection by re-dialing, dial-up users are
already charged for many local calls while
accessing the Internet. PTCL already makes lot
of revenue for local Internet calls. Multimetering of Internet calls would infact add
insult to the injuries of Internet users.
Internet growth
• Internet in Pakistan has not witnessed any real
term growth during last 5 years whereas other
telecom services have grown many folds. The
total number of Internet users has not exceeded
3-5 million mark since 2002.
• More than 98% of the country’s Internet users
still rely on dial-up technology to access the
Internet. Mostly these users are students and low
and middle income workers and researchers who
can not afford a broadband connection.
ISP Industry
• The ISP industry has been shrinking during the
last 5 years period and more than 40 ISPs have
closed their businesses due to no growth in
customer base and under-cutting by PTCL and
its subsidiary Paknet.
ISP Graveyeard
Step to plunge country in dark ages…
• Multi-metering of local Internet calls would
make Internet less affordable and costly for
the Internet users and deprive the country of
a low cost information and knowledge
repository. In 21st century of information and
knowledge, this step if approved by PTA,
would plunge country into darkness and have
adverse effect on country’s development,
education and research efforts.