Telecoms, internet in Pakistan

Of course PTCL has 1700Mbps of unused (spare, hoarded, unsold) bandwidth coming in off FLAG and the SE-ME-WEs. Reducing the wholesale price would mean using this, surely that way lies madness…..

PTA is still focussing on buying bandwidth when the time has come to start creating bandwidth. ISPs should be made to interconnect, much in the same way that phone companies are. That way more revenue is earned by Pakistani companies, we are likely to have hosting startup here, more jobs for IT graduates…. Interconnects mean free bandwidth for ISps. But who wants free bandwidth? More madness…..

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PTCL denies bandwidth rate cut

By Imran Ayub

KARACHI: Pakistan Telecommunication Company has denied rate cut for its international bandwidth service despite announcement in June 2006, as the privatised entity reveals in a plea it has not received any circular from an international consortium, which operates undersea fibre cable link.

Sources in telecom said local companies including Internet service providers and other telecom service operators recently approached the PTCL about non-implementation of its June 2006 orders, which had cost them more than $5 million in six months, the concerned department denied to charge reduced tariff, saying the international consortium FLAG (Fibre Link Around Globe) has not issued any notification about tariff revision.

“It is to inform you that we have no written evidence circular from our tariff department regarding the revision of tariff for IP transit FLAG VPOP connectivity,” a source quoted a letter from the PTCL’s international revenue department when it was questioned over higher tariff by one of the local operators.

“Therefore we can not bill customers on reduced tariffs without objective evidence,” added the PTCL letter.

The sources said the ISPs and other telecom service providers were making regular payments in accordance with the reduced tariff for international bandwidth but in a surprise move they started receiving arrears for the monthly advanced bills against IP transit and FLAG services.

“The ISPs and other companies later approached the PTCL but instead any positive any response the PTCL started issuing notices for payments without furnishing the reasons of accumulated arrears as against the regular release of timely payments,” said the source privy to the PTCL and ISPs negotiations.

The PTCL in June last announced to cut international bandwidth rate from $76,000 per two megabits a month to $60,000 as a first move after the Etisalat took over the management control after the company’s privatisation.

The decision attracted appreciation from the local telecom industry as the announcement also included tariff cut of FLAG services. However, now the telecom operators say they have started receiving bills with arrears that defines their previous bill payment, which were paid in line with the reduced tariff rates.

“To avoid dislocation of our services the international revenue PTCL was again approached with the request dated to provide the details or reasons of accumulated arrears,” said one of the operators, who wished not to be named.

“Finally we received a communiquÈ from the PTCL which says they have no written evidence from the FLAG to offer reduced tariff.”

He questioned the PTCL claims and said the FLAG Telecom representative had already officially communicated their agreement for the reduced same prices.

“The PTA (Pakistan Telecommunication Authority) has already showed concern over the PTCL tariff rate and the recent approach of the company would hit the industry interest, which is already bearing higher cost of doing business in Pakistan,” he added.

“In the best interest of supporting broadband services in the country the PTCL high ups and the regulator itself should intervene and issue directives to the department concerned for implementation of long pending reduced tariff effective June 2006.”