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Thursday, January 20, 2022

Pakistan slashes mobile call rates

The Pakistan Telecommunication Authority (PTA) on Friday announced a reduction in Mobile Termination Rate (MTR), amount that a Cellular Mobile Operator (CMO) charges another mobile operator for terminating its off-net calls on its network.

Mobile Termination Rate (MTR) has been reduced by Pakistan telecom authority (PTA) from Rs. 0.70 per minute to Rs. 0.50 per minute from 1st January 2022, a move that will decrease the rate of off-net calls.

The rates will be further slashed to Rs 0.40 per minute from July 1, 2022. Lowering MTR will allow more competitive, innovative offerings, According to PTA. 

After thorough analysis and industry hearing, PTA has determined the MTR for all types of calls (i.e. local, long distance and international incoming calls) terminated on mobile networks from other mobile networks or fixed networks in Pakistan and AJ&K/GB, to be Rs.0.50 per minute from January to June 2022, Rs.0.40 per minute from July 2022 to June 2023 and Rs. 0.30 per minute from July 2023 onwards.

The step is expected to make the market healthier and beneficial in terms of lower tariffs for making off-net calls, the statement made by PTA, further adding that it would also benefit smaller operators in terms of reduced net payments to be made to the bigger operators.

According to PTA reduction in the MTR has been made after thorough consultation with the telecom industry.

PTA issued a consultation paper in July 2021 in which it was observed that current MTR of Rs.0.70 per minute in Pakistan is still higher than the benchmarking results of the MTR determination of 2018 and the MTRs prevailing in regional countries. Further, PTA had also received requests from telecom operators to review the existing mobile termination rates.

Majority of the responses received, supported PTA’s recommendation to lower MTR. Although, there were opposing responses too.

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