Pakistan Telecom Act to be amended

SOHAIL SARFRAZ

ISLAMABAD (March 31 2004): The government has decided to amend Pakistan Telecommunication (Re-organisation) Act, 1996 (Act XVII of 1996) to promote competitive environment making Telecom Deregulation Policy investment-friendly.

Sources told Business Recorder here on Tuesday that the Ministry of Information Technology has prepared a summary for the cabinet to amend the act.

The draft of the summary has been dispatched to various government organisations for their comments before submitting to the cabinet for approval.

According to details, Pakistan Telecommunication (Re-organisation) Act was enacted on October 17, 1996. Since then there have been a number of developments including the end to monopoly of Pakistan Telecommunication Company Limited (PTCL) over voice communication after January 1, 2003, creation of Pakistan Electronic Media Regulatory Authority (Pemra), growth in size and operation of National Telecommunication Corporation (NTC) and enhanced demand for frequency spectrum.

The cabinet has recently approved the Telecom De-regulation Policy and Mobile Cellular Policy to provide the telecom sector a competitive environment. These policies have necessitated amendments in the Act to expand and restructure the Frequency Allocation Board (FAB) and define its jurisdiction and functions.

The Act will be amended to introduce a tariff regime based on cost of providing service safeguarding the interest of consumers.

It would also establish a regime for "Access Promotion Contribution" to regulate diversion of prescribed part of revenue from international incoming traffic towards infrastructure development in under-served and commercially non-viable areas.

The amendment in the Telecommunication (Re-organisation) Act will give powers to the Pakistan Telecommunication Authority (PTA) to investigate and enforce competition and charge regulatory fee. Establish and manage Universal Service Fund for providing people access to telecommunication services in the un-served, under-served, rural and remote areas.

It would link Pemra, PTA and FAB for better co-ordination and sector development and matters relating to international telephony.

Sources said that the Ministry of Information Technology has also proposed other amendments in the said law.

The punishment for offences under the Telecommunication (Re-organisation) Act has been increased from two years to three years to make the offences non-bailable in order to curb the illegal international incoming traffic and other offences pertaining to telecommunication.

Moreover, the period of processing applications for spectrum by FAB has been reduced from three months to one month for facilitating the new entrants.

In line with the decision of the cabinet committee on telecommunication headed by the then Chief Executive, it is proposed that the Board of National Telecommunication Corporation (NTC) may be expanded and reconstituted and NTC be give more financial autonomy and administrative authority.

The Lahore High Court, while interpreting section 7(3) of the Act of 1996, has held that the revisional authority for hearing revisions under the Act is Secretary IT and Telecom Division, whereas Law Division opined that Secretary Cabinet Division is competent to hear the revisions. To remove this ambiguity the government has decided to amend the said law.

Copyright Business Recorder, 2004

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