The Pakistan Telecommunication Authority (PTA) has confirmed that major wholesale IP bandwidth providers in Pakistan are obstructing the reselling of IP bandwidth by other operators through the imposition of various conditions. This issue primarily concerns four dominant players in the wholesale IP bandwidth market: PTCL, Transworld Associates (TWA), Cybernet, and SCO. These companies supply bandwidth to downstream providers, including fixed-line and cellular mobile operators, who then resell it to residential and corporate customers.
According to official documents accessed by NetMag, there is no provision within the legal framework or the respective licenses of these operators that restricts downstream providers from reselling IP bandwidth to their retail customers. Despite this, wholesale providers have been imposing conditions such as recovering default amounts, setting minimum price floors, and applying other subjective measures to safeguard their business interests. These practices are considered contrary to the principles of fair competition within the telecom sector and should be prohibited.
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In a determination dated July 23, 2021, the PTA identified PTCL and TWA as Significant Market Power (SMP) operators in Pakistan’s wholesale IP bandwidth market. Recently, downstream providers have lodged complaints with the PTA, alleging that wholesale providers are restricting their ability to resell bandwidth by imposing commercial conditions.
To address these concerns, the PTA held individual meetings with the involved operators to discuss the issues in detail and gather feedback. The analysis of this feedback revealed instances where wholesale providers are indeed obstructing reselling by imposing unnecessary conditions. The PTA noted that such restrictions are not in line with international practices, where bandwidth trading is allowed without hindrance. The PTA expressed concern that bulk sales agreements are creating trade restraints, which should not be encouraged. As a result, the PTA has sought comments from telecom operators on allowing the reselling of IP bandwidth by Long-Distance and International (LDI) operators in Pakistan without any obstructions or imposed conditions.
Tags: PTA, Pakistan Telecommunication Authority, IP bandwidth, wholesale providers, PTCL, Transworld Associates, TWA, Cybernet, SCO, telecom sector, competition, reselling, downstream providers, SMP operators, Long-Distance and International operators, LDI, bandwidth market.
