KARACHI: Considering constant complaints by cellular mobile operators (CMOs) against wireless local loop (WLL) operators regarding violation of limited mobility, the Pakistan Telecommunication Authority (PTA) has asked the stakeholders to provide regulatory remedies and solutions in this regard.
PTA has issued a consultation paper in order to obtain comments and details from the stakeholders before reaching to conclusion for finalising the regulatory measures and solution under the Telecom Policy 2015.
The paper stated that CMOs wanted to redefine the cell for mobility but never suggested or proposed solutions while maintaining the level playing field with rest of the telecom sector. Telecom Policy 2015 was issued to deliberate and come up with framework for regulatory measures and solutions.
In order to address the technology advantages and regulatory constraints despite heavy cost of mobile license, PTA would analyse the situation so that significant growth in WLL segment may be ensured, it added.
PTA has received several complaints from the CMOs that WLL operators were infringing their rights by provisions of service, which violate limited mobility restrictions. PTA analysed that during the previous limited mobility determination, the cost of cellular license is approximately four times higher than WLL license with similar spectrum because cellular licenses were allowed to provide mobile services whereas WLL licenses were permitted to provide fix services using wireless solution with limited mobility compliance terminals.
However, the WLL operators said that WLL industry never threatened the cellular industry, as the target market of cellular was different with addressable market of 160 million compared to addressable household of 15-20 million market for WLL. CMOs have already achieved a customers’ base of 150 million whereas WLL operators have a customer base of 2.3 million (0.8 million voice, 1.3 million EVO, 0.25 million WIMAX). They said CMOs have reached 80% of the total addressable market, whereas WLL operators achieved just over 10% of the total addressable market, adding that WLL operators were actually paying more for restricted services.
The spectrum cost per connection of WLL services is $0.42 for 20 million homes of addressable market, whereas the spectrum cost per connection for cellular services was $0.09 with 160 million persons of addressable market, they highlighted.
The CMOs replied that failure to implement limited mobility within the spirit of telecom policy would allow the WLL operators to overtake cellular business and would end up being a cellular operator through backdoor, thereby eroding the business plans of cellular operators, who obtained cellular licenses against an auction price of approximate $310 million.
PTA in its consultation paper has directed stakeholders to submit their solutions and analysis considering the possible hurdles in non-implementation of limited mobility and any impact on revenue of CMOs due to violation of limited mobility by WLL operators, even with lesser teledensity.
PTA informed the stakeholders that there was a need to redefine the area for mobility i.e. restricting voice to single cell and enhancing data by inclusion of cluster, city area, national dialing code (NDC) area or any other remaining within a telecom/licensed region/or/it should be kept unchanged. In case of WLL licensees, limited mobility was the service that uses the system to communicate with base station with restriction irrespective of the service as per the existing provisions.