KARACHI: The Pakistan Telecommunication Authority (PTA) has proposed 120 percent increase in radio frequency spectrum fee for Private Radio Networks (PRN).
In recently issued consultation paper on the revision of radio frequency spectrum fee for PRN, the PTA has said that a revision in the fee of frequency spectrum assigned for PRN is being proposed in light of government of Pakistan’s Telecommunication Policy, 2015. This revision is specifically for the usage of radio frequency spectrum, which is not assigned through auctions, nor in the category of very congested spectrum and portion of the spectrum where the risk of interference is low.
According to the PTA, PRN are categorized as Private Land Mobile Wireless Networks, Point-to-point Fixed Links in UHF,VHF,HF, AM and FM Broadcasting Radio Service, Aeronautical and Maritime Service, Earth Station and TV & Satellite Communication Services.
The radio frequency spectrum rates for the Radio Based Services/ Private Radio
Networks were implemented back in 2000 and since then, the same rates have been in vogue without any revision, said PTA. “Now, the government of Pakistan, in its Telecommunication Policy 2015 has directed that the spectrum be assigned to the licensee, in equation with the value of that spectrum and fee be established/ revised that is economically justified”.
The administrative cost of the spectrum has increased a considerable amount. Hence, the PTA is of the view that the rates shall be adjusted with respect to the inflation, so as to bring them at par with all other services of the economy and to adjust the management and administration cost of this Spectrum with its usage fee/ charges.
PTA has adjusted the exiting rates by the factor of inflation rate by simply finding the percentage increase in the rates of 2001 to 2016. The adjustment has given a rise of almost 120 percent in the rates (average annual increase of 8.22%). i.e. a base station that was charged Rs 2,500 shall now be charged Rs 5,600. “It is further proposed that in metropolitan areas i.e. all the provincial capitals (only) and federal capital, 15 percent more than the basic proposed rates shall be charged i.e. Rs 6,325 shall be charged for a Base Station”.
The new rates (as approved), shall be implemented with effect from the date of approval from federal government. The revision shall be applicable to all existing, new and renewal cases. In light of the proposed Administrative Cost Recovery (ACR) based charging scheme, it would be expected that the inflation adjustment would result in an increase of around 120 percent. That is, rates increase by a little more than twice. In more heavily congested areas i.e. all provincial and federal capitals, the use of PRN allocations would see the increase in costs by 153 percent or nearly two and a half times increase in the annual license fees, PTA added.