PTA Unveils Another Justification for Slow Internet Speeds: Corruption Among Wholesale IP Bandwidth Providers
PTA held individual meetings with the relevant operators, discussing the issues in detail and gathering feedback: Report
Islamabad: The Pakistan Telecommunication Authority (PTA) has confirmed that wholesale IP bandwidth providers in Pakistan are obstructing the resale of IP bandwidth by imposing conditions, leading to slow internet speeds in the country.
In Pakistan, the wholesale IP bandwidth market is dominated by four major cable operators:
- Pakistan Telecommunication Company Limited (PTCL)
- Transworld Associates (TWA)
- Cybernet
- Special Communications Organization (SCO)
These companies supply bandwidth to downstream internet service providers (ISPs), including fixed-line and cellular mobile operators, who then sell it to residential and corporate consumers.
According to a private website, ProPakistani, there is no specific clause in the operators’ legal frameworks or relevant licenses that prohibits downstream providers from reselling IP bandwidth to their retail customers. However, recent reports suggest that wholesale providers are now imposing conditions on resale, such as:
- Pre-determined fee collections (if applicable)
- Price setting
- Other measures to protect business interests
These practices are seen as contrary to the principles of fair competition in the telecom sector and are not permitted.
On July 23, 2021, PTA identified PTCL and TWA as significant market power operators in Pakistan’s wholesale IP bandwidth market. Recently, PTA received complaints from downstream providers alleging that wholesale providers were imposing commercial conditions that obstructed the resale of bandwidth.
To address these concerns, PTA held individual meetings with the relevant operators, discussing the issues in detail and gathering feedback. The analysis revealed instances where wholesale providers were indeed imposing conditions that hindered the resale process. PTA noted that such restrictions are not found in international practices, where bandwidth trade is typically conducted without impediments.
PTA believes that bulk sales agreements are creating commercial barriers that should not be encouraged. Consequently, PTA has requested comments from telecom operators on allowing IP bandwidth resale through long-distance and international (LDI) operators without any restrictions or imposed conditions.
- PTA Official Website: For official statements and further information, check the PTA’s website at PTA.
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The imposition of commercial conditions by wholesale IP bandwidth providers could have significant implications for internet service quality and pricing in Pakistan. If these practices are not addressed, they may continue to affect the overall internet experience for consumers, leading to slower speeds and higher costs.
PTA’s efforts to rectify these issues and promote a more competitive and transparent bandwidth market are crucial for improving internet services in Pakistan. The authority’s next steps will be closely watched by both industry stakeholders and consumers alike.
By addressing these concerns, PTA aims to ensure that Pakistan’s internet infrastructure meets international standards and provides better services to all users.
