ISLAMABAD - AHMAD AHMADANI - The US government has written a letter to Government of Pakistan asking it to withdraw additional charges - International Clearing House (ICH) on incoming call to Pakistan, sources said on Friday.
The sources in telecom sector disclosed that US government in its letter to the government of Pakistan has asked to remove the ICH imposed on international telecommunications traffic to Pakistan. The US has written this letter following to the order of United States Federal Communications Commission (FCC) to all US carriers to suspend immediately all payments to Pakistani long distance international (LDI) operators for termination services that are in excess of the rates that were in effect immediately prior to the rate increase, sources added.
When contacted with Rian Harris, a US Embassy spokesperson in Islamabad to know the reasons behind writing a letter to Pakistani government by the US government, she said in August, the Ministry of Information Technology and Telecommunications (MoITT) and the Pakistan Telecommunications Authority (PTA) issued a policy directive that increased the rates of all voice traffic terminating in Pakistan to $.088 per minute, which is close to a 400pc increase from the earlier rate of approximately $.02 per minute. The reported increase represents an increase of about $20 million annually, which US and other international companies will be forced to pass on to customers placing international calls to Pakistan or suffer a loss.
The directive supported the creation of an International Clearinghouse (ICH), which is a cartel-like structure among the 14 long distance operators currently in Pakistan that would allow for price fixing and quota allocations, which constitutes anti-competitive behaviour. The possibility that this proposal will lower international telecommunications traffic to Pakistan also raises questions with respect to Pakistan’s commitment under the WTO to provide reasonable access to its public telecommunications network.
US spokesperson also said that the directive could drastically raise rates for Pakistanis living abroad, with substantial impact on separated families, and could curtail or eliminate competition in the market for telecom services from international and US companies including Vonage, Skype and AT&T, the US Office of the Trade Representative has raised this issue with the Government of Pakistan. In addition, in response to a petition from US companies, on March 5th, the United States Federal Communications Commission (FCC) issued a statement finding that the MoITT and the Pakistan Telecommunications Authority directive would result in a substantial increase in the cost of and repress demand for calling Pakistan. The US FCC has therefore ordered all US carriers to suspend immediately all payments to Pakistani long distance international (LDI) operators for termination services that are in excess of the rates that were in effect immediately prior to the rate increase.
Rian Harris, a US Embassy Spokesperson in Islamabad further said, “we would note that in December, the Lahore High Court ruled that the long distance international operators must revert back to the pre-ICH rates, and the LDI operators refused to comply. As you know, the Supreme Court ruled that the Competition Commission of Pakistan (CCP) has jurisdiction on the case and we await a final ruling from the CCP.”
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Basit Farooq Alvi (Director)
Brain Telecommunication Limited
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