Just wanted to share a piece of information that Lahore High Court (LHC) in a historic judgment, has declared that appointment of Government servants as members and Chairman of Pakistan Telecom Authority (PTA) on deputation, by the Federal Government, being majority shareholder in PTCL, is a regulatory capture; offensive to conflicts of interests clause of Telecom Act, 1996; and would be liable to set aside.
PTA, mostly run by the members appointed on deputation from serving government officers since it was established, has been shy to pass judgments against the state owned telecom operators and saving the small and medium size operators from anti-competitive and predatory pricings and strong arm tactics of large state owned telecom operator. The court has hit that nail on the head in determining that if Government continues to appoint its serving officers on deputation in PTA, they would always safeguard the interest of Government owned entities instead of providing a level playing field to all operators from public and private sector alike.
The Honourable Judge, Justice Syed Mansoor Ali Shah, has noted in para 59 of the judgment “one of the prime responsibilities of PTA as a regulator is to ensure that fair competition in the telecommunication sector is maintained. Conflict of interest blunts the independence and fiat of the Regulator and the fear of regulatory capture shatters the confidence of the market which is grounded in fair competition. The independence of the regulator, the disqualification on the ground of conflict of interest, fair and meritorious appointments to public office are measures to ensure that PTA shields against regulatory capture and provides a level playing field in the telecom sector”.
The judgment is a landmark in our fifteen years struggle of private telecom operators against the state owned incumbent and would go a long way is regulatory reforms in Pakistan, in all sectors, whether it is telecom, oil and gas, electric power, broadcast media, etc.
The judgment is available is http://ispak.pk/Downloads/Farooq_Awan_LHC_Judgement.pdf and it’s must read for those who are interested in regulatory dynamics.
The quality and content of the judgment itself speaks of competency of the Honourable Judge. This kind of upright, meticulous and quality judgments were unimaginable in Pakistan few years back, before the Justice Movement of 2007-08.
Kind regards….Wahaj
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