TelecomPK

Broadband in Pakistan: ISPs Against PTCL

By Babar Bhatti | May 22, 2007 | 12 Comments

I saw this news at a local paper that ISPs have lashed out strongly against PCL. The ISPs lodged complaint against PTCL for anti-competitive practices by offering lower rates to consumers than the rates it offers to ISP. I also saw this statement by the PM that 75% of house-holds in the country are to be covered with high speed Internet by 2015.

I am not sure what to make of these contradictory statements from the Telecommunication day on May 17.

The last time I checked PTA and PTCL were still in court about the bandwidth tariffs. If one was to look at the low bandwidth penetration rate and all the issues such as the ISP complaint described below, we are still in a poor shape. So HOW in the world are we going to go from say 2% to 75% in 7 years?

As you can note from the statements by Prime Minister, it does not specify an action plan or a policy change – just empty political statements. Does it give us any confidence about bandwidth proliferation in Pakistan?

Shaukat Aziz has said that we are moving forward with great speed to bridge the digital divide in the country by improving the access of information and communication technology to low-income groups and a target of 1.6 million broadband connections has been set for the next three years and infrastructure would be developed to cover 75% of house-holds in the country with high speed Internet by 2015.

“We are moving forward with great speed to bridge the digital divide in the country by improving the access of information and communication technology to low-income groups”, he expressed these views while delivering a speech on the world telecommunications and information society day being observed on May 17.

And then there’s the view from Pakistan’s Internet Service Providers (ISPs), as reported in The News.

As the world marks Telecom Day on Thursday, small telecom operators in Pakistan see their business threatened, blaming the giant Pakistan Telecommunication Company Limited (PTCL) for anti-competitive practices, which has launched DSL service at much lower rates without the regulator’s approval.

The country’s Internet Service Providers (ISPs) have warned that if the Pakistan Telecommunication Authority (PTA) fails to stop the PTCL from offering such service, it would put the future of most of the operators at risk.

It was also reported that the ISPs Association of Pakistan (ISPAK) has formally complained to PTA asking to intervene and to play its role. According to ISPAK there should be a hearing on this. The ISPs offerDSL services of 256 kbps for home users at Rs1,00o-s1,200 per month out of which around 25 per cent is paid to PTCL for local loop sharing charges.

“Ironically, PTCL’s Internet bandwidth rates for ISPs for 256, 512 and 1024 kbps bandwidth are manifold higher than its DSL offerings to other customers. Given the huge difference between above prices and the fact that PTCL is selling Internet bandwidth to ISPs at much higher rates, it is very clear that PTCL has full subtle intentions to kill private ISPs and wipe them out of competition,” added the ISPAK letter.

Here’s the rest.

Introduced in late 90s, DSL (digital subscriber line) service entered the country with a bang, but later failed to thrive as higher cost and lower than standard quality hampered the anticipated growth of the technology.

The DSL broadband is a modern technology that converts existing twisted pair telephone lines into access path for high-speed communication of various sorts. By using the technology regular telephone line can be converted into a high-speed broadband digital link.

DSL is faster than both ISDN (integrated services digital network) and leased line, yet it is more cost-effective. DSL Internet connection is ‘always on’, and the users have unlimited access to the Internet.

The downloading speed can be 10 times higher compared to regular downloading speed of an analogue modem. In addition, with one line users can be connected to both telephone and the Internet.

The ISPs and PTCL have a history of such clash of interests over the DSL services and recent episodes appear as part of the same conflict.

“Although PTCL has offered volumetric packages (limited GBs per month) which are comparable with packages of other ISPs, it has also made a special offer of ‘unlimited download for 3 months from service activation,” said the ISPAK.

It said the ISP industry of the country had already been facing severe hardships due to various anti-competitive moves and strong-arm tactics by PTCL such as cross-subsidising Paknet – an ISP of the PTCL – for undercutting other operators.

It said blocking of the PTA’s decisions by the PTCL on bandwidth and local loop sharing tariffs reduction through legal process had also deprived the ISPs from the due benefits.

“Due to reasons mentioned many ISPs have been forced to shut down their operations during the past 3-4 years resulting in negative growth of Internet and broadband in the country,” added the ISPAK.

Comments

12 Responses to “Broadband in Pakistan: ISPs Against PTCL”

  1. Broadband in Pakistan: ISPs Against PTCL - Street talk and opinions
    May 22nd, 2007 @ 9:20 am

    [...] Read more at Babar Bhatti [...]

  2. World Telecom Day In Pakistan « Pakistan Uncut
    May 22nd, 2007 @ 2:06 pm

    [...] For the full story and the details about ISPs vs PTCL see this story: http://telecompk.wordpress.com/2007/05/22/broadband-in-pakistan-isps-against-ptcl/ [...]

  3. State of Telecom Industry in Pakistan » Broadband Counter Strike By PTCL
    July 11th, 2007 @ 8:31 am

    [...] case for other Internet Service Providers (ISP’s) in competition with PTCL is also valid. ISP’s have been unable to slash down the prices to meet aggressive move by PTCL as [...]

  4. Broadband Counter Strike By PTCL : Green & White
    July 12th, 2007 @ 10:24 am

    [...] case for other Internet Service Providers (ISP’s) in competition with PTCL is also valid. ISP’s have been unable to slash down the prices to meet aggressive move by PTCL as [...]

  5. State of Telecom Industry in Pakistan » The Road Forward For Broadband In Pakistan
    August 6th, 2007 @ 4:01 pm

    [...] the broadband dispute between PTCL and ISPs? The PTA determination (pdf file) on that has been released and it seems [...]

  6. asaf
    August 22nd, 2007 @ 11:25 am

    wake up cry babbies try improving your services try to provide services rather lining your own pockets with money

  7. Worldcall Wireless in Karachi « Tee Emm on Pakistan Next Gen Issues
    September 1st, 2007 @ 12:26 pm

    [...] tele-density that is regularly being cited in anything good is to be said about Pakistan and a stiff competition and friction between DSL providers, it looks like that Worldcall as a late entrant in this digital communication [...]

  8. RIZWAN
    April 10th, 2008 @ 6:47 am

    Nice

  9. syed shahid akhtar
    June 16th, 2008 @ 12:52 pm

    i am facing problems for early internet connection

  10. Azhar Shah
    April 30th, 2009 @ 4:27 am

    CONTINUOUS UNSTABLITY OF INTERNET FACILITY ON NO.074-4059932”.
    The complaint of same nature has been reported many times on DSL complaint No. (074-4042399 & 074-4044443) but all in vane.
    also to
    The Divisional Engineer,
    Pak Telecommunication Limited,
    Larkana Division
    but yet no any action is taken for solving problem.
    we are still awaited

  11. Haq Nawaz Malik
    July 23rd, 2009 @ 4:03 am

    Deadline of PTCL No. (0514531646)

    My Last Complaint No. 63 is on 15th July, 2009.

    My complaint of same nature has been reported many times to your department, PTCL complaint office Wah but all are un actioned & regreted by your uncompetant staff.

    ONLY PTCL GET THE MONTHLY BILL BUT NO PROVIDED THE TELEPHONE SERVISE FROM DEC, 2008 TO DATE.

    Dear Sir,

    It is brought to ur kind notice that PTCL office is very effecient to sending me the monthly bill but not actioned on my complaints, my phone is dead from Jan, 09 uptill now so, why I pay u the monthly bills fore ur so effeciencies, it is also requested to ur higher authorites that kindly take a serious action on it & reimburse the said amount to me as soon as possible which u get for nothing.

    Plz disconnect my this number as soon as i will not pay u more for your this behavior.

    If you may again claim any bill I will be definately requested to ur Hounourable Minister or Prime Minister of Pakistan for rescheduling the conserned.

    The Divisional Engineer,
    Pak Telecommunication Limited,
    Wah, Taxila, Rawalpind, Islamabad Division

    still awaited to disconnect this phone number & cooperative response in this regard.

    Haq Nawaz Malik
    Assistant Director
    Admin & Protocol
    AEDB, Gop,
    Ministry of Water & Power Isb.
    0301-5250081

  12. Salman
    November 11th, 2009 @ 1:28 pm

    What a load of bollocks. Ptcl is increasing its services trying to compete with other service providers whereas in reality it can not even guarantee basic telephonic services. I live at a very central location in Rawalpindi and the whole exchange in my area is messed up. If they can’t fix that, how can they be making such claims??? This is one of my many recent complaints.

    I am a resident of the above mentioned address bearing phone number 051 5461173, registered under my father’s name. This number has been faulty regularly for a good few years now. I got so sick of complains regarding my dsl on this number that I finally had to get it turned off and I switched to Wi Tribe wireless dsl but past few months this number has been ‘dead’ very regularly so it can not even be relied on for normal telephonic communication. It is shameful that one of the largest revenue making departments in Pakistan provides such inconsistant and un reliable service. Ptcl is introducing and advertising new services where as the truth of the matter is it can not even provide basic telephonic services. And it is not only me but the whole area that is suffering the same fate regarding dsl connectivity. So much that none of the dsl providers in the area can gurantee a regular service. I am sick of running around and complaining every so often because it is just and endless ping pong. Perhaps I should have my phone turned off and use mobiles. If you agree then I would like your reply in writing so I can publically humiliate you.

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