Telecom companies have complained about a steep rise in rates for laying and maintenance of cable infrastructure, which is likely to make internet and telecom services pricey in Pakistan.
The Pakistan Telecommunication Access Providers Association (PTAPA) has submitted a representation to the Punjab authorities and the federal government over the revised prices imposed by the management of Quaid-e-Azam Industrial Estate (QIE).
The new charges have boosted annual rent for aerial telecom cables from Rs. 50 to Rs. 300 per metre, a hike of 600 percent. PTAPA cautioned that increased infrastructure expenses could eventually bring further pressure on internet and telecom service rates.
Underground Cable Rates to Jump Big
Underground telecom infrastructure fees have also sharply increased.
The one-time Right-of-Way (ROW) cost for underground cables has been raised from Rs. 300 to Rs. 1,000 per metre, a hike of 333 per cent. The annual rent has also gone up from Rs. 100 to Rs. 300 per metre, a 200 percent rise.
At the same time, the one-time price for supervising the laying of subterranean cables has gone up from Rs.80 to Rs.250 per metre, an increase of around 213 per cent.
PTAPA Fights New Charges
The new costs do not align with the federal government’s Public & Private Right of Way Policy Directives, PTAPA added. The group has appealed to the authorities to ensure proper implementation of the agreed policy.
PTAPA said the right-of-way costs imposed by public bodies should be on a no-profit, no-loss basis. The fees should be merely a recovery of the cost of delivering the services concerned and should not be a source of commercial revenue.
The group also noted that telecom carriers are already paying permitted fees for the use of poles owned by power distribution firms. It said these businesses should not be asked to pay anything extra toward any other authorisation or No Objection Certificate (NOC) payments.
Telecom expansion could be impacted
PTAPA has urged the government to intervene promptly, noting that approvals for new communications infrastructure are being delayed.
The association cautioned that such restrictions could impede the construction of telecom networks and make it challenging to provide adequate internet and communication services to firms operating within the industrial park.
PTAPA is requesting a review and alignment of the revised costs with the federal right-of-way regulation.
