The operators have submitted health-related recommendations to the government’s telecom industry, in which significant incentives are sought.
Cellular mobile operators (CMOs) have requested two year moratorium on Universal Service Fund (USF)/Research and Development (Ignite) fund contributions as well as a reduction from the current two percent to one percent.
The operators have submitted health-related recommendations to the government’s telecom industry, in which significant incentives are sought.
Concerning regulatory contributions and fees, telecom operators have proposed a two-year moratorium on USF/R&D fund contributions, followed by a reduction in USF and R&D to 0.75 percent and 0.25 percent of operators’ adjusted gross revenue, respectively (reducing the combined value to one percent from the current two percent).
In response to the CMO’s demands, the Pakistan Telecommunication Authority (PTA) stated that the issue is related to a government policy decision.
However, reliable sources revealed that the Ministry of Information Technology and Telecommunication, as well as the USF, are opposed to a moratorium on CMO contributions because it would jeopardise project implementation. Annually, telecom operators contribute approximately Rs 6 billion to the USF and Rs 2 billion to Ignite.
The goal of the moratorium proposal is to lower the cost of doing business and increase the profitability of the industry. However, sources claim that if the government suspends industry contributions, the telecom sector will suffer. According to sources, the issue with opening letters of credit hampered imports of mobile equipment, causing a delay in project implementation.
The Government of Pakistan (Ministry of Information Technology) established the Universal Service Fund to spread the benefits of the telecom revolution throughout Pakistan. The Universal Service Fund promotes the development of telecommunications services in unserved and underserved areas across the country.
The Pakistan Telecommunication Authority is the country’s telecommunications regulator, in charge of the establishment, operation, and maintenance of telecommunication systems as well as the provision of telecommunication services.
The Pakistan Telecommunication Authority (PTA) was established in 1996 under the Telecom Reorganization Act 1996 to regulate the establishment, operation, and maintenance of telecommunication systems, as well as the provision of telecom services.