Legislative framework for Regulating Telecommunication sector in Pakistan ALI ASGHAR DG (Law and Regulation)PTA

SEQUENCE History of Telecom Legislation in Pakistan Current Legislation/Regulatory Framework Pakistan Telecom ( Reorg ) Act 1996 Functions & Powers of Authority Enforcement orders and penalties Offences Rules issued by Federal Government Regulations issued by PTA Policies issued by Federal Government Conclusion

The Telegraph Act 1885 / The Wireless Telegraphy Act, 1933 A joint DG of Posts, Telegraph & Telephone Postal and Telegraph (Amendment) Act, 1962 Pakistan Telecommunication Corporation Act, 1991 (PTC) Telecommunication Ordinance, 1994 Pakistan Telecom (Re-Organization) Ordinance, Pakistan Telecommunication (Re-organization) Act, 1996 Amendments in 2006 History of Telecom Legislation in Pakistan

Current legislation/Telecom Regulatory Regime Pakistan Telecommunication Reorg Act Rules issued by Federal Government (MOIT) Regulations made by PTA Policies issued by Federal Government (MOIT)

Pakistan Telecommunication Authority Pakistan Telecommunication Company Limited National Telecommunication Corporation Frequency Allocation Board Pakistan Telecommunication Employees Trust Pakistan Telecom Reorganization Act 1996

Salient Features of 1996 Act Establishment & Empowerment of the telecom Regulator Regulation of Telecom Industry and Services Transfer of telecom regime to private sector Powers of Federal Government to Issue Policy Directives Licensing Framework Enforcement Mechanism Offences & Penalties Establishment of PTCL as a Company Creation of National Telecom Corporation (NTC) Formation of Frequency Allocation Board (FAB)

Establishment Of PTA Number of Members: 3 (by Federal Government) Tenure of Members: 4 years (extendable) Federal Government : –MOIT- For issuance of Policy –Cabinet division –For Administrative matters

Functions of the Authority 1.Regulate Establishment, operation and maintenance of telecom system & Provision of telecom services in Pakistan. 2. disposal of applications for use of spectrum 3.Promote/protect interest of Consumers

Cont…. 4.Promote the availability of telecom services throughout Pakistan with –High quality –Efficient –Cost effective –Competitive rates 5. Promote rapid modernization of Telecom services & systems 6.Investigate and adjudicate Complaints & Claims against the licensees

Cont…. 7.Recommend to the Federal Government on policies for : International telecommunication/ meetings; International Agreements on international traffic; and Account settlement. 8.Perform other functions as the Government may assign 9.Regulate arrangement amongst telecom service providers for sharing their revenue 10.Ensure compliance with Universal Services Obligations.

Powers of the Authority Grant and Renew licenses Monitor and Enforce licenses Refer applications for frequency spectrum to FAB Modify the licenses Regulate tariff for telecom services Regulate transfer of license Prescribe standards for equipments Regulate Access Promotion Contributions

Cont… Protect consumer rights Issue guidelines for interconnection Inspection of Telecom equipment or premises Summon any person for investigation and inquiry. Develop National Numbering Plan Issue regulations for powers & functions Levy fee Auction for licensing. Settle disputes between licensees Regulate Competition in the telecom sector

Responsibilities of the Authority Protection of rights of licensees Decisions and determinations to be passed through Equitable /non-discrimination Consistent & transparent manner. Expeditious disposal of applications opportunity of hearing to affected persons Fair competition in the telecom sector Protection and safeguarding interests of users

Issuance of Enforcement ) Orders and penalties (section 23) In case of contravention of any provision of Act / rules or any term or condition of the license, show cause notice and enforcement order –levy fine up to 350 million rupees; or suspend or terminate the license, – impose additional conditions or appoint an Administrator

Offences and penalties Whoever establishes, maintains or operates a telecom system or service in contravention of Act /rules/ regulations or the conditions of a license; dishonestly obtains any telecom service, with the intent to avoid payment; unauthorisedly transmits any false, fabricated, indecent or obscene intelligence; intentionally modifies or interferes with the contents of a message sent by means of a network; prevents or obstructs the transmission or delivery of any intelligence;

Intercepts or unauthorisedly discloses the contents of intelligence; damages, removes, interferes or tampers unauthorisedly deciphers the contents intentionally obstructs an officer of the Authority or the Board in the exercise of his functions or powers makes unauthorized use of the radio frequency spectrum

Every offence shall be punishable with imprisonment which may extend to three years, or with fine which may extend to ten million rupees, or with both.

Rules Issued Under section 57 of the Act

Access Promotion Contribution Rules, 2004 –To promote the expansion of infrastructure. –Distribution of fund between LDI and LL operators –Approval of accounting rates –International telephony services agreement – APC contribution and APC for universal service fund. –reporting requirements for the purpose of reconciliation.

Pakistan Telecommunication Rules, 2000 procedures for: Grant of license monitoring, compliance, enforcement and early termination of licenses Determination of significant market power (SMP) Interconnection agreements interconnection disputes resolution Tariff related matters and Appeals.

Research and Development Funds Rules, 2006 In order to: –Enhance the national ICT related to human resources. –Develop knowledge based ICT industry –allocation of funds to the key priority areas in ICT sector Obligation to deposit 0.5 % of the gross revenue from the licensed services. Procedures for administration, control and management by the Federal Government.

Universal Services Fund Rules, 2006 To expand the basic services including access to the internet. The provisioning of telecom services, systems or electronic services in un-served and under-served areas of Pakistan. Contribution by the licensee shall be 1.5%.

Regulations issued by the PTA

Access Promotion Contribution Regulations, 2005 International telephony service agreements. The constitution of consortium for the purpose of negotiating bilateral accounting rates. Mode of payment from LDI to LL licensee. The transfer of APC for USF. The Criteria of calculation of APC.

Accounting Separation Regulations, 2007 For the determination of revenue earned from the licensed services, the licensees are required to prepare separated accounts, and submit report which includes: Profit and Loss statement; Balance Sheet information Return on Capital Employed & Supporting Notes

Protection from Spam, Unsolicited, Fraudulent and Obnoxious Communication Regulations,2009 To ensure and protect the interest of consumers Measures and procedure to control….. Establishment of a “Do Not Call” (DNCR) Register Registration and management of tele-marketing by operators to control over unsolicited calls. Complaint handling procedure

Class Licensing & Registration Regulations, 2007 to regulate the issuance of CVAS licensing. The authorization of value added services for: –Class licensing for voice value added services. –Class licensing for data value added services. Registration of certificates for registration services. Procedure for the grant of license and fees

Consumer Protection Regulations, 2009 Service provisioning, Interruption and disconnection Procedure for disconnection of services by operators Licensees to refrain from unfair commercial practices, misleading actions or omissions and concealment of facts and avoid deception of average consumers. Tariff and billing should be advertised as approved Redressal of consumer grievances –Complaint handling by the operator –Complaint handling by the authority

Fixed line Tariff Regulations, 2004 Provisions regarding settlement of Tariff of Non-SMP operators. Flexibility in Impositions of Price with respect to basket services at any date and frequency. Submission of information regarding financial statements to the authority.

Interconnection Disputes Resolutions Regulations, 2004 For handling disputes between the licensees related to interconnection, prescribe procedure for handling and investigating such disputes.

Number Allocation & Administration Regulations, 2011 Under section 5 of the Act, the Authority is empowered to develop national telecommunication numbering plan. These regulations provide: The establishment, maintenance and operation of telecom services. Organizations having the authority to issue short codes and Universal access numbers are also dealt under the provisions of these regulations.

Telecom and terminal equipment installer regulations, 2012 Registration of minimum standards of installing the telecom equipment ( wired or wireless). Provisions of uninterrupted access to multi-play telecom services/broadband by using latest technology. Regulations apply to access networks (wired or wireless) and Telecom equipment PTA guidelines on in-house telecom wiring may be referred where applicable

Broadband Quality of services regulations, Applicable to all BSPs in order to define the key performance indicators (KPI’s) for broad band services. KPI’s will act as benchmarks for the determination of quality of broadband services Testing methodology for the quality of services. Technical & non technical services standards for BSPs

Mobile Number Portability Regulations, 2005 Provisions regarding the subscriber of MNP to port from one operator to another. Rights and obligations of donor/recipient operators and the subscribers of the MNP.

Monitoring and Reconciliation of International Telephony Traffic Regulations, 2010 All LDI licensees are obliged to: enforce the accurate presentation of the total traffic terminated. Monitor the information passing through equipment with access providers and licensee. Reconciliation of traffic terminated. Measure and record of the billing verification Detection and control over grey trafficking.

PTA (Functions & Powers) Regulations, 2006 Procedure for grant of licenses Application process for licenses Procedure to entertain the complaints Procedures for hearing after show cause notice Procedure for appeals Matters relating to transfer of license Issues regarding fee and other charges etc.

Type Approval Regulations, 2004 The Authority is empowered to determine and type approve telecom terminal equipment. prescribe detail procedures for: –Obtaining type approval certificate List of models not type approved in Pakistan.

Protection from Health Related Effects of Radio Base Station Antennas Regulations, 2008 To ensure compliance with the preventive measures To follow the requirements for installation of antenna, procedure for Antenna installation and safety.

Policies made by Federal Government

Powers of the Federal Government to issue the directives The Federal Government may issue policy directives to PTA whose compliance is to be ensured. The directives can be issued regarding: The number and terms of the licenses granted, The framework for the telecom sector The nationality and region to whom the licenses for the network is to be issued. the requirements for the national security.

Important Policies issued by Federal Government Deregulations Policy 2003 Deregulations Policy 2003 Cellular Policy 2004 Cellular Policy 2004 Broadband Policy 2004 Broadband Policy 2004 USF & R&D Policy NGMS Policy 2013 Telecom Policy Review(Under Progress) Telecom Policy Review(Under Progress)

Technology Neutral - 2 New Licenses Open Auction Highest Bid – US$ 291 Million Warid & Telenor Role-Out Obligations – 70% Tehsil HQs (US$ 15M Performance Bond) Existing Operators to Pay the Same Amount for Renewal Cellular Mobile Policy

Spectrum auction for NGMS MHs & 1800 MHs Auction for 3G/4G held in April 2014 Total Bid/Auction Price – US $ Billion Highest Bidders- Zong, Telenor, ufone,Mobilink NGMS Policy Roll out obligations – 20 % converge of existing sites in 9 Months Period of license term –15 years

Policy directive for Web Content Management To ensure the effective mechanism for proper monitoring, evaluation and control of the contents available on the internet. to establish the mechanism by ensuring that : –The web contents are not in violation of constitution or local laws. –The web blocking does not effect the fundamental rights of the citizens. –The relevant stakeholders have been consulted –The web monitoring cell will be strengthened

Technical implementation of Mobile Banking including Mobile Money Transfers and Remittances access to financial services through alternative mechanism. The SBP may allow the licensees to take part in M-Banking activity on their own The FIs will be responsible to protect fraud and risks. Third Party Services provider will be involved in case of multiple financial institutions The regulations should be made based on the following parameters: –Eligibility of offering M-Banking services. –Network Conditioning. –Transaction data security and integrity. –Third Party Services Providers. –Quality of services and SLA benchmarks

Conclusion Primary & Secondary Legislation require consultation with all stakeholders Clear and unambiguous drafting to avoid disputes and litigation Consistent Review and modifications Effective Monitoring and Enforcement Mechanism International Best practices to be adopted as per country specific requirements

Q &A

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