Legislative framework for Regulating Telecommunication sector in Pakistan ALI ASGHAR DG (Law and...
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Transcript of Legislative framework for Regulating Telecommunication sector in Pakistan ALI ASGHAR DG (Law and...
Legislative framework for Regulating Telecommunication sector in Pakistan
ALI ASGHAR DG (Law and Regulation)PTA
SEQUENCESEQUENCE• 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, 1995.
•Pakistan Telecommunication (Re-organization) Act, 1996
•Amendments in 2006
History of Telecom Legislation in Pakistan
Current legislation/Telecom Regulatory Current legislation/Telecom Regulatory Regime Regime
• Pakistan Telecommunication Reorg Act 1996.
• 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 ActSalient 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….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 & systems6. Investigate and adjudicate Complaints & Claims
against the licensees
Cont….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 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…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 Issuance of Enforcement ) Orders and penalties (section 23)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 penaltiesOffences 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, 2004Access 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, 2000Pakistan 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, 2006Research 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, 2006Universal 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, 2005Access 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, 2007Accounting 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 Protection from Spam, Unsolicited, Fraudulent and Obnoxious Communication Regulations,2009Obnoxious 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, Class Licensing & Registration Regulations, 20072007
• 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, 2009Consumer 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, 2004Fixed 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 Interconnection Disputes Resolutions Regulations, 2004Regulations, 2004
• For handling disputes between the licensees related
to interconnection,
• prescribe procedure for handling and investigating
such disputes.
Number Allocation & Administration Number Allocation & Administration Regulations, 2011Regulations, 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, Telecom and terminal equipment installer regulations, 20122012
• 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, Broadband Quality of services regulations, 20142014
1. 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, 2005Mobile 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 Monitoring and Reconciliation of International Telephony Traffic Regulations, 2010Telephony 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, 2006PTA (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, 2004Type 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 Protection from Health Related Effects of Radio Base Station Antennas Regulations, 2008Station 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 Powers of the Federal Government to issue the directivesdirectives
• 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
Cellular Policy
2004 Broadband Policy
2004
USF & R&D Policy NGMS Policy 2013Telecom Policy
Review(Under Progress)
Technology Neutral - 2 New LicensesTechnology Neutral - 2 New LicensesTechnology Neutral - 2 New LicensesTechnology Neutral - 2 New Licenses
Open AuctionOpen AuctionOpen AuctionOpen Auction
Highest Bid – US$ 291 MillionHighest Bid – US$ 291 MillionHighest Bid – US$ 291 MillionHighest Bid – US$ 291 Million
Warid & TelenorWarid & TelenorWarid & TelenorWarid & Telenor
Role-Out Obligations – 70% Tehsil HQs Role-Out Obligations – 70% Tehsil HQs (US$ 15M Performance Bond)(US$ 15M Performance Bond)Role-Out Obligations – 70% Tehsil HQs Role-Out Obligations – 70% Tehsil HQs (US$ 15M Performance Bond)(US$ 15M Performance Bond)
Existing Operators to Pay the Same Amount for RenewalExisting Operators to Pay the Same Amount for RenewalExisting Operators to Pay the Same Amount for RenewalExisting Operators to Pay the Same Amount for Renewal
Cellular Mobile Policy - 2004
Spectrum auction for NGMS- 2100 MHs & 1800 MHs Spectrum auction for NGMS- 2100 MHs & 1800 MHs Spectrum auction for NGMS- 2100 MHs & 1800 MHs Spectrum auction for NGMS- 2100 MHs & 1800 MHs
Auction for 3G/4G held in April 2014Auction for 3G/4G held in April 2014Auction for 3G/4G held in April 2014Auction for 3G/4G held in April 2014
Total Bid/Auction Price – US $ 1.128 BillionTotal Bid/Auction Price – US $ 1.128 BillionTotal Bid/Auction Price – US $ 1.128 BillionTotal Bid/Auction Price – US $ 1.128 Billion
Highest Bidders- Zong, Telenor, ufone ,MobilinkHighest Bidders- Zong, Telenor, ufone ,MobilinkHighest Bidders- Zong, Telenor, ufone ,MobilinkHighest Bidders- Zong, Telenor, ufone ,Mobilink
NGMS Policy - 2013
Roll out obligations – 20 % converge of existing sites in 9 Months Roll out obligations – 20 % converge of existing sites in 9 Months Roll out obligations – 20 % converge of existing sites in 9 Months Roll out obligations – 20 % converge of existing sites in 9 Months
Period of license term –15 years Period of license term –15 years Period of license term –15 years Period of license term –15 years
Policy directive for Web Content ManagementPolicy 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 Technical implementation of Mobile Banking including Mobile Money Transfers and RemittancesMoney 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 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
Thanks