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Internet services may become costlier as telecom fees surge

ISLAMABAD: Internet and telecommunications services could face higher costs after a sharp increase in infrastructure charges for telecom operators at Quaid-e-Azam Industrial Estate (QIE).

The Pakistan Telecommunication Access Providers Association (PTAPA) has raised concerns with Punjab authorities and the federal government over the revised charges for installing and maintaining telecom infrastructure at the industrial estate.

Under the new rates introduced by QIE management, the annual rent for aerial telecom cables has increased from Rs50 to Rs300 per metre. This represents a 500% rise in the annual charge.

The association has warned that higher infrastructure expenses could eventually increase the cost of internet and other telecom services for consumers and businesses.

Charges for underground telecom infrastructure have also been revised significantly.

The one-time right-of-way (ROW) fee for underground cables has increased from Rs300 to Rs1,000 per metre. This amounts to an increase of more than 233%.

The annual rent for underground cables has risen from Rs100 to Rs300 per metre, while the one-time supervision fee has increased from Rs80 to Rs250 per metre.

PTAPA has objected to the revised rates, arguing that they do not comply with the federal government’s Public and Private Right of Way Policy Directives.

The association has called on the relevant authorities to ensure that the approved federal policy is implemented at QIE.

PTAPA said right-of-way charges imposed by public authorities should follow a no-profit, no-loss principle. It argued that such fees should only recover the actual cost of providing the relevant service rather than generate commercial revenue.

The association also raised concerns about additional charges on telecom operators using electricity distribution company poles.

According to PTAPA, operators already pay approved tariffs for the use of these poles. It therefore argued that additional permissions, no-objection certificates or related charges should not be imposed.

The association has urged the authorities to intervene urgently over delays in permissions for new telecom infrastructure.

It warned that withholding approvals could slow the expansion of telecom networks at the industrial estate.

Such delays could also affect businesses that rely on stable internet and communication services for their daily operations.

PTAPA has requested a review of the revised infrastructure charges and called for them to be brought into line with the federal right-of-way policy.

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