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Late But Right CCP Feels the Burden of Unreasonable Service Charges on Consumers

Telecom by Adham Ali (December 25, 11:38 AM)



CCP VS Telecom Operators

CCP (Competition commission of Pakistan) finally broke out the silence and now comes in action against the telecom companies’ decision taken in past back in 2011 to increase the service charges.

You might remember that all five operators imposed the charges in July 2011 which at that time ranges from 1% - 1.5% and this charge was started to be deducted on all prepaid loads with a name as service or maintenance charges. An increment has been added to this charge slowly and yearly in 2012 and later on in 2013 which then makes this charge to reach from 1% to 3% and from 1.5% to 5%.

Late but Right, at last CCP finds that these service charges doesn’t refers to any service delivered to consumer nor it refers to uplifting or improving the current services.

All this matter is has been asked by the CCP from operators, all operators replied to the query and CCP gathered and presented all of the information in a fact finding report.

If you want to review and download the report you just have to click here.

CCP claimed that this increase in charges may comprise of the hidden costs of acquiring other telecommunication and data services and showing the picture that the prices of services are lower than the actual costs.

If this is the real picture behind then this is the violation of the SEC-10 of Competition Act, 2010. To clear this picture all five operators were issued a Show Cause notice to clear their side before action by CCP.

Different influential’s and sectors belonging to public says that CCP should also consider the cartelization of all five companies as they all increase the service charges in a parallel manner since 2008 and the later on increment in 2012 and 2013 in same manner also give strong side to this point.

Furthermore CCP completely ignores the first increase of 5% in 2008 which is led by Telenor while other companies simply followed this and add this increase to their reloads also in same proportions.

This reality also gives strong side to this behind the scene cartelization. After all of the discussion it can be concluded that operators are charging 8%-10% without providing any services not 3% to 5%.

To add more to above here is an interesting fact that approximately 42.5% to 44.5% of consumers money has been deducted in the form of taxes or these Service Charges and Still now there are many people that are saying that People don’t pay taxes!

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