Bandwidth Tariffs – PTA’s Fresh Determination

PTA has issued Determination on 5th October 2006 on Bandwidth Tariffs offered by PTCL. You can grab your copy of the determination (53 pages, ~1 MB) from here. PTA’s website has a nice summary of the same here.

This determination is the conclusive part of the industry consultation process that PTA started in early September 2006.

Juice:

  1. PTCL has been made to reduce prices of IPLCs further. Tariffs for ISPs/Data Operators (read customers) and Voice / LDI operators (read competitors) are still different except the difference has narrowed down. Cost of half-circuits for high capacity IPLCs will, for the first time, fall under the $100K figure. Under $52K, an Voice or an ISP operator can now get an STM-1 (155 MB). This is high impact item. If even a few providers opt for leased international STM1 capacities, Pakistan will get some much-needed network-layer diversification. Yes, we will still be travelling on the same media (SMW3 / SMW4) but we should fare much better against DoS attacks and network config problems with this diversification.
  2. IP Transit services are still differentiated based on usage (something most of the people except PTCL disagreed with). However, the new reduced rates are welcome. For example, an ISP could now get STM1 capacity (155 MB) for around $47K as against $60K previously.
  3. PTCL has been asked to provide contention based (1:2) transit Internet services @ $1,000 per E1. This is in accordance with the point 6 of the recommendation I gave (full recommendation here). With lots of OFAN customers getting on-board, this is one enforced-decision that PTCL should actually be happy about. A good decision that PTCL was not taking on its own has now been forced on it. This is again, high impact. At these rates, lots of smaller ISPs that serve business customers will now be faced with a competitive price of $500 per MB while the going rate in the market is around $800 per MB.
  4. It will still cost a Voice operator $238K (down from $361K) to subscribe to 155 MB of transit Internet in Islamabad that could be used for VoIP.
  5. DPLC (Domestic Leased Private Circuits) costs have been slashed down by 20% to 30%.

What to Expect:

  1. PTCL crying foul once again with the Ministry of IT & T and/or moving legal courts against PTA’s determination.
  2. PTCL’s IP gear enforcing voice/non-voice usages on high-capacity circuits to face hickups and even getting tripped when large number of STM1 circuits get loaded. And, in the longer run,
  3. Better DSL and cable modem experiences
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3 Responses to “Bandwidth Tariffs – PTA’s Fresh Determination”

  1. Shakeel Says:

    let’s see how PTA enforce it in next year…

  2. PTCL asks, 'PTA Who?' « Tee Emm on Pakistan Next Gen Issues Says:

    […] technopolitics, newsbites, consumers, pta, internet — Tee Emm @ 12:10 pm In late 2006, PTA determined that PTCL needs to revise its bandwidth prices downward to help keep the country moving towards a […]

  3. arif hassan Says:

    PTCL teriffs are unilateral,exhorbitant and these tatamount to fleecing users through their nose. Is this the service PTCL is so proud of. Internet rates and its performance is such as to force user to disconnect PTCL services.


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