Internet Service Costs Could Rise as Telecom Infrastructure Charges Increase
Internet and telecom service providers in Pakistan have raised concerns over significant increases in charges for installing and maintaining telecom infrastructure at Quaid-e-Azam Industrial Estate (QIE).
The Pakistan Telecommunication Access Providers Association (PTAPA) has approached Punjab authorities and the federal government, seeking a review of the revised charges introduced by the QIE management.
Higher Charges for Telecom Cables
Under the new rates, the annual rent for aerial telecom cables has increased from Rs. 50 to Rs. 300 per metre, representing a 500 percent increase.
Charges for underground telecom infrastructure have also been revised.
The one-time right-of-way (ROW) fee for buried cables has increased from Rs. 300 to Rs. 1,000 per metre, while the annual rent has risen from Rs. 100 to Rs. 300 per metre.
The one-time supervision fee for underground cables has also increased from Rs. 80 to Rs. 250 per metre.
Telecom Industry Seeks Government Intervention
PTAPA has argued that the revised charges do not align with the federal government’s Public & Private Right of Way Policy Directives.
The association has urged authorities to implement the approved policy and review the charges imposed on telecom operators.
According to PTAPA, right-of-way charges imposed by public authorities should generally follow a no-profit-no-loss approach, covering the cost of providing the relevant service rather than becoming a source of commercial revenue.
The association also stated that telecom companies already paying approved tariffs for using electricity distribution company poles should not face additional permission or NOC charges.
Possible Impact on Internet Services
PTAPA has warned that higher infrastructure costs could eventually put pressure on telecom operators and internet service providers.
However, there has been no confirmed announcement that internet package prices will increase as a result of the revised QIE charges.
The association has requested urgent government intervention, particularly regarding permissions for installing new telecom infrastructure.
It has also warned that delays in approvals could slow the expansion of telecom networks and affect internet and communication services for businesses operating within the industrial estate.
