1. Charging Mechanism for 131- Dialup Internet Calls Presentation at PTA Hearing by ISPAK 12 February 2008

2. Facts PTCL introduced multi-metering of local calls in 1998. As part of Finance Bill 1998-99, Government of Pakistan specifically exempted multi-metering of local Internet calls to promote research and education in the country. The then National Assembly passed the Bill and this was made a part of national statutes.

3. Facts IT Policy 2000 places key emphasis on Internet availability at low cost to common people. It has full chapter dedicated to Internet promotion 3.4.9 and word “Internet” is used 60 times in the approved Policy document.

4. Facts The Telecom Deregulation Policy approved by the Federal Cabinet in 2003 lays special emphasis on promotion of IT and Internet in the country. One of Policy Objectives as defined in the Article 3(h) is to “Maintain consistency with Pakistan’s IT and Internet promotion policy of low prices for bandwidth to make Internet access affordable”.

5. Facts The Telecom Deregulation Policy also seeks Continuity of IT Policy and Article 9.1 of the Policy states “PTCL will be obliged to continue offering ‘131’ Internet access as at present, and to continue to extend the service to PTCL exchanges not currently served, at the same average annual rate (measured in exchanges) as achieved during the exclusivity period”.

6. Facts The Policy also makes mandatory for the new licensees of basic telephony services to offer 131 based un-metered Internet Access services in Article 9.2 which states “New entrants will also be required to offer ‘131’ Internet access services at standard ‘131’ prices applicable to incumbents”.

7. PTCL already gets paid… Due to low quality of PTCL’s copper network, associated technical problems leading to frequent disconnections and re-establishing the connection by re-dialing, dial-up users are already charged for many local calls while accessing the Internet. PTCL already makes lot of revenue for local Internet calls. Multi- metering of Internet calls would infact add insult to the injuries of Internet users.

8. Internet growth Internet in Pakistan has not witnessed any real term growth during last 5 years whereas other telecom services have grown many folds. The total number of Internet users has not exceeded 3-5 million mark since 2002. More than 98% of the country’s Internet users still rely on dial-up technology to access the Internet. Mostly these users are students and low and middle income workers and researchers who can not afford a broadband connection.

9. ISP Industry The ISP industry has been shrinking during the last 5 years period and more than 40 ISPs have closed their businesses due to no growth in customer base and under-cutting by PTCL and its subsidiary Paknet.

10. ISP Graveyeard

11. Step to plunge country in dark ages… Multi-metering of local Internet calls would make Internet less affordable and costly for the Internet users and deprive the country of a low cost information and knowledge repository. In 21 st century of information and knowledge, this step if approved by PTA, would plunge country into darkness and have adverse effect on country’s development, education and research efforts.