The Pakistan Telecommunication Authority (PTA) has proposed a major amendment to the Ministry of Information Technology and Telecommunication (MoITT) Competition Rules 2026. Consequently, this move introduces a broader framework for determining Significant Market Power (SMP). Furthermore, it imposes strict regulatory obligations on telecom operators holding this dominance.
Redefining Significant Market Power (SMP)
Under the newly proposed amendment, the PTA will presume a telecom licensee holds Significant Market Power if its market share exceeds 25 percent. However, the authority will not rely solely on this market share threshold. Instead, the PTA will base its final determination on an overall assessment of current market conditions and competitive dynamics.
To achieve this accurately, the proposed framework lists a wide range of factors. For instance, the PTA will evaluate market share based on sectoral revenues and overall market concentration. Additionally, the authority will look at an operator’s control over essential facilities, infrastructure, and spectrum holdings.
Moreover, the assessment includes economies of scale or scope, vertical integration, and barriers to entry or expansion. Furthermore, the PTA may closely examine an operator’s financial and technical resources, access to subscribers, and available distribution channels. Finally, the authority will consider countervailing buyer power, network effects, possible collusion, demand elasticity, excess profitability, and non-price competition levels.
Strict New Obligations for Telecom Operators
Once the PTA determines an operator possesses SMP, that company will face a wider range of strict obligations. Specifically, these newly proposed rules target tariffs and pricing charges.
Additionally, the guidelines mandate strict non-discrimination, complete transparency, and fair access to essential facilities. Operators must also provide reliable interconnection and access services, along with Reference Offers. Furthermore, the PTA will strictly enforce infrastructure access, accounting separation, and detailed cost accounting.
PTA Aims to Strengthen the Regulatory Framework
To keep up with shifting industry dynamics, the amendment allows the authority to conduct periodic reviews of relevant markets. Therefore, the PTA can quickly revise its assessments whenever market conditions change.
Ultimately, these proposed changes aim to strengthen the regulatory framework for local telecom markets. By doing so, the amendment gives the PTA a much more comprehensive basis to assess market power. Consequently, the authority can apply necessary regulatory remedies effectively. If adopted, these amendments will significantly expand the assessment criteria while placing heavy operational obligations on operators wielding substantial market influence.
