Karachi: Pakistan Telecommunication Authority (PTA) has decided to reduce the rate of Access Promotion Contribution (APC) up to zero cents to facilitate Long Distance International (LDI) operators for enhancing traffic of international incoming calls by legal channels on licensees’ networks, a reliable official told The news tribe.
The PTA has slashed the APC rates from 5.5 cents to 2.75 cents on incoming international calls recently aimed at providing benefits to the telecom operators and curbing grey traffic from different countries.
The authority will waive off APC rates in consultation with stakeholders and ministry aimed at passing on benefits to customers for low international call facility, a PTA official said on the condition of anonymity. “The authority is mulling to zero APC rates by the next fiscal year in order to support telecom operators to strengthen their financial position and introduce new technologies in the country like 3G with fresh investment.”
The new APC rate will also increase the traffic of international incoming calls from different countries but also enhance the revenues of the operators tremendously who have been struggling to earn revenues through LDI calls.
APC rate was reduced to 5.5 cents per minute in July 2010 from 7.5 cents in February 2009. It was stood at 5 cents in 2008 and 2.5 cent per minute in 2007 and 2006.
APC is the part of International Settlement Rates (ASR). It has been highest in the region as majority of the country has waived off it completely. The APC charge for calls terminated on the LL [local loop] operator’s network is passed on to the LL operator, while APC on calls terminated on cellular operators is passed on to the USF.
On account of APC for USF, PTA was collecting Rs.12 million/month in January, 2005, Rs.85 million in October, 2007, Rs.86 million in May, 2008 while Rs.1083 million/month and Rs.1564 million/month in Feb, 2009 and July, 2009 respectively. In fact, as data shows, changes in the APC and ASR over the period of time have helped in increase of revenues to the USF Fund.
Besides, the slash in APC rates will also decline the grey traffic international calls, which are operated illegally by unauthorized networks with their reduced international call service.
PTA conducted nearly 35 successful raids on grey traffickers so far which included small and big gateway operators.
These illegal exchanges include VOIP (Voice-Over Internet Protocol) that uses a computer; GSM (Global System for Mobile) gateways; WLL (wireless local loop) phones or mobile SIMs. Besides, licensed taxes also found committed providing international call services by rerouting as local calls for pocking handsome revenues and avoiding taxes.
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