P a k i s t a n T e l e c o m m u n i c a t i o n
A u t h o r i t y
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The stakeholders are requested to respond to the specific issues raised in this consultation paper. Your response may be sent on or before October 16, 2008 preferably through email to:
Mr. Aadil Umar Khalil Deputy Director (e) [email protected] Mr. Imran Shafi Rana Deputy Director (e) [email protected]
Consultation paper on International Roaming Tariffs
CONTENTS
CHAPTER 1: INTRODUCTION ............................................................................................... 1 Mobilink ................................................................................................................................................................ 1 Ufone .................................................................................................................................................................... 1 Telenor .................................................................................................................................................................. 2 Warid .................................................................................................................................................................... 2 China‐Mobile ......................................................................................................................................................... 2 About Instaphone ................................................................................................................................................. 2
Pakistan’s International Roaming Market ......................................................................................... 3 Pakistan’s Roaming Prices from 2005 till 2008 ..................................................................................................... 4
CHAPTER 2: INTERNATIONAL ROAMING ............................................................................. 6 Definition .............................................................................................................................................................. 6 Types of roaming .................................................................................................................................................. 6
National roaming .............................................................................................................................................. 6 International roaming ....................................................................................................................................... 6
How does roaming work? ..................................................................................................................................... 7 International Roaming Call Scenarios ................................................................................................................... 7
Commercial Aspects of International Roaming Agreements ............................................................. 8 Roaming Agreements............................................................................................................................................ 8 International Roaming Billing & Payment ............................................................................................................. 8 Dispute Resolution for Wholesale Roaming Charging .......................................................................................... 9
CHAPTER 3: CASE STUDIES ON INTERNATIONAL ROAMING REGULATION ......................... 10
Imposed Regulations ...................................................................................................................... 10 1. European Union ......................................................................................................................................... 10
Study conducted by EU ................................................................................................................................... 11 Commission’s Findings ................................................................................................................................... 11 Scope of Regulation ........................................................................................................................................ 11 Stance of GSM Association on Proposed EC Regulation on International Roaming ...................................... 12 EC Regulation on International Roaming ........................................................................................................ 13 Transparency of International Roaming Charges ........................................................................................... 13
2. Arab Region ................................................................................................................................................ 14 Scope of the Study .......................................................................................................................................... 15 Study Findings................................................................................................................................................. 15 Study Proposals .............................................................................................................................................. 15 Final Result ..................................................................................................................................................... 16
Self Regulations ‐ Roaming Alliances and Groups ........................................................................... 17 Existing Roaming Alliances .................................................................................................................................. 17
1. Bridge Mobile Alliance ........................................................................................................................... 17 2. FreeMove Alliance ................................................................................................................................. 19 3. Middle East Telecom Alliance ................................................................................................................ 20
4. Conexus Mobile Alliance ....................................................................................................................... 21 5. Asia Mobility Initiative .......................................................................................................................... 22 6. Starmap Alliance ................................................................................................................................... 23
CHAPTER 4: BENCHMARKING OF INTERNATIONAL ROAMING TARIFFS ............................. 24
Benchmark Scenario 1 – Charges Paid by Pakistani Roamer while Roaming Abroad vs. Proxy Equivalent Charges ......................................................................................................................... 25
1. Kingdom of Saudi Arabia ........................................................................................................................ 25 2. United Arab Emirates (UAE) .................................................................................................................. 29 3. Malaysia ................................................................................................................................................. 32 4. United Kingdom ..................................................................................................................................... 34 5. Hong Kong .............................................................................................................................................. 36 6. USA ........................................................................................................................................................ 39
Benchmark Scenario 2 – IR Tariffs of Pakistani Subscribers vs. IR Tariffs offered by other countries for visiting Pakistan ........................................................................................................................ 41
Pakistan vs. Saudi Arabia ................................................................................................................................ 41 Pakistan vs. UAE ............................................................................................................................................. 41 Pakistan vs. Malaysia ...................................................................................................................................... 42 Pakistan vs. United Kingdom .......................................................................................................................... 42 Pakistan vs. Hong Kong ................................................................................................................................... 43 Pakistan vs. USA.............................................................................................................................................. 43
Benchmark Scenario 3 ‐ Roaming Comparison – Pakistan vs. Regional Countries IR Tariff for Same Destinations ................................................................................................................................... 44
Roaming to Saudi Arabia ................................................................................................................................ 44 Roaming to UAE .............................................................................................................................................. 45 Roaming to Malaysia ...................................................................................................................................... 45 Roaming to United Kingdom .......................................................................................................................... 46 Roaming to Hong Kong ................................................................................................................................... 46 Roaming to USA .............................................................................................................................................. 47
Conclusion of Roaming Comparisons .............................................................................................. 47
CHAPTER 5: OTHER ISSUES OF INTERNATIONAL ROAMING IN PAKISTAN ......................... 50 Consumer Awareness on International Roaming Tariffs ................................................................................ 50 Multiple Roaming Charges / Network Selection ............................................................................................ 51 Display of A‐Party number and Ring Back Announcements ........................................................................... 51 Billing Transparency ....................................................................................................................................... 52
Pakistan’s Roaming Prices between 2005 ~ 2008 ............................................................................................... 53 Currency Conversion Rates Used ........................................................................................................................ 54 Pakistan Operators and Foreign Operators Roaming Shares (as of June 2008) ................................................. 55
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CHAPTER 1: INTRODUCTION
Pakistan’s cellular mobile market is a fairly competitive market due to low tariffs, high consumer
demand, intense competition and well defined Government’s policies. The growth in cellular mobile
market can also be attributed to timely launch of two new cellular operators, renewal of an expiring
license, expansion in networks, introduction of mobile number portability and affordable handset prices.
As a result of these factors, cellular market has been growing at an astounding pace thus adding about
two million subscribers per month. At the end of August 2008, the mobile tele‐density stood at 55.6%
(89.56 million1 mobile subscribers) boosting the overall telecom density in the country to 59.8%2.
Cellular mobile has 18 times more subscribers than fixed‐line services.
The mobile market of Pakistan comprises of six (6) players, a quick brief of the companies in the industry
is as under:
Mobilink Pakistan Mobile Communication Ltd. (PMCL) – brand name Mobilink, a subsidiary of Orascom Telecom
Egypt, started its operations in 1994. The company has the largest subscriber base in Pakistan of over 30
million3. Mobilink provides both postpaid and prepaid calling solutions to individuals, businesses and
corporate clients. In addition to providing voice communication, the company also offers value‐added
services including data, blackberry and international roaming. The company provides coverage
throughout Pakistan as well as over 120 countries on international roaming service4.
Ufone Pakistan Telecom Mobile Limited (PTML) ‐ brand‐name Ufone, is a wholly owned subsidiary of Pakistan
Telecom Company Ltd. (PTCL) ‐ fixed line incumbent and started its operations in 2001. The
management of the company is with Etisalat after PTCL’s privatization in 2006. Ufone’s subscriber base
is around 18.6 million5. Ufone provides both pre‐paid & post‐paid voice communication and
international roaming services. In addition, the company provides value added services like data and
1 PTA Telecom Indicators figures, August 2008 2 Ibid 3 Ibid 4 Mobilink website, http://www.mobilinkgsm.com, July 2008 5 PTA Telecom Indictors figures, August 2008
2
blackberry services. The company provides coverage across Pakistan and over 125 countries through
international roaming services6.
Telenor Telenor Pakistan is 100% owned by Telenor ASA and adds on to its operations in Asia together with
Thailand, Malaysia and Bangladesh. Telenor Pakistan launched its operations in March 2005 as the single
largest direct European investment in Pakistan. Telenor has a subscriber’s base of 18.3 million7 and
offers voice, data and value added services like mobile TV across Pakistan. Telenor Pakistan has
international footprint in 102 countries through international roaming services8.
Warid Warid Telecom is a joint venture between Abu Dhabi Group & SingTel Group. The company started its
services in 2005 and has grown to a subscriber base of 15.9 million9. The company offers voice and data
services for pre‐paid and post‐paid subscribers and has nationwide coverage as well as International
roaming facilities in 132 countries10.
ChinaMobile China Mobile Pakistan (CMPak), formerly known as “Paktel” is a 100% subsidiary of China Mobile. The
pioneering overseas set up of China Mobile came through acquisition of a license from Millicom to
operate GSM network in Pakistan. The company has a total customer base of 4.8 million11 and provides
nationwide voice services and international roaming services in 86 countries12.
About Instaphone Instaphone commenced its services in Pakistan in 1991. Instaphone is the only non‐GSM operator and is
providing mobile services on D‐AMPS system. Instaphone has the smallest customer base of 0.32 million
only with coverage in 185 cities across Pakistan and does not provide International Roaming services.
6 Ufone website, http://www.ufonegsm.com, July 2008 7 PTA Telecom Indictors figures, August 2008 8 Information provided by Telenor Pakistan, July 2008 9 PTA Telecom Indictors figures, August 2008 10 Information provided by Warid Telecom Pakistan, July 2008 11 PTA Telecom Indictors figures, August 2008 12 GSMA Website – Pakistan Statistics on Roaming, July 2008
3
Pakistan’s International Roaming Market After de‐regulation & issuance of two new mobile cellular licenses, mobile sector of Pakistan outpaced
many regional countries in terms of subscriber’s growth, introduction of value added services and
coming up with innovative calling packages. CAGR of mobile subscribers stood at 102% as of August
2008 since the year of de‐regulation‐2004 (July 04 to Aug.08 (four years)). However the same growth
pattern could not be followed in International roaming sector of the market despite the growth in
overall real GDP, pattern of mobile usage and growth in the international travel. Pakistan’s outbound
roaming subscribers are approximately 100,00013 as of July 2008 which in percentage terms is far less as
compared to international passengers travelling outside Pakistan. As per statistics gathered from Civil
Aviation Authority, total passenger traffic outside Pakistan was 3.56 Million during the year 2006‐07.
Similarly, international travelers who visited Pakistan were 3.66 Million (including transit). From the data
available with civil aviation authority, it can be inferred that Pakistan has a huge potential for
international roaming service which to‐date has not been explored.
Five out of six cellular mobile operators are offering International Roaming services to their subscribers.
While reviewing international roaming tariffs, no significant changes were observed as in case of
domestic tariffs. International roaming services can be termed as bottleneck service which exhibits
monopolistic characteristics. The cellular mobile operators have dominance in international roaming
services and have been acknowledged internationally.
13 Un‐official figures of five mobile operators providing roaming services, July 2008
4
Pakistan’s Roaming Prices from 2005 till 2008 PTA, in order to assess level of international roaming tariffs, collected international roaming tariffs of
major destinations such as USA, UK, KSA & UAE and placed it on PTA’s website for consumer
awareness14. During the year 2006, PTA again carried out internal research in which it observed that
there was no significant change in International Roaming tariffs except for UAE where outgoing local call
tariffs were substantially increased from PKR 4.80 – 5.60
to PKR 18 –78 per minute. In almost all the countries
roaming tariff either increased or remained the same
during this time. For a quick glance on movement of IR
Tariffs, a graphical presentation is shown for USA. It is
also clear from these graphs that the rates have
increased or remained same. Detailed tariff comparisons
between years for certain other countries are attached
as ANNEXURE‐A.
14 Visit Pakistan Telecommunication Authority website at http://www.pta.gov.pk
0
50
100
150
2004 2005 2008
Local Call Charges in USA while at Roaming
Mobilink Ufone Telenor Warid
050100150200250300350
2004 2005 2008
Call to Pakistan from USA while at Roaming
Mobilink Ufone Telenor Warid
0
20
40
60
80
100
120
140
160
2004 2005 2008
Incoming Calls in USA while at Roaming
Mobilink Ufone Telenor Warid
5
From the above, it is evident that the cellular mobile operators have generally increased their outgoing
tariffs as well as incoming tariffs. Although increase in tariffs can be partially attributed to exchange rate
fluctuations since majority of the operators are offering International roaming tariffs in US dollars but it
is worth pointing out that there seems less incentive for the cellular mobile operators to reduce
International tariffs for their subscribers.
Over the past several years, Pakistan’s economy has recorded rapid growth rates in Asia, real GDP in the
last five years remained above 6% level15. Use of mobile phones has become a necessity and primary
means of communication. International travel has increased many folds in the recent past and around 7
million people flew in and out of Pakistan in the year 2006‐0716. Despite the growth in economy and
number of international travelers, the percentage of roaming subscribers in Pakistan is abysmally low.
The total roaming subscriber’s of all the five operators is about 0.12% of the total subscriber’s base. At
large, subscribers are willing to opt for roaming services but extremely high roaming rates is one of
many factors contributing towards these lower figures of the roaming subscribers. In addition, operators
see less incentive to focus towards this segment of their service offering.
Question no‐1: The cellular mobile industry has shown phenomenal growth over the past few years. However, no major uptake has been observed regarding international roaming subscription. The operators as well as consumers are requested to point out probable reasons for low roaming subscriptions?
15 Pakistan’s GDP growth to stay between 5.5% ‐ 6.0% range in FY 08: SBP Report, State Bank of Pakistan, press release May 31, 2008 16 Civil aviation authority, Pakistan figures from their website, http://www.caapakistan.com.pk, July 2008
6
CHAPTER 2: INTERNATIONAL ROAMING
Definition “Roaming" is the term that describes a cell phone's ability to make and receive calls outside the licensed
area or where the service provider does not have adequate coverage. Roaming occurs when a
subscriber of one wireless service provider uses the facilities of another wireless service provider. This
second provider has no direct pre‐existing financial or service agreement with this subscriber to place or
receive a call.
According to ITU, roaming means “a service allowing cellular subscribers to use their handsets on
networks of other operators or in the other countries”.
Similarly, the GSM World Association has defined roaming “as the ability for a cellular customer to
automatically make & receive voice calls, send & receive data, or access other services when travelling
outside the geographical coverage area of the home network, by means of using a visited network”.
Types of roaming
National roaming This type of roaming refers to the ability to move from one mobile operator to another in the same
country. For example, a subscriber of T‐Mobile USA who is allowed to roam on AT&T Mobility's service
would have national roaming rights.17
International roaming
International roaming is the ability to use cellular mobile service when abroad on holiday or on business.
Since the cellular mobile operator does not have a network coverage in the country where a user is
traveling and whenever a user makes or receives a call, it will imply that a user is ‘roaming’ on the
network of an operator in that country.
17 Wikipedia, The free encyclopedia, July 2008
7
How does roaming work? When roaming internationally, a user logs on to a network of a mobile phone carrier in destination
country with whom home cellular operator has a ‘roaming agreement’. A roaming agreement is a
commercial agreement between home cellular mobile service provider and a roaming partner mobile
carrier that allows home users to access the network of the roaming partner’s mobile services.
Since the licenses are awarded on a country‐wide basis, the cellular mobile operators do not have a
mobile network in the country where its users are travelling to ‐ though they may belong to the same
group as a foreign provider. When a user switches on phone in the foreign country, the mobile phone
picks up the radio signals of one of the operators in that country with which her home country operator
has a roaming agreement. This local operator will then 'authenticate' mobile number of user with home
operator (e.g. it will check whether the user is valid customer and is allowed to roam, etc.). Once the
authentication is received, the user can make and receive calls.
International Roaming Call Scenarios
Outgoing Calls
When a user makes an outgoing call, the foreign network in the visited country analyses the dialed
number and decides how best to route the call.
Local Call: If it is a local call, then the foreign host
operator will hand‐over a call to a local operator.
Call to Home Country: In case of an international
call, the foreign host operator passes the call via
international transit to home operator which then
terminates the call either on cellular or on a fixed‐
line network.
A B
8
Incoming Calls
When a user receives a call while on international
roaming, the call will be routed from the home
country. Since the home operator possesses
information about its user, it will forward the call
to that operator whose network is being used by
the user in the visited country. The visited
network will then connect the call with the user.
Commercial Aspects of International Roaming Agreements
Roaming Agreements The commercial aspects of roaming are negotiated between the roaming partners and are stipulated in
roaming agreements. The GSM Association broadly outlines the content of such roaming agreements in
standardized form for its members18. For the legal aspects of authentication, authorization and billing of
the visiting subscriber, the roaming agreements typically can comprise minimal safety standards, e.g.
location update procedures, financial security or warranty procedures19. All charges from using a mobile
phone abroad are coordinated through the user’s home operator. This allows callers to pay for
international roaming services via their ordinary phone bill, rather than receiving separate bills from
each host operator when travelling. Coordination of billing is made possible through roaming
agreements between operators, in which the wholesale rates are also determined.
International Roaming Billing & Payment When a user uses his mobile phone while roaming, the foreign operator keeps a record of his incoming
as well as outgoing calls. For international outgoing calls to home country, the foreign operator will
charge home operator a wholesale rate for taking a call on its network. The foreign operator will have to
pay for the international transit and this charge will be passed on to the home operator.
When making a call abroad:
18 Sample roaming agreements can be downloaded from GSM Association website at http://www.gsmworld.com/documents/index.shtml 19 Wikipedia, The free encyclopedia, July 2008
B
9
• The home operator will pay host operator with a wholesale rate for allowing the roamer to
roam on its network (make & receive calls).
• The roamer will be charged with all these costs, plus a profit margin applied by its home
operator.
For receiving a call while roaming abroad, the home operator will pay international transit fees to pass
this call to the roaming country. The foreign operator will treat it as an international call and will charge
a wholesale termination rate for terminating the call on its network. International roamer will pay
international transit fee, wholesale charge and an additional profit margin applied by the home
operator. However, the calling party will pay normal on‐net or off‐net tariffs.
When receiving a call abroad:
• The calling party will pay the standard on‐net or off‐net domestic rate as the case may be.
• Roamer’s home operator will pay for the international transit plus a wholesale roaming charge.
• The roamer will be charged with all of its home operator’s costs for the call plus a profit margin.
Dispute Resolution for Wholesale Roaming Charging When a dispute arises in the billing between roaming partners, the mechanism for resolution is covered
under the GSMA roaming agreements usually under the Rules of Conciliation and Arbitration of the
International Chamber of Commerce (ICC).
10
CHAPTER 3: CASE STUDIES ON INTERNATIONAL ROAMING REGULATION Mobile phone users face a wide range of fees and tariffs in shape of roaming charges when they travel
from their home country to another country. Rather than paying these fees, many mobile phone users
opt to pick up a local SIM card when they land in another country. Switching to a local SIM card mean
lower rates while making or receiving calls. To reduce these roaming rates so as to encourage users to
use their mobile phones, regulators and operators around the world have adopted certain approaches.
In this section, few case studies on two types of tariff regulations on international roaming (imposed &
self regulated) will be looked into.
Imposed Regulations
1. European Union In 2004‐05, EU initiated consultation on regulating prices of mobile roaming services in the Single
European Market after receiving complaints from different stakeholders. The stakeholders complained
that retail prices for international roaming in Europe were unjustifiably very high and showed no signs of
decrease in the past. Although the European Parliament held a public hearing on international roaming
charges but no steps were taken by the mobile industry to rectify the situation. The Commission also
gave a number of warnings to the industry in relation to high prices for roaming and also initiated sector
inquiry on international roaming regarding high wholesale charges but no major breakthrough was
observed.
The Commission also attempted to stimulate competition in the market by enhancing consumer
transparency through the publication of a consumer‐oriented website in October 200520. The website
contained roaming prices, and the web addresses where operators published their international
roaming tariffs. The site not only corroborated the fact that the charges were very high, but also showed
a range of prices across the EU that could not be justified for calls with identical characteristics in terms
of quality, time of day and duration. On 20th February 2006, the Commission called for comments on the
form of regulation that whether wholesale or retail international roaming charges or both should be
regulated.
20 http://europa.eu.int/information_society/roaming
11
Study conducted by EU In order to evaluate perception of Europeans about international roaming charges and how much
international roaming service is used by them when traveling abroad, the EU Commission initiated
Eurobarometer study in which 25,000 people were interviewed. During the study, it was revealed that
Europeans relied very heavily on international roaming services. The survey results are as under:
• 79% of EU citizens own a mobile phone
• 90% of the users opt for international roaming services while travelling abroad
• 63% of roamers used their cell phones lesser while abroad
• 15% either didn’t take their phone abroad or switched it off
• 21% users only relied on text messages
• 81% of the Europeans believed that cost was the biggest deterrent in international roaming
• 59% of the users were willing to use international roaming service if prices were lower
• 43% of the Europeans did not know the prices they paid for roaming
• 70% of the users supported EU action in lowering down IR prices within the EU region
During the survey, it was observed that the cellular mobile users have to pay Euro 4 to 6 for a four (4)
minute call and in some instance the call charges exceeds to Euro 12 within the Member States.
Commission’s Findings While reviewing European international roaming market, the Commission observed that EU roaming
markets were imperfectly competitive, pricing practices were not transparent, customers’ awareness of
billing (whether they will be billed per second or per minute) and additional charges (such as taxes or
fees) was severely limited. Retail charges were excessive due to the high wholesale charges levied by
visited country operators and also, in many cases, from high retail mark‐ups imposed by home network
operators. Although the industry proclaimed that it had reduced wholesale roaming charges but it was
observed by EU that reductions in wholesale roaming charges were not passed to customers in the form
of cheaper retail charges.
Scope of Regulation Initially, the Commission proposed that the regulation would apply to three types of roaming calls:
calling home from the visited EU country, making a local (national) call within the visited EU country and
calling to a third EU country while roaming. The regulation proposed “Home Pricing” approach in which
12
it proposed to “peg” retail roaming prices to the customer’s home prices for comparable domestic
mobile services. For example, a Belgian subscribers roaming in Spain and making a local call to a Spanish
number would be charged a rate not exceeding the rate (as charged by his home network) for a local call
in Belgium. Similarly, the customer making a call back to Belgium from Spain would be charged a rate
not exceeding the rate (as charged by his home network) for an international call to Spain from Belgium.
The regulation also intended to abolish retail charges for calls received by subscribers traveling in the
Member States.
The Commission received responses from the market players, European Regulators Group (ERG),
national regulatory authority, ministries, government departments, trade associations and from
individual consumers.
The proposed regulation was welcomed by the national ministries / regulatory authorities, consumer
and user associations and by some smaller mobile operators who saw themselves at a disadvantage due
to their limited bargaining power at wholesale level (because they were not in a position to negotiate
better wholesale rates). On the other hand, the associations representing operators (the GSM
association, BITKOM (German e‐communications and new media association) and VAT (Australia
telecom operators association)) vehemently opposed the proposed regulation.
Stance of GSM Association on Proposed EC Regulation on International Roaming GSM Association, in response to EC proposed regulation submitted that the EU industry was highly
competitive and the cost of voice services (which include international roaming) has consistently fallen
and the industry was delivering sustained value to consumers. GSM Association was skeptical about the
need for regulation since the Commission did not provide any evidence of why it considered
intervention necessary. GSM Association was of the view that un‐intended consequences of hastily
prepared legislation would put investment at risk since international roaming service was not a
standalone service and it involved two different service providers.
13
EC Regulation on International Roaming On 27th June 2007, European Union passed a regulation on International roaming tariffs setting retail &
wholesale international roaming tariffs to be applicable for three years. The regulation also laid down
rules aimed at increasing price transparency and improving the provision of information on IR tariffs to
users.
The EC, together with national regulators, will monitor the Regulation's implementation closely during
this implementation period. The Commission will also assess the regulation within 18 months to
determine whether or not to prolong the regulation and whether it needs to intervene again to also
include SMS and data roaming. Following are the wholesale and retail charges as determined by the
European Commission for roaming within the EU Member States:
2007 30th August 2008 30th August 2009
Wholesale Charge Euro 0.30 per min. Euro 0.28 per min. Euro 0.26 per min.
Retail Charge:
Outgoing Calls Euro 0.49 per min. Euro 0.46 per min. Euro 0.43 per min.
Incoming Calls Euro 0.24 per min. Euro 0.22 per min. Euro 0.19 per min.
Transparency of International Roaming Charges The EC also observed that pricing practices followed by European mobile operators were complex and
international roamers seldom knew how much they would pay while on roaming. EC was of the view
that following transparency obligations will allow consumers to indentify easily the best roaming deals
available and also know the prices they have to pay while they are at roaming.
The EC laid following transparency rules which shall be followed by the cellular mobile operators:
1. To alert a roaming customer to the fact that he will be subject to roaming charges when making
or receiving a call, each home provider shall automatically provide by means of a Message
Service, (without undue delay and free of charge), with basic personalized pricing information
on the roaming charges (including VAT) that will apply to making and receiving of calls
(applicable in the visited country). This basic personalized pricing information shall include the
14
maximum charges the customer may be subject to under his tariff scheme for making calls
within the visited country and back to the Member State of his home network, as well as for
calls received. It shall also include the free of charge numbers.
2. Customers shall have the right to request and receive, free of charge, more detailed
personalized pricing information on the roaming charges that apply to voice calls, SMS, MMS
and other data communication services, by means of a mobile voice call or by SMS. Such a
request shall be to a free of charge number designated for this purpose by the home provider.
3. Home providers shall provide all users with full information on applicable roaming charges, in
particular on the Euro‐tariff, when subscriptions are taken out. They shall also provide their
roaming customers with updates on applicable roaming charges without undue delay each time
there is a change in these charges.
2. Arab Region The Arab region covers 22 Arab countries, with a total population of over 299 million. There are 35.4
million mobile subscribers in the region, served by 45 mobile operators. This equates to 11.8 mobile
subscriptions per 100 inhabitants (compared to 8.87 fixed line subscribers per 100 inhabitants).
The Arab Regulators’ Network (AREGNET) also conducted a study to assess mobile roaming prices in
Arab countries. The Egyptian regulator, the National Telecom Regulatory Authority (NTRA) led the study.
The objective was to review mobile roaming charges across operators in the Arab region, and identify
possible solutions and regulatory actions to address problems identified with pricing for mobile roaming
services.
15
Scope of the Study The study looked at prices for two types of roaming call:
• International roamed calls: For the purpose of the study this was limited to calls to the calling
party’s home country. The called person might be a subscriber on the same home mobile
network as the calling person, or a fixed network subscriber
• Local roamed calls: A local roamed call was defined as a call made by a subscriber roaming on a
visited network to another person in the country of the visited network. That person might be a
mobile subscriber on the visited network, a mobile subscriber on another mobile network in the
same country, or a fixed network subscriber in the same country.
Study Findings The study found that:
• Prices charged for mobile roaming were high.
• Roaming charges in the region were not transparent. The details of roaming charges were not
widely known, and were difficult for users to discover.
• Roaming charges changed frequently. This made it more difficult for subscribers to know what
they would pay for a roamed call.
• There were large differences in mobile roaming charges between different networks offered for
the same country. In countries with more than one mobile operator, roamers are charged
differently depending on the network they were using.
The study identified the following apparent causes of these problems:
• Insufficient competitive pressure on operators in providing mobile roaming services at lower
prices.
• Strong disincentives on operators to negotiate lower wholesale prices. Operators were
concerned that lowering their roaming prices would reduce their revenue.
• Barriers to entry facing alternative operators.
Study Proposals The study proposed a combination of regulatory and non‐regulatory solutions to address these
concerns. These include:
16
• Providing information on roaming charges on the AREGNET website, to be updated every 6
months.
• National level reviews of the inter‐operator tariffs charged by mobile operators. These reviews
will be done by the national regulator in each country.
• A regulated intra‐Arab inter‐operator tariff, to apply to all operators in the region.
• Encouraging competition driven roaming deals between operators.
Final Result The study was submitted to the Council of Arab Ministers for ICT the Council in June 2006. In the
meeting, it was decided that Arab regulators, on the national level, shall put obligations on mobile
operators in their respective countries to:
I. lower their international mobile roaming retail tariff starting from January 2007 to a level that is
appropriate and acceptable in accordance with the global norms, with the possibility of
negotiating bilateral agreements between operators to lower the inter‐operator tariffs.
II. announce to the roamer, via SMS, the prices of international mobile roaming upon arrival in the
visited country.
17
Self Regulations Roaming Alliances and Groups To overcome higher roaming rates, alliances have been formed in recent years throughout the telecom
industry in Asia, Africa and Europe that are designed to appeal to corporate as well as leisure customers.
Mobile alliances are more common in Europe and Africa, this is mainly due to existence of more than
one network for one group e.g. Orange mobile have networks in UK, France and other countries,.
Similarly Vodafone has existence in many European countries. In addition, travel and roaming patterns
among European countries is different than many other parts of the world. European travels more
frequently within Europe; for instance ‘once a month’ and use their cell phones more frequently while at
roaming. These travel patterns and existence of more networks by one operator have fueled intra‐
operator alliances like FreeMove & Starmap alliance.
Similar patterns can be seen within Arab states which have resulted in ‘Middle East Telecom Alliance’.
With the formation of these alliances and partnerships, roaming rates within the alliance member
countries have dropped significantly. In addition, these alliances are helping in provision of Caller ID to
avoid unwanted calls, pre‐paid roaming, top‐up of the pre‐paid balance without carrying extra top‐up
cards or asking someone to do it for the roamer, provision of video roaming and above all flat‐rate data
packages while at roam.
In order to provide mobile users better roaming deals, following few alliances have been discussed
below;
Existing Roaming Alliances
1. Bridge Mobile Alliance Bridge mobile is an alliance encompassing partnership of eleven (11) tier‐one mobile operators of Asia
pacific and major global technology players with a combined subscriber base of 205 million. The alliance
was established in November 2004 through a special purpose vehicle (SPV), Bridge Mobile Pte. Ltd.
headquartered in Singapore.21
21 Bridge alliance company website www.bridgealliance.com, July 2008
The allian
pre‐paid a
asking som
Alliance BFormatioSubscribe Alliance M1. Airtel2. AIS m3. CSL m4. Maxis5. CTM m6. Globe7. Optus8. Singte9. SK Te10. Taiwa11. TELKO
Associate1. Ericss2. Nokia3. Nokia4. Qualc
Services O1. Pre‐p2. Data r
22 Bridge a
ce enables its
accounts whi
meone in the
Basic Fact Shen: ers Base:
Member Ope, India
mobile, Thailanmobile, Hong Ks, Malaysia mobile, Macae Telecom, Phs, Australia el mobile, Sinlecom, Koreaan mobile, TaOMSEL, Indon
e Members son a a Siemens comm
Offered aid voice roaroam
lliance compan
s member op
le roaming in
eir home coun
eet November 205million
rators
nd Kong
au hilippines
gapore a iwan nesia
ming
ny website ww
perators’ pre‐
n any of the m
ntry to activat
2004 approx.22
ww.bridgeallian
paid subscrib
member coun
te a top‐up.
nce.com, July 2
bers to conve
ntries without
2008
niently and q
t carrying ext
uickly top‐up
tra top‐up car
18
p their
rds or
2. FThe FreeM
covers ov
members
The allian
operation
Liechtens
Switzerlan
and Mold
Alliance BFormatioSubscribe Alliance M1. Orang2. T‐Mo3. TIM C4. Telia S5. Mobis6. Amen. Services o1. Voice2. Data
Recently
other serv
alliance c
customer
23 FreeMov24 Ibid
FreeMove AlMove alliance
ver 370 millio
’ footprint inc
nce operator
ns in Austria,
tein, Lithuan
nd and UK. O
ova and USA
Basic Fact Shen: ers Base:
Member Opege Mobile, SAbile InternatiCellular SA, ItaSonera mobilstar, Belgiumna (France Te
offered: Roaming Roaming (Inc
mobile allian
vices. The all
cooperation.
s. The focus o
ve Alliance we
lliance e was forme
n customers
cludes countr
rs cover all t
, Belgium, Cz
nia, Netherlan
Outside the E
.23
eet 2003 370 million
rators A onal aly le networks, A lecom Group
luding blackb
nces FreeMo
iances have s
Their comb
of the alliance
bsite stats: htt
ed in Western
across 51 cou
ries across Eu
the major b
zech Republi
nds, Norway
European cou
n approx.24
AB
), Spain
berry services
ve and Bridg
signed a Mem
ined global
es’ cooperatio
tp://www.freem
n Europe in t
untries with w
urope, USA an
usiness cent
c, Denmark,
y, Poland, Po
untries, servi
s)
ge Mobile A
morandum o
footprint co
on would be t
movealliance.c
the year 200
worldwide m
nd Brazil.
ters of West
Finland, Fra
ortugal, Roma
ces are provi
lliance plan
f Understand
vers 62 cou
to make roam
com, July 2008
03 by four pa
ember opera
tern and Eas
nce, German
ania, Slovakia
ided in Croat
to cooperate
ding to estab
ntries and a
ming easier fo
8
artners. Free
ations. The all
stern Europe
ny, Hungary,
a, Spain, Sw
tia, Estonia, L
e on roaming
lish an allianc
about 575 m
or users when
19
Move
liance
with
Italy,
eden,
Latvia,
g and
ce‐to‐
million
n they
20
roam on the alliances’ members’ networks, and to provide multi‐national enterprise customers with
global services and one‐stop shopping capability across continents.25
3. Middle East Telecom Alliance Jordanian mobile service operator MobileCom joined forces with three regional operators in 2004
forming the first alliance of mobile operators in the MENA (Middle East, North Africa) region. The
alliance is first of its kind in the Middle East region and serves markets covering over 70 million people in
the region.
The alliance brings the market strength of its members to bear in supporting the rollout of unified
content and access services, including MMS and GPRS roaming, as well as unified support for EDGE class
high speed mobile Internet access across national boundaries. It also includes the establishment of
advanced roaming agreements, common content and application development resources and support
the availability of a common platform and portal offering. The most immediate benefits of the Alliance
agreement are smarter and easier roaming for pre‐paid voice services.
Alliance Basic Fact Sheet: Formation: 2004 Subscribers Base: 7 million approx.26 Alliance Member Operators 1. MobileCom, Jordan 2. Batelco, Bahrain 3. Qtel, Qatar 4. Wataniya Teleocm, Kuwait 5. Wataniya Telecom, Iraq 6. Wataniya Telecom, Algeria 7. Nawras Telecom, Oman Service Offered
1. Pre‐paid voice roaming 2. Data/Edge Roaming
25 FreeMove, Bridge Mobile Alliance teamup, News Article from Wireless Federation’s Telecom Paper, March 28, 2007. 26 World IT report 2006
These com
Qatar, Jor
4. CFormed in
video and
covers ap
conventio
Beyond ju
customer
the privile
place.
Alliance BFormatioSubscribe Alliance M1. Far Ea2. BSNL,3. MTNL4. Hutch5. PT Ind6. KT Fre7. NTT D8. Starh9. Smart10. TrueM
Service O1. Voice2. Data
27 Thailand
mpanies toge
rdan, Iraq, Alg
Conexus Mon 2006, forma
d data roami
pprox 190 mil
onal roaming
ust roaming,
s as they roam
ege of gettin
Basic Fact Shen: ers Base:
Member OpeasTone Teleco, India L, India hison Telecomdosat Tbk, Indeetel Co, SoutDoCoMo, Japaub, Singaporet Comm. Inc.,Move, Thailan
ffered & Video RoaRoaming
d’s TrueMove jo
ther covers t
geria, Oman,
obile Allianally Asia‐Pacif
ng in the reg
llion mobile s
via GSM/GPR
most membe
m in another
ng their SIM c
eet: April 2006 190 million
rators om, Taiwan
m, Hong Kongdonesia th Korea an e , Philippines nd
aming
oins Conexus A
he Middle Ea
Iraq, Tunisia
ce fic Mobile All
gional countr
subscribers a
RS and/or W‐
er operators
member ope
card replaced
n approx.27
g
Alliance – Press
st region, wit
and Jordan in
liance, offers
ries. The allia
nd has enha
CDMA netwo
are providing
erator’s netw
d activated if
s release by Co
th networks d
n Africa.
customers of
ance has its f
nced membe
orks in the reg
g caller ID, a
ork. In additi
f they lose th
onexus mobile
deployed in B
f its member
footprint in n
ers’ competiti
gion.
nd short‐cod
onal member
heir original
alliance – June
Bahrain, Kuwa
s low priced v
nine (9) coun
iveness in off
e services to
rs’ customers
ones in mem
e 19, 2008
21
ait,
voice,
ntries,
fering
o their
s have
mbers'
22
The alliance members have launched Asia’s first pay per day data rooming flat‐rate in 1st Quarter 2008.
With the increasing popularity of mobile broadband (HSDPA) roaming in the region, it is an important
milestone where customers do not need to keep track of their usage anymore.
5. Asia Mobility Initiative Asia Mobility Initiative (AMI) is another alliance in the region. The alliance was formed in 2003 and has a
total membership of six mobile operators in the region providing roaming within the partner’s countries.
The AMI is focused specially towards sharing mobile data roaming and aiming at enhancing user
experience in inter‐operability.
Alliance Basic Fact Sheet: Formation: April 2003 Subscribers Base: 58 million approx.28 Alliance Member Operators 1. CSL, Hong Kong 2. Maxis, Malaysia 3. MobileOne, Singapore 4. Smart, Philippines 5. Telstra, Australia 6. IDEA Cellular, India
Service Offered 1. Voice Roaming 2. Data Roaming AMI is not an exclusive group. Each member is free to both maintain and enter into new bilateral
arrangements with other operators and third parties where necessary.
28 IDEA Cellular is now part of ‘Asia Mobility Initiative Alliance’ News article September 19, 2007
6. SStarmap
roaming s
alliance F
The main
topping‐u
Alliance BFormatioClosure: Subscribe Alliance M1. Amen2. O2, G3. O2, U4. O2, Ir5. One, A6. Panno7. SONO8. Sunris9. Telen10. Wind, Service O1. Pre‐p2. GPRS
In 2006 Sp
in the all
Europe.30
29 Financia30 Starmap
Starmap Allalliance, form
services by a
reeMove and
advantages
up by voucher
Basic Fact Shen:
ers Base:
Member Opena, Spain ermany, K reland Austria on GSM, HunOFON, Denmase mobile, Swor Mobile, No, Italy
ffered aid voice roaroaming
panish teleco
liance, separ
Finally the m
l Times Ltd. 20p mobile allianc
liance mally Mobile
a group of Eu
d to combat V
of starmap c
rs.
eet: October 202007 46 million a
rators
gary ark witzerland orway
ming
om giant Telef
ated itself fr
mobile Alliance
004 ce fades as O2
e alliance, wa
uropean GSM
Vodafone whi
customers wa
003
approx.29
fonica acquir
rom the Star
e was shut do
leaves galaxy,
as formulate
M operators.
ch owns a pa
as no‐prefix
red O2. Conse
rmap alliance
own at the be
The Independ
d in Octobe
Starmap wa
an‐European n
dialing when
equently O2,
e leaving the
eginning of 20
dent business, O
r 2003 to of
as setup in re
network of su
abroad (CAM
which was th
e alliance thi
007.
October 18, 20
ffer pan‐Euro
esponse to a
ubsidiaries.
MEL roaming
he largest ope
inly spread a
006.
23
opean
a rival
g) and
erator
across
24
CHAPTER 4: BENCHMARKING OF INTERNATIONAL ROAMING TARIFFS31
For an in‐depth review of the international roaming tariffs of Pakistan, roaming tariffs of cellular mobile operators have been gathered and analyzed in this consultation paper. Following three call types have been considered for the purpose of benchmarking:
i. Outgoing local call by international roamer to a visited country network while roaming in the
visited country.
ii. Outgoing calls by international roamer to a home country network while roaming in the
visited country.
iii. Incoming calls to international roamer from home country network.
To see where Pakistan stands in terms of these rates, direct comparison of these roaming tariffs has
been conducted focusing on the following three types of benchmark scenarios:
Benchmark Scenario 1 – Charges Paid by Pakistani Roamer while Roaming Abroad vs. Proxy Equivalent
Charges
In this comparison:
a. Tariffs for Outgoing local calls to a visited country network are compared with mobile
local call tariffs prevailing in the visited country (proxy equivalent charges).
b. Tariffs for outgoing roaming calls to a home country network are evaluated with mobile
international long distance tariffs for calling home country network from visited country
(proxy equivalent charges).
c. Tariffs for incoming calls from home country are compared with international outgoing
tariffs offered by Pakistan’s cellular mobile operators for calling visited country network
(proxy equivalent charges).
Benchmark Scenario 2 – IR Tariffs Applicable to Pakistani Subscribers vs. IR Tariffs offered by other Countries’ Cellular Operators for visiting Pakistan
Benchmark Scenario 3 ‐ Roaming Comparison – Pakistan vs. Regional Countries IR Tariff for same Destinations
31 All tariff & rates are quoted in the currency of Pakistan (Pak Rupee). These rates have been converted into Pak Rupee from their respective currencies in Sept. 2008 at the prevailing currency conversion rates. All the currency conversion rates used are attached at Annexure‐B
BenchmAbroad
1. KAt prese
mobile
“Commun
Commissi
to “Zain
commenc
termed as
due to H
roaming.
country p
people wi
also perfo
estimated
each year
important
operators
Outgoing
The cellu
prepaid a
their su
equivalen
substantia
charging
call tariff
Rs.11.22 a
wish to vi
mark Scend vs. Proxy
Kingdom of nt, two ope
services
nications an
on” has also
n Saudi Ar
ced its service
s one of the i
Hajj and Um
Every year
perform Hajj a
ill perform ha
orm Umrah
d Umrah pilg
r. Thus, Saudi
t IR marke
s.
g Local Calls
ular mobile
as well as p
bscribers. P
nt to postpa
al difference
highest prep
s at Rs. 88.9
and 13.26 pe
sit Saudi Arab
nario 1 – y Equivalen
f Saudi Araberators are
in Saudi
nd Informat
awarded thir
rabia” which
es. Saudi Arab
important ma
rah season
people fro
and it is estim
ajj this year. B
especially in
grims are 40
Arabia can b
et for our
operators ar
postpaid roam
Prepaid tari
aid tariffs a
between th
paid as well a
92 per minut
er minute. Mo
bia and outgo
Charges Pnt Charges
bia offering cel
Arabia.
tion Techno
rd cellular lice
h has rece
bia market ca
arket for Paki
for internati
om all acros
mated that 16
Besides Hajj, p
Ramadan an
00,000 to 50
be termed as
cellular mo
re offering b
ming service
ffs are alm
nd there is
he two. War
as postpaid
te. Highest p
obily has also
oing local call
Paid by Pas
lular
The
ology
ense
ently
n be
istan
onal
ss the
60,000
people
nd the
00,000
one of
obile
both
s to
most
s no
id is
local
prepaid local
o introduced “
tariffs are Rs
akistani R
call tariffs
“Rihal” packa
s.19.38 per m
Mobil
STC 68.4
Mobily 68.4
020406080100
Post‐paid
7a
On‐net 11
Off‐net 11
F&F
0
5
10
15
20
25
Ou
M
STC
Mobily
0
50
100
Pre‐paid
Roamer w
prevailing in
age for foreig
inute.
link Ufone
4 81.32
4 81.32
Outgoing LoSubsc
ala Blue W
.22 7.1
.22 13.2
utgoing Loca
obilink Uf
70 92
70 92
Outgoing LSubs
while Roam
Saudi Arabi
gn subscribers
Telenor W
73.66 8
73.66 8
ocal Calls bycriber
Wave Sawa
4 11.22
26 11.22
7.64
al Calls in KS
one Telen
2.07 73.6
2.07 73.6
ocal Calls byscriber
25
ming
a are
s who
Warid CM P
88.92 22.8
88.92 22.0
y Roaming
a Rihal
2 19.38
2 19.38
4
A
nor Warid
66 88.92
66
y Roaming
ak
8
04
d
2
Internati
Internatio
roaming
minute c
customer
Rs.40.8 pe
to Pakista
M
STC
Mobily
050
100150200250
Pre‐pa
ional Outgo
onal outgoin
in KSA are
charged by
s. Mobily is
er minute for
an from Saudi
Mobilink U
173 21
173 20
aid‐Calls to Subs
ing Calls to P
ng calls to
as high as
Ufone fro
s charging a
r internationa
i Arabia.
Ufone Tele
10.19 168
07.56 166
Pakistan by scribers
Pakistan
Pakistan wh
Rs. 210.19
m its prep
a maximum
al outgoing c
enor War
8.15 202.1
6.05
Roaming
hile
per
paid
of
alls
ST
Mo
5
10
15
20
25
id
16 Peak
Off‐peak
FnF
051015202530354045
C
Mobilink
TC 171
obily 171
0
50
00
50
00
50
Post‐Paid
Mobily
40.8
36.72
26.52
Calls to Pakis
Ufone
186.2
183.9
d‐Calls to Paksubscri
Mobily Rihal
38.76
stan from KS
Telenor Wa
168.15 202
166.05 199
kistan by Roiber
26
Al Jawal
30.6
27.54
SA
arid CM Pak
2.16 130.72
9.88 105.64
oaming
Receiving
Internatio
Rs.96.14
standard
high as Rs
It is worsubstantRamadanbeen incbeen inc
Summary
The above
subscribe
to 3.58 ti
IR Call Typ
OG Local
OG Call to
Incoming
STC
Mobily
0
20
40
60
80
100
120
P
g calls withi
onal roamers
per minute f
international
s.14.00 per m
rth‐highlightially increasn. As of Junecreased to areased from
y Conclusion
e table shows
rs are paying
mes higher a
pe Pr
Call Lo
o Pak. ID
Calls ID
Mobilink U
92
48
Pre‐paid ReceRo
n Saudi Ara
s are payin
for incoming
l outgoing ca
minute.
ting that theed their intee 2008, locaas high as Rm Rs.15~43 to
n
s that interna
g exorbitant t
as compared
roxy Compari
ocal Call in KS
DD Calls to Pa
DD Calls to KS
Ufone Telen
92.07 96.14
92.07 56.8
iving Calls whoaming
bia
ng maximum
calls wherea
ll to KSA cost
ere cellular ernational roal call chargs.88.92 per o Rs.35~96.1
ational roami
tariffs as com
to local tarif
ison
SA
k. from KSA
A from Pak.
or Warid
4 88.92
1
hile at
m of
as a
ts as
mobile opeoaming tarifes where wminute. Sim14 per minut
ng service is
mpared to loc
ffs. Similarly,
Pak. R
22.04~
105.64
35.72~
S
M
0
20
40
60
80
100
120
erators (Ufoffs for Saudiwere Rs.17 tomilarly, incote.
quite expens
cal subscriber
internationa
ApplicablRoamer
~92.07 7
4~210.19 2
~96.14 1
Mobilink
STC 50.16
Mobily 50.16
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Post‐Pa
Mobilink
10.99
0
5
10
15
Out
one, Telenor Arabia durio Rs.23 per oming call ch
sive since inte
rs. Outgoing l
l outgoing ca
e to Local Subs.
7.14~19.38
26.52~40.8
10.40~14.00
Ufone Te
83.60 9
35.72 5
id Receivingroamin
k Ufone Te
12.99
tgoing calls t
r & Warid) ing the monminute hasharges have
ernational roa
local calls are
alls to Pakista
Multiples
3.09~3.58
3.98~5.15
3.43~6.87
elenor Warid
96.14 85.88
56.81 45.26
g Calls whileng
elenor Wari
14 10.4
to Saudi Ara
27
have nth of now e also
aming
e 3.09
an are
s
8
5
7
d CM Pak
42.56
42.56
at
id CM Pak
4 12
abia
28
5.15 times higher than standard IDD calls to Pakistan from KSA. The cellular mobile operators in Pakistan
are charging Rs.10 to Rs.14 per minute for IDD calls to KSA whereas the charges increase to as high as
Rs.96.14 per minute for incoming calls.
0
2
4
6
8
10
12
2. UTelecomm
Du in 200
per secon
10 as free
cost of AE
Outgoing
Postpaid s
Rs. 104.1
whereas t
85 per mi
and Du a
their loca
offering V
subscribe
packages
6.81
DU‐Pay as UGo
Out
United Arabmunications R
06. Du launch
nd. Connectio
e credit. On t
ED 165 and it
g Local Calls
subscribers a
2 per minute
the charges i
inute for prep
re charging R
l subscribers.
Visitor Line
rs / tourists.
are Rs. 11.18
6.81
U Etisalat Was
tgoing Local
b Emirates (Regulatory Au
ed its mobile
on charges fo
the other han
includes free
re paying a m
e for outgoin
ncrease to as
paid subscrib
Rs.6.81 per m
. Etisalat and
and Ahlan
Local call tar
8 and Rs. 9.32
11.18
el Du‐VisitorLine
l Calls in UA
(UAE) uthority (TRA
services in F
r “Pay As You
nd, Etisalat is
e credit of AED
maximum of
g local calls
s high as Rs.
bers. Etisalat
minute from
Du are also
for foreign
iffs of these
2 per minute r
9.32
Etisalat Ahla
E
A) of UAE has
ebruary 11, 2
u Go Classic”
s offering “W
D 10.
respectively.
Du
Etisala
0
50
100
150
Pos
an
D
E
s issued two c
2007 and is o
package are
asel” packag
Mobilink
68.4
at 68.4
st‐Paid Outg
Mobi
Du 70
Etisalat 70
0
50
100
Pre‐paid Ou
cellular licens
ffering prepa
AED 55 in wh
e which can
Ufone Tele
50.16 45
79.04 71
going Local cSubscriber
ilink Ufone
0 56.59
0 85.27
utgoing LocaSubscrib
ses to Etisala
aid tariffs at 0
hich user get
be purchased
enor Warid
5.4 59.28
.78 104.12
calls by Roamr
e Telenor
9
7 81.14
al Calls by Robers
29
at and
0.5 fils
s AED
d at a
CM Pak
53.96
2 85.12
ming
Warid
85.88
oaming
Internati
Maximum
Pakistan a
for postp
maximum
Rs.56.75 p
Receiving
For incom
Rs.75.24
from Pak
Rs.14.00 p
Peak
Off‐peak
0102030405060
Mobilik
10.99
02468
10121416
ional Outgo
m internation
are Rs. 171 a
aid and prep
m internation
per minute.
g calls withi
ming calls, th
per minute
kistan to UA
per minute.
Etisalat Wasel
54.48
42.9
Calls to Pa
inUfone T
9 8.99
Outgoing C
ing Calls to P
nal outgoing
and Rs. 173 p
paid subscribe
al outgoing
n UAE
he charges in
and interna
E are charge
Etisalat Ahla
56.75
56.75
akistan from
Telenor War
14 9.3
Calls to UAE
Pakistan
g tariffs for
per minute re
ers. Etisalat is
tariffs for P
ncrease to a
ational outgo
ed at a max
n DU
54.48
42.9
m UAE
rid CM Pak
37 12
E
r calls to
espectively
s charging
akistan at
s high as
oing calls
ximum of
8
Mobi
Du 34.
Etisalat 75.2
0
20
40
60
80
Post‐Pa
Du
Etisalat
050
100150200
Post‐P
Du
Etisalat
050
100150200
P
Du
Etisalat
0
20
40
60
80
Pre‐pa
ilink Ufone
.2 11.4
24 11.4
aid Subscribwhile at
Mobilink Ufo
171 101
171 142
Paid Subscribwhile a
Mobilink
173 1
t 173 1
re‐paid SubsPakistan wh
Mobilink U
31 1
31 1
aid Subscribwhile at
Telenor W
33 3
58.05 2
ers ‐ ReceiviRoaming
one Telenor
.08 91.89
.88 129.72
bers ‐ Calls toat Roaming
Ufone Tele
114.52
154.11 146
scribers ‐ Cahile at Roam
Ufone Telen
11.13
11.13 61.3
bers ‐ Receivt Romaing
30
Warid CM Pak
34.96 22.04
28.12 47.88
ing calls
Warid CM Pa
120.84 109.4
156.56 155.0
o Pakistan
enor Warid
.64 155.04
alls to ming
nor Warid
31 46.36
ving Calls
k
ak
44
04
31
Summary Conclusion
It can be concluded from the above that opting for Du’s Visitors Line or Etisalat’s Ahlan SIM is more
economical in comparison to availing international roaming services. International roaming subscribers
are paying local call tariffs in the range of Rs. 45.4~104.12 per minute whereas highest prepaid local call
tariffs are Rs.11.18. Outgoing local calls made by roaming subscribers are nine times higher as compared
to prevailing local call tariffs in UAE. Du and Etisalat are charging are charging Rs.54.48~56.75 per
minute from foreign subscribers / visitors besides offering lower tariffs for international friends and
family numbers whereas international roaming subscribers are paying as high as Rs. 173 per minute.
Incoming calls are five times higher in comparison to IDD calls to UAE from Pakistan.
IR Call Type Proxy ComparisonApplicable to
Pak. Roamer Local Subs. PKR
Multiples
OG Local Call Local Call in UAE 45.4~104.12 6.81~11.18 6.66~9.31
OG Call to Pak. IDD Calls to Pak. from UAE 91.89~173 54.48~56.75 1.69~3.05
Incoming Calls IDD Calls to UAE from Pak. 11.13~75.24 8.99~14.00 1.24~5.09
3. MIn Malays
promotio
rates on r
Outgoing
Outgoing
minute w
maximum
Internati
Calls to Pa
high as
Malaysian
standard
Pakistan (
On‐net
Off‐net
02468
1012
Out
Malaysia sia, the cellu
nal schemes
recharge of R
g Local Calls
local call ta
whereas Max
m local call tar
ional Outgo
akistan by int
Rs.306 per
n cellular mo
internation
(Rs.12.74).
Maxis
8.09
10.15
tgoing Local
ular mobile m
(such as disc
M 30).
riffs of Pakis
xis of Malay
riffs at Rs. 10.
ing Calls to P
ternational ro
minute. On
bile operator
nal outgoing
Digi
9.94
9.94
l calls in Ma
market is qui
counted IDD c
stan’s mobile
ysia is charg
.15 per minut
Pakistan
oamers cost a
the contrary
rs are offerin
g tariffs fo
Celcom
7.25
9.32
laysia
ite competiti
calls to S.A, 2
e operators f
ging
te.
as
y,
ng
or
Ce
Ma
Dig
Cel
Ma
Dig
1234
ive and the
20% extra bal
or IR subscri
Mobilink
elcom 68.4
axis 68.4
gi 68.4
0
20
40
60
80
Outgoin
Mobilink
com 265
axis 265
gi 265
0100200300400
Calls to Pa
operators ar
lance on card
ibers are as
Ufone Teleno
15.96
23.56 22.82
22.82
ng Local callsSubscribe
Ufone Tele
219
275 23
24
kistan by Ro
re offering se
d recharge an
high as Rs.7
r Warid CM
29.64
51.68
26
s by Roaminers
enor Warid
306
36 283
41
oaming Subs
32
everal
nd flat
0 per
Pak Jazz
70
6.6
ng
CM Pak Jaz
24
283.48
scribers
zz
2
0
2
4
6
8
10
12
Receiving
Internatio
charging h
Summary
IR Call Ty
OG Local
OG Call to
Incoming
Mobilink
seven tim
higher in
times exp
Mobilink
8
0
2
4
6
8
0
2
O
g calls withi
onal roamers
highest tariff
y Conclusion
ype
Call
o Pak.
Calls IDD
is charging h
mes higher as
comparison
pensive as com
Ufone
10
Outgoing Ca
n Malaysia
s are paying
of Rs.10.00 p
n
Proxy
Local C
IDD Calls to
D Calls to Mal
ighest local c
s compared t
to standard
mpared to no
Telenor W
8
alls to Malay
as high as R
per minute fo
y Compariso
Call in Malays
o Pakistan fro
Malays
aysia from Pa
call tariff of R
to local tariff
IDD calls to
ormal IDD call
Warid CM
3 6
ysia
Rs.59 per mi
r internationa
onPak. Roa
sia 22.82~
om
sia
219~3
ak 34~5
Rs.68.4 & Rs.7
fs. Internation
Pakistan from
s made to Ma
Pak
6
inute for inc
al outgoing ca
Applicable toamer Lo ~70 7.25
06 1
9 3
70 per minute
nal outgoing
m Malaysia.
alaysia from P
Mobilink
Celcom 58
Maxis 59
Digi
010203040506070
Rece
coming calls
alls to Malays
o cal Subs.
5~10.15
2.95
3~10
e for outgoin
calls to Paki
Similarly, inc
Pakistan.
k Ufone Teleno
34
36 58
58
eiving Calls w
whereas Ufo
sia.
Multiples
3.15~6.90
14.39~23.6
11.3~5.9
ng local calls a
istan are 23
coming calls
or Warid CM P
52
51
51.6
while at Roa
33
one is
s
0
63
and is
times
are 6
ak JazzTaSha
57
68
ming
alkawk
4. UOutgoing
Vodafone
per minut
charging
from pos
network.
packages
handset o
Internati
Pakistan’s
other han
Rs.81.27 (
for destin
which tar
Receiving
IR subscr
minute fo
020406080
100
3
16.
0
20
40
60
United Kingg Local Calls
e is charging
te. For intern
maximum loc
stpaid subsc
For compar
have been
offers.
ional Outgo
s IR subscribe
nd, O2 is offer
(60p) for mob
nations such
iff is as low as
g calls withi
ibers have to
or incoming
3 V
16.25
Calls to
3 Vodafo
.25 40.6
Outgoing L
dom
maximum lo
national roam
cal call tariffs
cribers in ca
rison purpos
n considered
ing Calls to P
ers are paying
ring maximum
bile calls. It m
India, Pakist
s Rs.16.25 pe
n UK
o pay as hig
calls where
Vodafone O
20.32 2
o Pakistan fr
one Orange
64 27.09
ocal Calls in
ocal call tariff
ming in the U
s at Rs.76.71
ase they ro
ses, un‐bund
d which ex
Pakistan
g as high as R
m tariffs for c
may be noted t
tan & Poland
er minute.
gh as Rs.145
eas internatio
range O
27.09 81
om UK
e O2
9 33.86
n UK
f of Rs.40.64
K, Telenor is
1 per minute
oam on O2
dled prepaid
xclude
Rs.313 per m
calls to Pakist
that UK opera
d in
per
onal
VO2
.27
O
V
O
minute for out
an which is R
ators are also
Mo
O2 26
Vodafone 26
Orange 26
0100200300400
Post‐Paid
O2
Vodafone
Orange
020406080
Pre
Orange
Vodafon
250260270280290300310
PrePa
Mo
O2 14
Vodafone 3
Orange 10
0
50
100
150
200
Post‐paid S
M
O2
Vodafone
Orange
020406080100
Post‐paidC
tgoing calls to
Rs.47.40 (35p
o offering pro
obilink Ufone
65.24 275.88
65.24 275.88
65.24 248.52
d subscriberwhile at R
Jazz
70
e‐Pay SubscrCalls wh
Jazz
268
ne
0000000
e‐pay Subscrakistan whil
bilink Ufone
5.16 145.16
4.2 21.28
8.68 21.28
Subscribers ‐at Roa
Mobilink Ufone
68.4 68.4
68.4 19.76
68.4 15.2
d SubscriberCalls while a
o Pakistan. O
) for fixed‐lin
omotional sch
Telenor W
8 246.99
8 246.99 3
2 2
rs ‐ Calls to PRoaming
TalkShawk
19.94
ribers ‐ Outghile at Roam
U‐Prepay
303.58
ribers ‐ Callsle at Roamin
Telenor W
6 33
33
‐ Receiving Caming
e Telenor W
76.71
6 17.64 56
48
rs ‐ Outgoingt Roaming
34
On the
e and
hemes
Warid CM P
313.12
281.96 263.7
Pakistan
U‐PrePay
21.69
going Local ming
TalkShawk
279.21
s to ng
Warid CM P
28.12
28.12 110.
Calls while
arid CM Pak
6.24
8.64 48.64
g Local
ak
72
Pak
.2
calls from
Summary
While loo
appropria
Although
mobile op
calls to P
roaming o
IR Call Type
OG Local Ca
OG Call to P
Incoming Ca
17
Mobilink
m Pakistan to U
y Conclusion
oking at tariff
ately priced
some of the
perators but
akistan from
on O2 networ
ll
ak. IDD
alls IDD
12.99
Ufone Tel
Outgoing
UK mobile are
n
fs offered by
which is inc
cellular mobi
international
UK. In case
rk whereas ot
Proxy Com
Local C
Calls to Pak.
Calls to UK fr
18
10.5
lenor War
Calls to UK
e charged at
y UK operato
entivizing int
ile operators
outgoing tar
of incoming
thers are levy
mparison Pa
Call in UK 1
from UK 24
rom Pak. 2
57
20
rid CM Pak
Rs. 20.00 per
ors it appears
ternational r
are offering
riffs to Pakist
calls, a subs
ying relatively
Applicak. Roamer 15.20~76.71
46.99~313.12
21.28~145.16
k
r minute.
s that interna
roaming subs
local call tarif
tan are 15.12
scriber has to
y less charges
cable to Local Sub
16.25~40
2 16.25~81
10~20
ational roam
scribers to o
ffs even lowe
times higher
o pay as high
s (i.e. Rs.19.18
bs.
0.64
1.27
0
Orange
Vodafone
0
50100
150
Pre‐pay Suw
ing tariffs ar
opt for local
er than UK ce
r in comparis
h as Rs.145.1
8 to Rs.30.83)
Multiples
1.89
15.12~3.85
2.12~7.26
Jazz U‐
102
2
bscribers ‐ Rwhile at Roam
35
re not
SIM.
ellular
son to
16 for
).
5
‐Prepay TalkS
20.88 3
Receiving Caming
Shawk
33
alls
5. HOutgoing
In Hong K
operators
tariffs and
tariffs are
minute w
Rs.442. P
package w
with in
Maximum
charges o
Rs.1.33 p
hand, IR s
calls have
minute.
Internati
For intern
subscribe
minute w
from Hon
Hong Kong g Local Calls
Kong, the cel
s are offering
d their outgo
e as low as
with monthly
PCCW is offe
which can be
itial fee
m outgoing
offered by Vo
er minute. O
subscribers w
e to pay as hig
ional Outgo
national Outg
rs are payin
whereas intern
g Kong are ch
llular mobile
competitive
ing local call
Rs.0.18 per
line rent of
ring prepaid
e subscribed
of Rs.424.
local call
odafone are
On the other
while making
gh as Rs.68.40
ing Calls to P
going calls to
ng a maxim
national outg
harged at Rs.
local
0 per
Pakistan
Pakistan, Pa
um of Rs.23
going tariffs to
106.08 per m
CMPeo
Sunday
CSL
Hutch
Vodafo
01020304050607080
O
V
kistan’s IR
33.32 per
o Pakistan
minute.
Mobilink
ple 68.4
y 68.4
68.4
68.4
ne 68.4
000000000
utgoing Loca
PCCW
Vodafone
00.20.40.60.81
1.21.4
Outgo
Ufone
25.84
25.84
25.84
al Calls by R
94.23
PCCW
Cal
Peak
1.06
1.33
ing Local Ca
Telenor Wa
30
23.28 30
23.28 30
23.28 30
Roaming Sub
106.08
3
ls to Pakista
O
lls in Hong K
arid CMPak
27.36
0.4 27.36
0.4 27.36
0.4 27.36
0.4
bscribers
106.08
CSL
an from Hon
Off‐peak
0.53
0.18
Kong
36
k
89.11
Vodafone
ngkong
Receiving
IR subscr
internatio
Rs.8.00 pe
Summary
IR Call Ty
OG Local
OG Call to
Pakistan
Incoming
2.35
0
1
2
3
4
5
6
7
8
9
Mobilin
O
g Calls withi
ibers are pay
onal outgoing
er minute.
y Conclusion
ype P
Call
o
Calls
CMPeople
Sunday
CSL
Hutch
Vodafone
0
50
100
150
200
250
1.99
8
k Ufone Te
Outgoing Tar
in Hong Kon
ying as high
g tariffs to Ho
n
Proxy Compa
Local Cal
IDD C
Pakistan fro
IDD Calls
Mobilink
171
171
171
171
171
Call
8.00
1.04
elenor Warid
riff to HongK
ng
as Rs.63.08
ong Kong are
arisonPak.
l in HK 22
Calls to
om HK
170
s to HK 26
Ufone
180.12
180.12
184.44
s to Pakistan
2.00
d CM Pak
Kong
per minute
the most com
Applicab. Roamer 2.28~68.4
.02~233.32
6.6~63.08
Telenor
175.08
170.02
170.02
n by Roamin
CMPeople
Sunday
CSL
Hutch
Vodafone
0
10
20
30
40
50
60
70
for receiving
mpetitive and
ble to Local Subs.
0.53~1.33
89~106
1.04~8.00
War
183.9
199.8
233.3
224
ng Subscribe
Mobilink
e
56.24
63.08
Receivin
g calls in Ho
d Telenor is c
. M
4
1
2
rid
92
88
32
.2
ers
Ufone
28.12
28.12
26.6
ng Calls whi
ong Kong wh
charging as h
Multiples
41.4~76.7
1.56~1.98
23.1~17.8
CMPak
195.32
212.04
210.52
204.44
Telenor W
5
56.28 5
56.28 5
56.28 5
le at Roamin
37
hereas
igh as
Warid CM P
50.1
0.16 50.1
0.16 50.1
0.16 50.1
0.16
ng
Pak
16
16
16
16
38
Except for Mobilink (Rs.68.4), all the other cellular mobile operators are charging roaming outgoing local
call tariffs in the range of Rs.22 to Rs. 30 per minute. It is pertinent to mention that in June 2008,
Mobilink was charging local call tariff at Rs.102 per minute. Warid is charging Rs.233 per minute for
international outgoing calls to Pakistan whereas Hong Kong cellular mobile operators are charging as
high as Rs.106 per minute. For incoming calls, the tariffs are in the range of Rs. 26.6 to Rs. 63 per
minute. It is important to note that in some cases, making a local is more expensive than receiving a call
from Pakistan.
6. UOutgoing
The cellul
for outgo
USA are
lower tar
$1.00 per
Internati
Internatio
calls from
minute fo
outgoing
3.52 (Rs.2
internatio
internatio
Mobilink
Ufone
Telenor
Warid
020406080100120140
Ou
USA g Local Call
ar mobile op
oing local cal
Rs.17 per m
riffs (Rs.6.85
r day.
ional Outgo
onal roamers
m USA to Pakis
or calls to Pak
calls from AT
241). The cha
onal long dist
onal calls to P
AT&T Sp
113.24 113
117.8 44
127.68
utgoing Loca
erators are c
ls whereas m
minute. AT&T
per minute)
ing Calls to P
s while maki
stan are payi
kistan. Standa
T&T USA to m
arges reduce
tance is availe
akistan.
rint T‐Mobil
3.24 113.24
4.08 93.48
117.39
85.88
al Calls while
harging Rs.13
maximum loc
T and T‐Mob
with daily a
Pakistan
ing internatio
ng Rs.298.68
ard internatio
mobile cost U
to as low as
ed for Rs.274
le Cingular
4 113.24
9 133.25
127.68
e at Roaming
33.25 per min
cal call tariff
bile are offe
access charge
onal
per
onal
US $
Rs.26.17 and
4 per month.
A
S
T‐
C
C
Cbell
113.24
76
g
0
50
100
150
200
250
300
nute
fs in
ring
e of
d Rs.29.45 in
T‐Mobile is c
Mobi
AT&T 227.
print 227.
‐Mobile 227.
ingular
bell
050100150200250300350
Calls to
241
AT&T
Ou
n case month
charging Rs.1
link Ufone
24 142.8
24 209
24 237.1
o Pakistan w
17.13
AT&T
Loc
T
utgoing Loca
ly subscriptio
112 per minut
e Telenor
88
12 225.82
227.97
while at Rom
cal Calls in U
39
112.34
T Mobile
al Calls in US
on for
te for
r Warid
282.72
2 247.76
7 282.72
298.68
maing
13.02
T Mobile
USA
SA
Receiving
Since RPP
cellular m
nominal c
which ran
Incoming
are as hig
Summary
A local su
44.08~133
expensive
that India
compared
compared
IR Call Typ
OG Local C
OG Call to
Incoming C
g Calls withi
P regime is
mobile oper
charges for in
nges between
charges lev
h as Rs.136.0
y Conclusion
bscriber is pa
3.25 per min
e but interna
a and Malay
d to Pakistan
d to India, Ban
pe
Call
Pak. IDD
Calls IDD
in USA
applicable in
ators in Pa
nternational o
n Rs. 1.22 to
ied by cellul
06 per minute
n
aying Rs.13.02
nute. Althoug
tional roame
ysia are char
n. Pakistan’s
ngladesh and
Proxy Co
Local C
D Calls to Pak
Calls to USA
n USA theref
kistan are c
outgoing calls
o Rs.2.75 per
ar mobile o
e.
2 to Rs.17.13
gh internation
ers are paying
rging relative
roaming su
d Malaysia.
mparison
Call in USA
k from USA
from Pak.
fore the
charging
s to USA
minute.
perators
per minute w
nal outgoing
g as high as
ely lower tar
bscribers are
Roaming v
44.08~133.2
142.88~298.6
45.60~136.0
whereas inter
calls to Paki
Rs.298 per m
riffs for calls
e also paying
vs. Local Rat
25 13.02~1
68 112~2
06 1.22~2
AT&T
Sprint
T‐Mobile
Cbell
020406080
100120140160
Rece
rnational roa
stan from US
minute. It is w
s back to Ind
g higher inco
tes
17.13
241
2.75
Mobilink U
126.16 1
114
eiving Calls w
mer has to pa
SA mobile is
worth‐highlig
dia / Malays
oming charg
Multiples
3~6.72
1.11
33.6~41.6
Ufone Tele
119.32 136.
45.6
95 121.
while at Roa
40
ay Rs.
quite
ghting
sia as
ges as
nor Warid
.06 121.6
.54 91.2
83.6
aming
41
Benchmark Scenario 2 – IR Tariffs of Pakistani Subscribers vs. IR Tariffs offered by other countries for visiting Pakistan
To further analyze roaming rates of Pakistan and to check whether or not Pakistan roaming rates are
higher than the rates offered by the compared country cellular operators for roaming in Pakistan, a
quick side by side comparison has been conducted. This comparison constitute of the same countries as
discussed in the previous section.
Pakistan vs. Saudi Arabia
Pakistan’s IR Tariffs for KSA KSA IR Tariffs for
Pakistan Prepaid Postpaid Prepaid Postpaid Outgoing Local Calls 70.00~92.07 22.04~88.92 56.30 45~53
Outgoing International Calls 166.05~210 130.72~202.16 404 61~97
Receiving Calls 48~96 35.72~96.14 154 69~77
Pakistan’s roaming subscribers are at a disadvantage since they have to pay higher roaming tariffs as
compared to KSA roamers. STC is offering lower postpaid roaming tariffs for all the three categories as
compared to Pakistan’s maximum tariffs. Pakistan’s prepaid IR subscribers are paying lower tariffs for
international outgoing and incoming calls as compared to STC but for local calls the charges are as high
has Rs.92 per minute.
Pakistan vs. UAE
Pakistan’s IR Tariffs for UAE UAE IR Tariffs for Pakistan
Prepaid Postpaid Prepaid Postpaid
Outgoing Local Calls 56.59~85.88 45.4~104.12 85.12 30~49.94
Outgoing International Calls 114~173 91~171 374 31~99.65
Receiving Calls 11.13~61.31 11.4~75.24 79.45 18~82.4
42
Pakistan’s prepaid as well as postpaid subscribers are paying as higher tariffs for outgoing local calls as
compared to UAE’s roaming tariffs. Du is charging Rs.374 for international outgoing calls to UAE from its
prepaid customers whereas Pakistan’s cellular mobile operators are charging as high as Rs.171 per
minute from its postpaid customers. For incoming calls, maximum tariffs are on a higher side as
compared to UAE. UAE’s postpaid IR tariffs (minimum as well as maximum) are on a lower side as
compared to Pakistan. From the above, it appears that UAE cellular mobile operators have negotiated
better inter‐operator tariffs as compared to Pakistan’s operators.
Pakistan vs. Malaysia
Pakistan’s local as well as incoming tariffs are on a lower side as compared to Malaysia. However,
Malaysian cellular mobile operators are offering cheaper international outgoing calls to Malaysia as
compared to making local calls in Pakistan. Pakistan’s IR subscribers are paying substantially higher
tariffs for international outgoing calls as compared to Malaysians. The cellular mobile operators in
Malaysia have recently reduced standard international long distance tariffs to several destinations
including Pakistan but from the above it appears that the benefit in reduction in outgoing tariffs have
not been passed either to Pakistan’s cellular mobile operators or to IR subscribers.
Pakistan vs. United Kingdom Pakistan’s postpaid subscribers are paying higher tariffs for outgoing international calls and incoming
calls as compared to UK. On the other hand, prepaid roaming tariffs are relatively lower than UK. The
cellular mobile operators in the UK are charging international outgoing tariffs to Pakistan in the range of
Rs.16.25 to Rs.81.27 per minute but the charges increase to as high as Rs.313 per minute in case of
international roaming.
Pakistan’s IR Tariffs for Malaysia Malaysian IR Tariffs for Pakistan
Postpaid Postpaid
Outgoing Local Calls 14.39~68.4 36.80~124.25
Outgoing International Calls 197~306 65.55~82.84
Receiving Calls 34~59 20.7~82.84
43
Pakistan’s IR Tariffs for UK UK IR Tariffs for Pakistan
Prepaid Postpaid Prepaid Postpaid
Outgoing Local Calls 19~70 15.20~76.71 134~243 134~243
Outgoing International Calls
268~303.58 246~313 134~243 134~243
Receiving Calls 20.88~102 21.28~145.16 101~135 90.14~121.91
Pakistan vs. Hong Kong Hong Kong cellular mobile operators are offering substantially lower IR tariffs as compared to Pakistan.
Maximum local call as well as international outgoing tariffs for Pakistan’s IR subscribers are Rs. 68.4 and
Rs.233 respectively whereas Hong Kong IR subscribers are paying Rs.49 and Rs.95 per minute. In case of
incoming calls, Hong Kong operators are charging higher tariffs as compared to Pakistan.
Pakistan vs. USA Although Pakistan’s cellular mobile operators are offering lower tariffs for outgoing local calls and
incoming calls but maximum tariffs for outgoing international calls are on a higher side. AT&T is charging
Rs.189 for calls to USA from Pakistan whereas Warid is charging Rs.298 for calls to Pakistan.
Pakistan’s IR Tariffs for
USA USA IR Tariffs for
Pakistan
Outgoing Local Calls 44.08~133.25 151~189
Outgoing International Calls 142.88~298.68 151~189
Receiving Calls 45.60~136.06 151~189
Pakistan’s IR Tariffs for
Hong Kong Hong Kong IR Tariffs for
Pakistan
Postpaid Postpaid
Outgoing Local Calls 22.28~68.4 37~49
Outgoing International Calls 170.02~233.32 65~95
Receiving Calls 26.6~63.08 123~151
44
Benchmark Scenario 3 Roaming Comparison – Pakistan vs. Regional Countries IR Tariff for Same Destinations To compare and assess level of Pakistan’s IR tariffs, a comparison has been carried out with regional
countries including India, Bangladesh and Malaysia. International roaming rates of these countries along
with Pakistan are compared for roaming in all the countries analyzed in previous section. Since each
country has more than one cellular mobile operator offering IR services, for practical reasons only
following operators have been selected for comparison purposes;
• AirTel of India
• Grameen Phone of Bangladesh
• Digi Cell of Malaysia
• All cellular operators of Pakistan
It is also worth‐highlighting that SATRC has also made “international roaming tariffs” an action point in
its agenda in 2007 to frame a coordinated regulatory policy in member countries of SATRC. In this
regard, a draft concept paper was prepared by TRAI and was floated to all member countries to address
concerns of consumers’ regarding high international roaming charges prevailing in the region. The
concept paper has specified that international roaming tariffs are not competitively determined and the
markets have shown inadequate competition therefore it becomes imperative upon Regulators to
promote competition in the sector. The paper has also asked the regulators to as gather data on
international roaming call charges of their subscribers roaming in other member countries and share
regulatory systems that are in place as far as international roaming is concerned.
Roaming to Saudi Arabia
Pakistan’s IR tariffs are amongst the highest in the region for outgoing local as well as international
outgoing calls. Airtel is offering not only lower outgoing local call tariffs but international outgoing tariffs
are also on a lower side. However, Airtel incoming charges for roaming on STC’s network are on a higher
Making a Local Call Calls to Respective Countries Incoming Calls
Pakistan 22.04~88.92 130.72~202.16 35.72~96.14
India 60.18 135.6~137.37 149~190
Bangladesh 71.4 160.96 79.2
Malaysia 17.92~20.61 58.75~105.67 Free~16.32
45
side as compared to other regional countries. Grameen Phone is also charging lower charges for all the
three call categories. Digicell is offering attractive IR tariffs to its subscribers and is offering free
incoming calls for roaming on Mobily’s network. From Digicells website, it appears that it is not charging
any additional amount from its subscribers and is only levying Rs.17.92 which is being paid to STC for
incoming calls. Although Pakistan’s cellular mobile operators are also paying same charges to STC and
Mobily for incoming calls but it appears that the share retained by them is on a higher side.
Roaming to UAE Grameen phone is the only operator which is offering competitive tariffs for international roaming in
UAE. Digicell is also offering substantially lower tariffs for outgoing local calls as well as incoming calls
but international outgoing tariffs to Malaysia are on a higher side. Free incoming is applicable to
Malaysian subscribers if they roam on Etisalat’s network. While reviewing Pakistan’s IR tariffs, local call
as well incoming tariffs are the highest in the region.
Making a Local Call Calls to Respective Countries Incoming Calls
Pakistan 22.04~88.92 130.72~202.16 35.72~96.14
India 36.53‐57.92 156‐209 36‐149
Bangladesh 43.47~68.72 87.97~124 18~46.56
Malaysia 47.67~74.91 255.36~272.40 Free‐45.4
Roaming to Malaysia It is evident from the table that Airtel of India and Grameen phone have negotiated better inter‐
operator tariffs as they are offering lower IR tariffs to Malaysia than that of Pakistan. For international
outgoing calls to Pakistan, Pak. roaming subscribers are paying Rs. 265 (Mobilink), Rs.219 (Ufone) &
Rs.306 (Warid) for roaming on Celcom’s network whereas Indian and Bangladeshi’s subscribers are
paying Rs. 133 & Rs.186 for the same call category. This discrepancy indicates that international
roaming tariffs require rationalization.
Making a Local Call Calls to Respective Countries Incoming Calls
Pakistan 14.39~68.4 197~306 34~59
India 29.66~37.56 133.45~173.46 36~55.77
Bangladesh 21.11~42.22 186.72~218.62 56.94~65.19
46
Roaming to United Kingdom Pakistan IR subscribers roaming on UK networks are paying highest tariffs in comparison to India,
Bangladesh and Malaysia. It is pertinent to mention that Indian, Malaysian and Bangladesh’s IR
subscribers are paying Rs.35.55,Rs.16 and Rs.39 per minute for roaming on Vodafone’s network whereas
Pakistan’s IR subscribers are paying 56 (Warid) and Rs.68.4 (Mobilink) for roaming on same network.
Similarly, for international outgoing calls via Vodafone network, subscribers of regional countries are
paying Rs.204 to Rs.218 per minute whereas Pakistan’s IR subscribers are paying Rs.246 to Rs.313 per
minute. For incoming calls, Pakistan’s tariffs are again on a higher side as compared to Malaysia and
Bangladesh.
Making a Local Call Calls to Respective Countries Incoming Calls
Pakistan 15.20~76.71 246.99~313.12 21.28~145.16
India 35.58~63.53 127~204.57 36~144
Bangladesh 37.92~67.73 176~218.07 24
Malaysia 16.25~67.73 94.82~218 Free‐67.72
Roaming to Hong Kong
Pakistan’s maximum local call tariffs are four times higher as compared to Malaysia. Although most of
the operators in Pakistan are charging Rs.50 to Rs.56 per minute for incoming calls but Mobilink
subscribers have to pay as high as Rs.63 per minute for roaming on Hutch network. Airtel, Grameen
Phone and Digi are charging same incoming charges irrespective of roaming network. Pakistan’s cellular
mobile operators are charging local call tariffs in the range of Rs.23 to Rs.30.4 per minute, except for
Mobilink (which is charging Rs.68.4 per minute). From the above, it is evident that maximum tariffs
charged by Pakistan’s cellular mobile operators needs revision in line with other regional countries.
Making a Local Call Calls to Respective Countries Incoming Calls
Pakistan 22.28~68.4 170.02~233.32 26.6~63.08
India 19 114~142 55
Bangladesh 22.40 146.10~168.51 40.40
Malaysia 23 113.9~123 23
47
Roaming to USA Pakistan’s maximum tariffs for all the three categories are on a higher side as compared to India,
Bangladesh and Malaysia. Grameen / Digicell and Airtel are charging Rs.75.24 and Rs.84.00 per minute
for local calls in case their roamers roam on AT&T network whereas Mobilink, Ufone and Warid are
charging Rs.113, Rs.117 and Rs.127 respectively for roaming on same network. Similarly, Grameen
Phone and Digicell are charging as local calls Rs.52.44 & Rs.67.64 for roaming on T‐Mobile network
whereas the charges increase to Rs. 117, Rs. 93 and Rs.85 per minute (levied by Telenor, Ufone & Warid)
for roaming on same network. Regarding international long distance calls, Grameen is charging Rs.91.20
whereas Ufone / Warid are charging Rs.142 and Rs.282 per minute on roaming on AT&T’s network.
Making a Local Call Calls to Respective Countries Incoming Calls
Pakistan 44.08~133.25 142.88~298.68 45.60~136.06
India 42.06~84.14 77.65~214 68.36~107.16
Bangladesh 57~75.24 91.20~364 62~99.24
Malaysia 52.44~75.24 91.20~136 33~75.24
Conclusion of Roaming Comparisons After reviewing Pakistan’s roaming tariffs, it can be concluded that Pakistan’s roaming subscribers are at
disadvantage and are paying higher tariffs in most of the cases. Inspite of increased competition in
domestic mobile tariff, the cellular mobile operators are charging higher tariffs as compared to foreign
operators for popular destinations such as KSA, UAE, UK, Hong Kong and Malaysia. It may also be noted
that despite having a relatively small IR subscriber‐base, Grameen phone is offering more competitive IR
tariffs as compared to Pakistan. Digicel, a subsidiary of Telenor Norway is facilitating its subscribers by
charging lower or “nil” incoming tariffs for popular destinations such as KSA, UAE and UK, whereas in
case of Pakistan the operators are charging incoming calls as high has Rs.145 per minute and earning
margins in the range of 24.6% to 100% (Annex‐C).
International roaming services can be considered as bottleneck service as it exhibits monopolistic
characteristics. The cellular mobile operators have dominance in international roaming services and this
has been acknowledged internationally. The cellular mobile operators in Pakistan have not promoted or
48
encouraged their subscribers to opt for international roaming while travelling abroad. Similarly, the
subscribers are also reluctant to go for international roaming service due to higher tariffs.
Way Forward
As international roaming charges are over‐priced and do not reflect the underlying cost of providing the
service. The causes of high international roaming tariffs can be attributed to absence of real competition
and regulatory forbearance. As a result, the cellular mobile operators are free to negotiate roaming
agreements with other operators without any requirement of submitting those agreements for approval
of the Authority. Similarly, the Authority is also not regulating Inter‐operator tariffs (IOT) or wholesale
tariffs negotiated among the operators for roaming services.
The Authority intends to rationalize international roaming tariffs in two phases. In the first phase, the
operators are encouraged to rationalize their international roaming tariffs through self regulation. In
case, the operators do not rationalize their international roaming tariffs, the Authority can also adopt
European Commission approach of regulating both wholesale as well as retail roaming tariffs. It is also
pertinent to mention that sufficient margins exist in international roaming which the cellular mobile
operators are not willing to reduce.
Question no‐2:
Comments are invited on the accuracy of data used in benchmarking. In case, you observe any discrepancy, please provide the revised figures with supporting facts.
Question no‐3:
Do you agree with the Authority’s conclusion that international roaming tariffs of Pakistan are high in almost all the cases, and sufficient margins are available with mobile operators in this segment?
Question no‐4:
Keeping in view the tariffs of other countries as well as proxy comparison charges, you are requested to suggest measures to rationalize IR tariffs for the countries under study.
49
Question no‐5:
Is there an immediate need for the Authority to intervene and regulate international roaming tariffs? If yes, what form of tariff regulation should the Authority adopt regarding regulation of international roaming tariffs? Should the Authority approve international roaming tariffs on regular basis or issue determinations when need arises?
Question no‐6:
Should international roaming tariffs of all countries be regulated or tariffs of only selected countries be regulated? In case, tariff approval for selected countries is suggested, what should be the basis of selection of these countries (i.e. traffic, subscribers, revenue etc)?
Question no‐7:
In your opinion, should the Authority regulate:
a. Retail international roaming tariffs ‐ or
b. Wholesale international roaming tariffs – or
c. Both Retail & Wholesale Tariffs?
Question no‐8:
In case regulation of retail tariffs is suggested, should the Authority determine international roaming tariffs on the basis of
a. Lowest of retail IR tariff of Pakistani operators b. Lowest of retail IR tariff of benchmarked countries or c. Proxy tariffs as given in Benchmark Scenario‐1
50
CHAPTER 5: OTHER ISSUES OF INTERNATIONAL ROAMING IN PAKISTAN
Apart from higher roaming rates, as discussed in previous section, certain other issues are faced by the
Pakistani roaming subscribers. Some of the major challenges are as under:
Consumer Awareness on International Roaming Tariffs The cellular mobile subscribers in most of the cases are not aware of international roaming charges
when travelling abroad. Further, frequent changes made by cellular mobile operators also make it
difficult for the subscribers to understand international roaming tariffs. As a result, consumers often
complain that international roaming charges offered by the cellular mobile operators are quite complex
and difficult to comprehend. It has also been observed that the cellular mobile operators generally do
not provide customers willful information on applicable roaming charges when international roaming
subscriptions are made. Franchises are often unable to deliver the necessary information as they do not
possess international roaming tariff brochures.
Although almost all the cellular mobile operators have uploaded their international roaming tariffs on
their websites but the cellular mobile operators should also provide international roaming tariff
brochures / printouts at the time of activating roaming subscription. The Authority is also of view that
consumers are not adequately informed and the cellular mobile operators should educate and create
awareness about different aspects of international roaming tariffs. Further, it should be made
mandatory upon operators to announce their roaming tariffs via SMS while roaming in the visited
country.
Question no‐9:
Do you agree with the Authority’s view that consumers are not informed adequately about international roaming tariffs?
Question no‐10:
Should it be made mandatory upon operators to announce their roaming tariffs via SMS while roaming in the visited country?
51
Question no‐11:
What steps should be adopted by cellular mobile operators to raise consumer awareness regarding international roaming tariffs?
Multiple Roaming Charges / Network Selection The cellular mobile operators have made multiple international roaming contracts with several
operators. Resultantly, they offer multiple tariffs for one country. When a roamer roams in a particular
country he does not know how much he is paying for a particular call and from which network he is
roaming. As a result, the roamer ends up paying higher roaming charges. Further, the cellular mobile
operators also have a preferred network list in which the roamers mobile handset automatically selects
network without giving any choice to the customer.
While roaming abroad consumers may select the network they connect to by using the handset’s menus
and keypad. However, such roaming is only possible under the condition that a roaming agreement
exists between the home operators and the foreign roamed operator. The Authority is of the view that
consumers are not aware of such technical features and are unable to use their handset to connect to
alternative operators.
Question no‐12:
Do you agree with the Authority’s view that the consumers are unable to switch to alternative service providers due to little or no information about technical features? If yes, how the consumers should be facilitated to avail the services of his choice?
Display of AParty number and Ring Back Announcements Most of the times international roamers while receiving calls do not receive A‐party number (from the
number the call is originated) and no number is displayed as CLI. As a result, roamers are forced to
receive un‐wanted calls which could have been avoided if a number is displayed, e.g. marketing calls etc.
By receiving these calls they are burdened with high incoming charges. The Authority is of the opinion,
that the cellular mobile operators should provide A‐party so that international roaming subscribers have
the option to ignore unwanted calls.
It is also pertinent to mention that in India, TRAI has made mandatory upon cellular mobile operators to
announce the message for the calling party that “the called person is on roaming”. The Authority is also
of the view that the cellular mobile operators should also facilitate its international roaming subscribers
by informing the calling party that the called person is on roaming.
52
Question no‐13:
Do you agree with the Authority’s viewpoint that the A‐party number should be provided to international roamers to avoid unwanted calls?
Question no‐14:
Do you agree with the Authority’s viewpoint that the cellular mobile operators should make necessary arrangements to inform the calling party that the called person is on roaming?
Billing Transparency Post‐paid roaming subscribers face another challenge of reconciling their roaming bills as most of the
times the A‐party number, dialed number and incoming/outgoing SMS numbers are not displayed on
their bills; instead a default number e.g. 923xx000000 is displayed. This makes it difficult for these
subscribers to identify these calls and lodge a complaint either to the operator or to the Authority. In
addition if a user receives an SMS message while at roaming, in some instances the same message is
received multiple times during roaming. This adds on to their bills as some of the cellular mobile
operators are also charging for incoming messages.
For pre‐paid roamers, the biggest challenge is un‐availability of billing details as the cellular mobile
operators are not providing any billing facility to check and verify their roaming calls. The user is
unaware of how much has been charges per call or message and of the remaining balance. The
Authority is of the view that the prepaid subscribers should also be given the facility of detailed billing to
verify and check their calls. The operators may levy reasonable charge for provision of this facility.
Question no‐15:
Do you agree with Authority’s viewpoint that prepaid users should be provided billing details for availing international roaming service upon request? If yes, what should be the level of charges for provision of billing details?
Question no‐16:
The stakeholders are requested to provide their comments or suggestions on any issue discussed in this Paper along with supporting reasons or references to international best practices.
Question no‐17:
The stakeholders are also requested to raise any other issue or provide views, comments or suggestions on any other aspect of international roaming, that are not covered in this Paper.
53
ANNEXURE
ANNEXURE‐A
Pakistan’s Roaming Prices between 2005 ~ 2008
USA Mobilink Ufone Telenor Warid
2005 2008 2005 2008 2005 2008 2005 2008
Local Call 100 113 68 117 47 133 82 127
Calls to Pak 199 227 83 237 150 227 NA 298
Incoming Calls 103 105‐126 30 119 80 136 93 121
UK Mobilink Ufone Telenor Warid CMPAK
2005 2008 2005 2008 2005 2008 2005 2008 2005 2008
Local Call 75 68 37.95 68 26 76 30 56 34 48
Calls to Pak 253 265 204 275 212 246 313 207 263
Incoming Calls 31 34‐145 30 145 33 33 33 28 29 110
KSA Mobilink Ufone Telenor Warid CMPak
2005 2008 2005 2008 2005 2008 2005 2008 2005 2008
Local Call 212 68 15 81 17 73 17 88 19 22
Calls to Pak 214 171 83 186 101 168 202 288 130
Incoming Calls 31 50 30 83 33 96 33 85 30 42
UAE Mobilink Ufone Telenor Warid CMPak
2005 2008 2005 2008 2005 2008 2005 2008 2005 2008
Local Call 5 68 5 79 5 71 6 104 6 85
Calls to Pak 62 171 57 142 52 129 156 59 155
Incoming Calls 31 75 30 11.4 33 58 33 34 29 47
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ANNEXURE‐B
Currency Conversion Rates Used As of September 2008
1 US $ PKR 76.00
1 Bangladeshi Takka PKR 0.9858
1 HK $ PKR 10.08
1 Euro PKR 107
1 GBP PKR 135.45
1 Saudi Riyal PKR 20.40
1 Malaysian Ringgit PKR 22.7
1 SG $ PKR 49.84
1 UAE Dirham PKR 18.64/20.8
1 Indian Rupee PKR 1.50
55
ANNEXURE‐C
Pakistan Operators and Foreign Operators Roaming Shares (as of June 2008)
Foreign Operator’s Share
Mobilink’s Share Total Retail Tariff
% Share of Mobilink
Saudi Arabia STC Mobily
15.9615.96
34.2034.20
50.16 50.16
68.1868.18
UAE Etisalat Du
41.040.00
34.2034.20
75.24 34.20
45100
Malaysia Celcom Maxis Timecel
23.5624.32 0.00
34.2034.20 34.20
72.76 58.52 34.2
5958 100
United Kingdom O2 Orange Vodafone
110.9674.48 0.00
34.2034.20 34.20
145.16 108.68 34.20
23.631.5 100
Hong Kong CSL Hutch PCCW SmarTone
22.0428.88 22.04 22.04
34.2034.20 34.20 34.20
56.54 53.08 56.54 56.54
60.464.4 60.4 60.4
USA AT&T Bell South Cingular Wireless Manx Telecom
91.96101.84 101.84 104.88
34.2034.20 34.20 34.20
126.16 136.04 136.04 139.08
2725 25 24.6