PTCL - Leased Line Tariff Skyrocket?

[Tee Emm]

Sorry to those who can't read Urdu but the attached news cliping is too strange to be true. This is from Daily  Jang.

It has serious implications for DSL operators who rely heavily on PTCL leased lines (for inter exchange capacities) but at the same time good news for long distance capacity providers and yet too bad a news for the general Internet and data networks industry growth.

Linkdot net was reportedly heavily relying on PTCL leased lines and was macthing and beating the PTCL DSL rates and many have immediately reasoned that these steps are meant to kill competition.

Similarly, for long haul operators like Mobilink and Wateen (who have started their domestic bandwidth operations and have contracts signed and in place) this is too bad a news. For those who have not yet started (like Multinet), this is the photo finish way of inaugrating the services.

I am sure there are a lot of other details to this news. Please share any other information you might have on the forum.

-T

[Rizwan Sarwar]

PTCL Pooing again, who is actually in control of these ridicilous decisions. That will give mobile market a boost since landline providers will have less to compete with.

riZ

[Ayad Aftab]

Surely too strange to be true - increment of 450% to 700% - wow!

 

What's even more strange is that though PTCL might've done this to shed away its competitors in the local Access market (e.g. DSL etc),  but it can also be beneficial to other LDI/LDN operators on the other hand.

 

I was expecting some reasonable comments from Sikandar Sb...but well that's PTCL!

[Uzair Ahmed]

Dear Tee Emm,

 

Here is the English version. its a news clip from the The Daily News.
 

Regards,

 

Uzair
 

[Shiraz]

Not sure if it would be suicidal for PTCL itself (as commented by
MoIT) but see...

They are pushing ISPs and DSL/Line operators to contact the LDIs and
on the other side, PTCL is not letting DSL operators connect to LDI
operators within PTCL's exchanges (at least as part of DSL
Interconnect agreement). In addition to that you cannot get Internet
bandwidth from any other operator and take it to your site within PTCL
exchange for further distribution and transport over PTCL's copper.
Moreover, I've come to know about a documented/undocumented policy
that PTCL is allowing operators to pull fiber from their co locations
but its allowed for only 1 exchange per city...

Regards.

--
Shiraz A. Malik
Cell: +92-300-8541239

[Ayad Aftab]

Yes, operators can pull fiber via the 0-manhole but I guess it's only for the DTEs in every city.

. 

[Asif Hanafi]

This is insane. This means prices for having a DSL connection will also go up! and i too have the exact same question as rizwan, who is the idiot who makes these decesion and dont price increases or decreases have to be authorised by PTA? What the hell was PTA doing and what the hell is PTA doing? Its sad, PTCL should get fined for for stupidity and attempting to take advantage of their monopoly.

[Faisal Khan]

Careful --- its not a monopoly anymore! :)

[Ashar]

PTCL does have a monopoly in areas where it is increasing the rates.

Ashar

[Ayad Aftab]

I have a firm belief that everything in this world comes in a 'package' and you have to accept it as it is. PTCL's latest move, and earlier ones, are part of the package in which you earned $2.2 billion - and this had to happen. Having limited insight into the global telecom sector, still, show me one country in which the national Telco is not being run by the State itself. Selling off our national Telco had had its bounties - similar to these. It's no more a state-run national Telco and yes it's not a monopoly anymore and yes it can do whatever it wants to - that's what the Shakes paid $2.2b for to the national exchequer.

 

Frankly speaking, i don't expect much from the PTA - they can become friends to anyone with a hefty pocket; their friendship with the jazzy cellco had hurt other cellcos more than PTCL.

 

You know, there's a thing known in the horse racing community - don't leave the horse un-saddled for too long or else it won't be galloping as per your wish.

 

PTCL got un-saddled 3 years ago!

 

- AD

.

[Zubair Ahmed]

Lavishness costs PTCL and customers dearly

Zubair Kasuri

ISLAMABAD: This would be shocking for many to know that CEO of PTCL is enjoying living a luxurious presidential suite of a five-star hotel in Islamabad with daily room rent of Rs. 80,000 plus taxes. The News has learnt from reliable sources that CEO/President of PTCL, Walid Irshaid, since his appointment from Etisalat in March 2007, has been living in a deluxe suite of an Islamabad five-star hotel, causing PTCL to spend about Rs 36 million on his accommodation only.

PTCL, which is still majority (62 per cent) owned by the Government of Pakistan, has set a new record of extravagance by paying hefty salaries and perks to its executives that include luxury Mercedes cars, furnished accommodation, free first class air travel and alike. This overspending combined with poor service and demoralised workforce has caused the telecom giant, for the first time in its history, to post a net operating loss of Rs 13 billion for July-March 08.

Since its inception in 1947, PTCL, then known as T&T Department, has been a cash earner for government but the company's revenue and performance has been sliding since Etisalat, the UAE state telecom company, purchased 26 per cent shares and took over its management in 2006 at a total cost of $2.6 billion.

PTCL's current share trading at KSE stands at Rs 39.5 against Rs 62.00 reserve price set by the government at the time of its privatisation and Rs 117 as paid by Etisalat in 2005-06. During last three years, PTCL has revamped its management structure, brought foreign and local experts from private sector in executive cadre, sent more than 25,000 employees packing under VSS scheme and announced new products and services most of which were met with bitter criticism from its customers due to poor quality and hidden charges.

PTCL customers has been critical of its compulsory Pakistan Package, activation of voice mails on all phones to increase phone bills of callers, and reducing duration of local calls to two minutes. "There is a new culture of lavishness and look busy-do nothing style in PTCL Headquarters, particularly on its Executive (5^th) Floor," said an employee of PTCL, not wishing to be named. Noor-ud-Din Baqai, Member Telecom, Ministry of IT, who is one of the three nominees of PTCL's Board, when contacted by The News said that he knew that Walid Irshaid has been residing in a five star hotel but didn't know how much PTCL was paying for it. The News has also learnt that a team of over 20 consultants from McKinsey & Company has been working at PTCL for last many months and their meals are daily served in the office from five star hotel. Ironically, charges of these consultants are paid from PTCL in the form of Technical Services Agreement between PTCL and Etisalat, a concession granted by the Privatisation Commission to Etisalat in post bidding backdoor negotiations. Financial experts termed such concessions for siphoning of money away from PTCL to Etisalat at the cost of public funds.

Privatisation of PTCL was challenged in the Supreme Court and a bench of SC headed by Chief Justice Iftikhar Chaudhry was hearing the petition just before his removal by Pervez Musharraf on November 3, 2007. The News tried to contact Sikandar Naqi, SEVP, PTCL but he declined to comment on it and disconnected the calls twice.

--
Regards,

Zubair Kasuri
Editor-in-Chief, Flare Magazine,

Cell: +92-321-519-7777
Landline: +92-51-2890054
Fax: +92-51-2891339

[Sajjad Zaidi]

Sorry to burst the bubble, but I just confirmed from a reliable resource in PTCL that the price hike is just a rumour, possibly part of a smear campaign. They say they have no such plans and such a drastic hike at this point would undermine their current strategy.

There should be an official rebuttal soon. Maybe someone from PTCL can comment on it here.

[Muhammed Nasrullah]

I'd be happy to hear that!

[Tee Emm]

Fingers crossed...

[Farhan Jaffer]

I got official tariff from PTCL & according to it, price increases for
DPLCs from 1 Km to 150 Km (Intra City E1s more exactly) ----- For
Data Services only. And that is effective from 1st July 2008.

No misconception :). We all are in trouble.

On Mon, Jun 30, 2008 at 4:54 PM, Sajjad Zaidi <sajja...@gmail.com> wrote:

[Asif Hanafi]

I don't think its a rumour there was a letter sent to ISP's as I did ask maxcom and they confirmed they have recieved a letter. The ISP association was planning to get a stay order and they lodged complaints with PTA as well.

What Zubair Kasuri says, I have no idea and Flare is known within the market to talk rubbish if they don't get ads.

[Babar]

PTCL is in a special category - Significant Market Player (SMP) - and
in theory the (sleeping) watchdog aka PTA is supposed to regulate it
as such. Only a subject matter expert / lawyer can tell if the leased
line rate hike violates their authority or not. But we have seen so
many incidents of blatant violations by PTCL that it is hard to
believe that they care about the telecom act or public.

[Zaeem Arshad]

PTA is aware of this tariff hike and there is some internal movement on it. They will have to step in whether they want it or not. What will be the outcome, we shall wait and see. :)


--
Zaeem

[hassan]

As per my info. PTA is supposed to endorse any change in pricing
strategies by SMPs. However PTCL must have served notices to
concerned dependent TLCO's or ISP's . If is not noticed then any one
can stand against this price hike.

On Jun 30, 9:36 pm, "Zaeem Arshad" <zaeem.ars...@gmail.com> wrote:
> PTA is aware of this tariff hike and there is some internal movement on it.
> They will have to step in whether they want it or not. What will be the
> outcome, we shall wait and see. :)
>
> --
> Zaeem
>

[Fawad Niazi]

Dear Its Pakistan !!!!!!!!!! No One is standing against PRICE HIKES, let it be of any nature !!!!!!!! Only those cry whose pocket is not supporting the specific commodity.

 

The end effectee would be "the normal user". Oil, Gas, Electricity and Telecom Services all are Luxurious Items in the eye of the Price Regulators.

Enjoy the Luxury and feel proud that now every one is using Luxury Items like Telecom Services in Pakistan. IS THERE ANY POVERTY?????

 

Sorry to be pessimistic but i wish i could hear some good news.

 

Fawad

 

[Tee Emm]

A kind soul perched very high in the PTCL headquarter just SMSed me
that the leased line tariff hike has been withdrawn. The two page
circular (of which at least the first page made it to my inbox via
some friends), has been withdrawn.

The nightmare seems to be over but it does serve as a food for thought
for the network planners everywhere in Pakistan.

To those who might have played a positive role at PTCL in getting this
decision reversed, I'd day a sincere Thank You.

-T

>  1733.gif
> 59KViewDownload

[Muhammed Nasrullah]

A thank you from all of us if its off! You're still at PTCL's mercy
I'm afraid. I'm curious though, why did they stop? Is it because the
media has made our voices loud enough or a hand unseen as it usually
is? Either way, onwards with the telecom revolution ;)

--
Sent from Gmail for mobile | mobile.google.com

[Ashar]

Media doesn't matter that much.

I think it is because of alternatives available. Wateen seems to be getting
its act together. Mobilink just launched its Wimax service.

PTCL probably saw the possibility of the smaller ISPs moving from PTCL DSL to
Wimax.

Ashar

--
BOFH excuse #409:

The vulcan-death-grip ping has been applied.

[Muhammed Nasrullah]

Wateen seems to be getting its act together.

I wouldn't bet on it

[Rehan Allah Wala]

Thanks for creating this mailing list TM, :)

As you can see IT DOES HELP !!!

Rehan Ahmed AllahWala
Msn/Yahoo/GoogleTalk/Email: Re...@Rehan.com
http://www.supertec.com/ - Internet Telephony Solutions
Http://www.DIDX.net - DID Number Market Place.
Don't Remember Me ? Visit http://www.Rehan.com

~~~~~~~~~~~~~~~~~~~
"First they ignore you, then they laugh at you, then they fight you, then you win."
By Gandhi.

"Live as if you were to die tomorrow. Learn as if you were to live forever." - Gandhi

[Babar]

I second the comments by Rehan and Ashar. Competition and public
awareness play an important role.

On Jul 2, 4:02 am, "Rehan Allah Wala" <re...@supertec.com> wrote:
> Thanks for creating this mailing list TM,  :)
>
> As you can see IT DOES HELP !!!
>
>
>
>
>
>
>
> >     Wateen seems to be getting its act together.
>
> > I wouldn't bet on it
>
> > On Wed, Jul 2, 2008 at 10:22 AM, Ashar <as...@xnet.com.pk> wrote:
> >     Media doesn't matter that much.
>
> >     I think it is because of alternatives available. Wateen seems to be getting
> >     its act together. Mobilink just launched its Wimax service.
>
> >     PTCL probably saw the possibility of the smaller ISPs moving from PTCL DSL to
> >     Wimax.
>
> >     Ashar
>
> >     On Tuesday 01 July 2008 12:41:11 Muhammed Nasrullah wrote:
> >     > A thank you from all of us if its off! You're still at PTCL's mercy
> >     > I'm afraid. I'm curious though, why did they stop? Is it because the
> >     > media has made our voices loud enough or a hand unseen as it usually
> >     > is? Either way, onwards with the telecom revolution ;)
>

> Http://www.DIDX.net- DID Number Market Place.
> Don't Remember Me ? Visithttp://www.Rehan.com

>
> ~~~~~~~~~~~~~~~~~~~
> "First they ignore you, then they laugh at you, then they fight you, then you win."
> By Gandhi.
>

> "Live as if you were to die tomorrow. Learn as if you were to live forever." - Gandhi- Hide quoted text -
>
> - Show quoted text -

[Haris Shamsi]

How about a tactical move that increase my cost and then level it back
again so that atleast I can maintain the same level of high costing
...... Think about it

/HS

--

[Ashar]

Do not ascribe to cunning that which can be explained by mere clumsiness.

Ashar