Telecom Operators Protest Staggering 300% Fiber Hike

An alarming customs ruling by the Federal Board of Revenue (FBR) drastically inflated the import valuation of Optical Network Terminals (ONTs), critical devices for fiber broadband services, prompting Telecom operators to insist it be revisited. In a letter to FBR Chairman Rashid Mahmood Langrial, the Telecom Operators Association (ToA) argued that the 300% increase will severely impact consumers and derail broadband expansion in Pakistan.

The contentious Valuation Order No. 1931/2024 raises ONT prices from $50 to $165 for devices with RF ports and $27 to $44 for Wi-Fi-only models. ToA claims these rates contradict actual invoices and market data, criticizing the Directorate General of Customs Valuation for ignoring import documents submitted by operators including PTCL.Official, Nayatel, CYBERNET and Transworld Home relying instead on arbitrary calculations instead.

The letter also flagged misconceptions in the valuation process, particularly the flawed association of RF ports with Wi-Fi standards. ONTs, the ToA emphasized, are vendor-specific and used solely in fiber-to-the-home (FTTH) setups, rendering local market comparisons irrelevant.

Warning of increased broadband costs and slowed digital progress, the ToA called for immediate intervention. Secretary General Kamal Ahmed stressed that unjust valuations threaten the affordability of broadband services and undermine #Pakistan’s Digital Vision, urging input from telecom and regulatory experts, Ministry of IT and Telecom Pakistan, Pakistan Telecommunication Authority (PTA), and PEMRA for equitable resolutions.