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Tuesday, October 14, 2025

PTCL Pays Rs460 Million Fine in Telecom Cartelization Case

The Competition Commission of Pakistan (CCP) has recovered nearly Rs500 million in fines from telecom operators involved in cartelization in the Long Distance International (LDI) segment of the sector.

According to CCP, Pakistan Telecommunication Company Limited (PTCL) has deposited Rs458 million, while M/s Link Dot Net has paid Rs35 million under penalties imposed for engaging in a prohibited agreement. Recovery proceedings against other LDI operators are still underway in compliance with orders of the Competition Appellate Tribunal.

The tribunal upheld CCP’s findings that LDI operators had entered into an International Clearing House (ICH) arrangement under which all incoming international calls were routed through a single PTCL-controlled gateway, forcing other operators to shut down their own. This arrangement fixed call termination charges at 8.8 US cents per minute—four times higher than previous rates—effectively eliminating competition in the market.

As a result, the cost of making international calls to Pakistan rose significantly, while operators’ revenues surged by more than 300 percent during the period of cartelization. The tribunal ruled that each operator must pay a fine equivalent to 2 percent of revenues earned under the unlawful agreement within 30 days.

CCP Chairman Dr. Kabir Sidhu reaffirmed the regulator’s commitment to enforcing competition law, stating: “Competition law will be implemented strictly. Business forums may play a positive role in information-sharing, but they can never be allowed to engage in price-fixing or anti-competitive agreements.”

The CCP emphasized that its enforcement action aims to protect consumer interests, ensure fair competition, and discourage collusive practices that inflate costs and restrict market efficiency.

 

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