Home »Telecommunication » Pakistan » PTA chalks out viable framework for wireless telephony operators

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  • Jun 10th, 2017
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Pakistan Telecommunication Authority (PTA) has prepared financially viable and technologically compatible framework for wireless telephony operators, as Wireless Local Loop (WLL) sector is rapidly losing its ground and subscribers. The framework highlights the legislative issues and summarises the consultation made with the stakeholders for its implementation in the light of the Telecom Policy 2015.

The WLL technologies, which used to be popular in various far-flung areas and mountainous regions, have failed to sustain their businesses in urban and rural areas in the face of increasing competition with mobile phone companies, which have not only penetrated with their services in the most parts of the country, gradually, but, also grabbed the share of WLL sector.

Hence, the subscriber base of WLL has not only remained stagnant but has been on the decline for the past many years despite introduction of reduced calls packages for customers. This framework is aimed at focusing on possible options for regulatory remedies for limited mobility services. With the increasing demand of high speed mobile broadband networks, technological advancement on the standards developed by ITU, IEEE, ETSI, 3GPP, 3GPP2 and the regulatory provisions on limited mobility, various solutions are being explored to ensure an acceptable outcome for fixed and mobile sector.

According to PTA data, WLL services commenced in 2004 during the time when the fixed telephony sector was the biggest in terms of connections and sector-wise growth. The WLL sector was set up to tap in areas where landline services could not be provided due to their location and economic non-viability.

In parallel, mobile phone services were introduced with a couple of operators but their services were too costly at the time. The WLL sector rapidly lost its ground and lost subscribers, along with the closure of services by various operators. The subscriber base stood at 375,653 at the end of 2016.

On the other hand, the cellular sector gradually expanded its services and network in the same period with the arrival of new operators in subsequent years. Their subscriber base stood at 12.7 million by June 2005 which surged to 139 million by end of 2016. The PTA initiated consultation with the stakeholders last year in August with an aim to bring stability in the WLL sector under its licensing limits and a few allowances which should not hurt the interests of the cellular sector.

The PTA has updated its Draft Framework on Regulatory Remedies and Solution for Service Provision by WLL operators, which comprises of proposed solutions for short-term and long-term basis, commercial and technical relief to WLL operators and concerns of competitors mainly mobile phone operators.

According to the framework, the WLL should be allowed the use of handheld devices, however no data connection will be provided without associating it with the corresponding mobile directory number (MDN) through BVS in order to maintain PTA's numbering plan and address security concerns. The WLL operators shall continue to follow 'Determination on Implementation of Limited Mobility.'

Further, the customers shall be allowed to use their WLL connections with full mobility within the licensed region. In no circumstances, inter-region mobility will be allowed. However, the licensee shall pay certain costs for availing such mobility. The long-term measures will include the review of the existing Licensing Framework in accordance with the current market state and the latest trends in telecommunication service provisions. The new licensing regime may propose unification of licenses thus providing an opportunity for WLL operators to redefine their business strategies.

Spectrum trading and sharing frameworks are also being prepared, enabling the wireless operators to increase spectrum efficiency resulting in provision of high quality services at competitive prices. The mutual agreements/arrangements between the WLL operators will provide a lifeline to ailing industry.

Globally, the WLL sector encountered strong competition not within the sector alone but against the cellular sector as well, due to advanced technology, huge investment and faster penetration in the consumer market. Alternatively protecting investor and consumer interests, regulatory watchdogs of different countries have taken measures to revive the sector and utilise the availability of infrastructure and spectrum for the country.

In India, the Indian Basic Service Operators (BSO) initially offered limited mobility WLL service in their coverage area. However, licenses were offered later on, with unified licensing and additional payment in line with costs of the mobile spectrum.

In Bangladesh, Broadband Wireless Access (BWA) licenses were issued for establishing broadband networks using WiMAX technology. The operators and end-users were allowed to use their equipment in fixed locations, in a nomadic manner or with a fully mobile capability, by choice.

In UK, OFCOM issued 15 regional FWA licenses to the UK Broadband which was then converted into a single nation-wide license with restriction on power limits and use of fixed wireless terminal. After detailed consultation with stakeholders, these two restrictions were relaxed and operators were allowed to provide services using mobile devices without any additional cost.



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