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  • Nov 7th, 2005
  • Comments Off on Gimmickry on part of LDI operators irks consumers
"What! It's only been 10 minutes, how come I was disconnected?"

Yes, it has been continuously happening to the innocent customers falling prey to the gimmicks posed on print, electronic and outdoor media by the Long Distance and International (LDI) operators.

The telecom watchdog agency has been unable to control ongoing gleaming offers by Long Distance and International (LDI) operators constantly misguiding the consumers on airtime tariff.

It is being noted that the LDI operators are campaigning openly about extra airtime on scratch cards for calling abroad, but this is not the case.

These operators are not informing properly the users about other hidden charges and deductions on purchase of these cards, at present flooding in the market.

Prepaid calling cards currently sold by the telecom companies in the country contain scant information about tariff and taxes charged by the government.

Fierce competition between the telecom companies selling calling cards, including Pakistan Telecommunication Company, has been responsible for a sharp decline in tariff over the past couple of months, users complain that prepaid calling cards do not show exactly what tariff is charged and how much tax they have to pay.

A Long Distance and International (LDI) Licensee is licensed under the Act to establish, maintain and operate a public fixed switched network for the provision of nation-wide long distance and international telephony service.

The government charges a 15 per cent general sales tax and a 10 per cent withholding tax on prepaid calling cards. But the advertisements aired and published on various media promise more talk-time, which is not the case, these advertisements contain insufficient information misguiding the innocent consumers who believe to get more but are tricked.

For instance, a calling card claims a long distance and international call for Rs 5 per minute, the consumer purchases a Rs 100 card believing to have 20 minutes, but when the card is consumed, a blow to consumer's expectation, the line is disconnected after 13 minutes. Yes the call charges are Rs 5 per minute but the taxes including advanced income tax, are there as well in addition to the Rs 5, which was concealed in the publicity campaign.

The complaints of the victimised users are increasing day by day against such menace. It may be mentioned here that the Pakistan Telecommunication Authority (PTA) about a few months back directed all telecom operators not to misguide the users on airtime rates and directed the operators to compulsorily mention at the time of advertising of any package the complete details of taxes liable to be paid by the consumer.

But the marketing staff of such operators paying no heed to the directives continues to play the gimmickry with the so-called concessional campaign, without any check.

On the other hand, the agency (PTA) should properly check the quality of service being provided by these operators and under the law penalise any one failing to provide the standard of service defined in the licence clauses.

It has also been known that the toll-free helpline numbers mentioned on calling cards are mostly engaged. At times, prepaid calling cards do not work at all and users can turn to no consumer care centre to get their money back.

The Authority after observing that the advertisement campaigns by the LDI operators do not essentially inform their consumers about the government taxes such as GST/Advance Income Tax included in their tariffs.

Such type of misleading advertisements have misguided the consumers as tariffs for certain destinations cost them substantially higher then the advertised tariffs.

In order to minimise consumer complaints relating to the tariffs and to create better awareness among subscribers regarding the true tariff structure of these telecom operators, the PTA issued directives to the operators to avoid gimmickry. LDI operators have been directed to clearly advertise each category of national and international long distance calls made to fixed numbers excluding government taxes. The higher tariffs for different destinations should also be publicised adequately while the terms and conditions of pulse duration, first pulse charges and subsequent pulse and validity of the advertisement, directives added.

This is not the first time that these directives have been issued but these would serve nothing unless and until properly implemented studded by strict checks and control.

Copyright Business Recorder, 2005


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