The Mobile Termination Rate (MTR) will be checked by the Pakistan Telecommunication Authority (PTA) as it is considering making off-net calls even cheaper, official documents revealed. In protecting smaller players and automatically rationalizing retail tariffs especially for off-net calls, the MTR plays a critical role.
An analysis of the current MTR at Re 0.90 per minute was needed to change the market structure of the cellular segment in Pakistan. PTA and MTR of 90 paisa per minute were decided in 2010 and no operator was permitted to charge less than that. The MTR is essentially the amount that when a call is made to another network, the receiving operator is obliged to charge.
After a comprehensive discussion, PTA reduced the MTR from om 90 paisas to 80 paisas from 1 January 2019, for all forms of calls (local, long-distance, international incoming) terminated on mobile networks from other mobile networks or fixed networks and further reduced it to 70 paisas in 2020.
Due to the prevailing dynamics of the market, mobile operators demanded a reduction in the MTR. The PTA has therefore sought a review from all stakeholders for their feedback. Furthermore, the documents revealed that the MTR will be measured in compliance with international best practice. It is hoped that the revised MTR will allow customers to lower their tariffs.
