Telecom operators slam 300% router price hike

The Telecom Operators Association (TOA) has voiced alarm over a 300% surge in fibre broadband router prices, stating that the increase undermines the government’s Digital Pakistan Vision and threatens the expansion of broadband services nationwide.

In a letter to the Ministry of Information Technology and Telecommunications and the Federal Board of Revenue (FBR), the TOA argued that Valuation Order No. 1931/2024 has sharply increased the prices of optical network terminals (ONTs), specialized devices used in fibre broadband networks.

The ruling has raised the price of ONTs with RF ports from $50 to $165 per unit, and Wi-Fi-only ONTs from $27 to $44. The TOA highlighted that these devices, which are crucial for fibre broadband services provided by companies like PTCL, Nayatel, and others, are not locally produced and are imported from international vendors like Huawei and ZTE at global market rates.

The telecom industry criticized the valuation as arbitrary, stating that it disregards actual import invoices and does not reflect current market conditions. Additionally, it questioned the pricing method used by Customs, which links prices to Wi-Fi speed generations (Wi-Fi 4, 5, 6, and 7) without any technical basis for doing so.

The TOA warned that the increased import costs would drive up the prices of internet equipment, undermining efforts to expand broadband and meet the government’s fibre-to-the-home (FTTH) objectives. This could lead to higher costs for consumers and slow the nationwide spread of affordable internet services.

The TOA has urged the IT ministry to address the issue with the FBR, calling for valuations to be based on actual import data from the last six months, with regular reviews every six months. The association also called for greater transparency in the price determination process and for consultation with regulatory bodies like the PTA to ensure informed decision-making.