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Ispak demands

55pc cut in

PTCL rates

ISLAMABAD: Internet Service Providers Association of Pakistan (Ispak) has welcomed the decision of Pakistan Telecommunication Company Limited (PTCL) lower the international data circuits rates up to 25 percent and termed it a right step for promoting internet and information technology in Pakistan.

The president Ispak, Sanaullah Bhutta in a press statement here however demanded a further reduction of 55 percent in the PTCL rates in order to bring them at par with the rates prevailing in the region.

"Chief Executive, Gen Pervez Musharraf, in his address to the nation had assured a substantial reduction in PTCL's charges of leased circuits, but PTCL has recently reduced these charges by only 25 percent", he observed.

Terming the cut very low, Bhutta demanded a further reduction of 55 percent in PTCL rates to bring them at par with the rates prevailing in the region.

The president Ispak maintained, that it was agreed in the Economic Advisory Board that PTCL will revise its tariff on the basis of cost plus profit basis keeping the regional tariffs in mind.

Sanaullah Bhutta claimed that Dr M Akram Sheikh, Secretary, Ministry of Communication also stated that ideally it should be lower than the tariffs in Dubai.

"In Dubai, the full 2 Mbps TCP/IP unshared circuit with equipment cost US$13,661 per month and in Malaysia it costs US$2,700 per month", he added.

"PTCL is still charging a very high profit margin around 400 percent on its international leased circuits", he claimed and added if the price of international circuits is based on cost plus profit basis as is the standard practice in all business ventures, cost of quality internet service could be bring down to Rs 15 per hour by the ISPs.

Bhutta assured that all ISPs would be willing to provide a very heavy discount on the internet services to the educational institutions if the rates of PTCL are further brought down in the light of directives of the chief executive.

He said in addition to the discount, each ISP would provide 20 free connections to educational institutions all over the country if PTCL reduces its rates by 80 percent as originally demanded.

He also demanded the early implementation of formation of an IT Division under the Ministry of Science and Technology and stated that competent IT professionals should be inducted in this division to make it a success.

Bhutta emphasised that with the widespread adoption and acceptance of IT, a developing country like Pakistan which has missed the road to development in last couple of decades, can take leap frog and join the new industrialised economies within a short span of time.

"IT has become a key to economic development and Pakistani IT industry can only grow if the infrastructure and telecom facilities are available at cheapest costs, the president Ispak concluded.ÑAPP