The Telecom Operators Association (TOA) has expressed serious concerns about a 300% increase in the price of fibre broadband routers, warning that the price hike contradicts the government’s Digital Pakistan Vision and could hinder broadband expansion across the country.
In a letter addressed to the Ministry of Information Technology and Telecommunications, as well as the Federal Board of Revenue (FBR), the TOA argued that the valuation set by the customs department is unrealistic and does not reflect actual market prices. According to the association, Valuation Order No. 1931/2024 issued by Pakistan Customs has raised the price of optical network terminals (ONTs) with RF (cable TV) ports from $50 to $165 per unit. Meanwhile, the price of Wi-Fi-only ONTs has also increased from $27 to $44.
ONTs are specialized networking devices used exclusively by fibre broadband operators, including PTCL, Nayatel, Cybernet, and Transworld, among others. The telecom industry claims that the valuation ruling is arbitrary, ignores actual import invoices, and fails to consider global market rates. The association pointed out that ONTs are not manufactured locally and must be imported from vendors like Huawei, ZTE, and Fiberhome at standard international prices.
The TOA expressed its disappointment that its submissions to the customs department had been disregarded and that an unreasonably high valuation had been imposed. The situation has been further complicated by the customs department incorrectly assigning separate prices based on Wi-Fi speed generations (Wi-Fi 4, 5, 6, and 7), despite there being no technical correlation between RF ports and Wi-Fi speeds.
One member of the TOA warned that the increased import costs would lead to inflated prices for internet equipment, ultimately burdening the efforts to expand broadband access. The telecom sector believes this arbitrary price hike could directly impact the affordability of broadband for home users, slowing the country’s fibre-to-the-home (FTTH) development and hindering broadband penetration—directly conflicting with the government’s goal of expanding high-speed internet access.
The TOA urged the IT ministry to address the issue with the FBR urgently to ensure a fair, market-driven valuation. The association also emphasized the need for consultations with the Ministry of Information Technology, Pakistan Telecommunication Authority (PTA), and Pakistan Electronic Media Regulatory Authority during the valuation process for informed decision-making.
The TOA called for a transparent valuation mechanism, recommending that customs’ valuations be based on actual import data from the past six months, with biannual reviews to prevent arbitrary pricing. The association also requested that customs provide clear documentation outlining the price determination process to improve transparency and accountability.
