ISLAMABAD- The Pakistan Telecommunication Authority (PTA) has barred Star TV Company from selling its network and decoder distribution in Pakistan with immediate effect following the company’s tariff dispute with the cable operators.

The PTA, through an official order, suspended the licence of Star TV Company for decoder distribution and selling TV Network in Pakistan.

“They have been directed to get their tariff approved from the PTA as per licence conditions,” said a PTA announcement.

The order asks the Star TV to fulfil the relevant clauses of Cable TV Rules announced by the Government and Cable TV and decoder regulations by the PTA. The PTA announcement said Star TV arbitrarily fixed its own tariff instead of applying for such fixation by the PTA under the rules.

Shahid Hamid, Star TV area administrator for the twin cities, was not available for immediate comments.

Star TV has been charging Rs 9,600 per year from subscribers for its decoders. However, after the issuance of licence by the PTA, the company fixed its tariff at its own and asked cable operators to deposit Rs 93,000 in three equal instalments of Rs 31,000 per month. It fixed Rs 86 per customer per month but total monthly charges per customer amounted to Rs 100, including sales tax. The company also asked cable operators to arrange at least 350 customers or to pay charges for 350 subscribers.

Cable operators contract was renewable at the same rate but the operators were bound to subscribe for at least 700 connections within few months. This was not acceptable to Pakistan Cable TV operators as they wanted the Star TV Company to match its charges with those in India where cable operators were paying at the rate of Rs 20 to 25 per customer.
Source: The News
Date:12/15/2000