PTA plans “Accounting Separation” Law for Telecom Licensees

Ayesha Anwar
By Ayesha Anwar
4 Min Read
PTA Accounting Separation Law

Pakistan Telecommunication Authority (PTA) planed “Accounting Separation (1st Amendment) Regulations 2024” according to which licensees with fixed and mobile licenses must keep separate accounts for each category of license.

According to draft regulations, the licensee will have to put together yearly Separated Accounts for the following Business Units as explained by these Regulations:

  1. Network relating to licensed system.
  2. Retail related to licensed services.
  3. Telecom region-wise.
  4. License-wise.
  5. Non-licensed activities.

Accounts for fixed networks must be separated into Access Network and Core Network. It is essential for the licensee to assemble separate accounts specifying its retail operations according to licensed services. All non-licensed actions might be reported as “Retail-Remaining Activities.” The main knocked-down activities under the “Retail” business unit serve as examples.

According to PTA, the licensee that provides licensed services (retail level) to the wholesale licensee (e.g., Mobile Virtual Network Operator) is required to have an accounting separation system that will accommodate the levels of cost and the costs avoided by the wholesale service provisions.

The operators of Significant Market Player (SMP) must manage proper cost accounting systems in accordance with the 2007 Guidelines on ‘Cost Accounting Methodologies for Accounting Separation Purposes’ in order to attain this administrative commitment.

The Separated Accounts must have adequate degree of separation to accommodate the expenses and income of each Licensed Service. From time to time, the Authority or the officers of the Authority may provide directions, clarifications or instructions to make sure that these regulations are understood. These may include the following:
  1. Regulatory accounting principles.
  2. Regulatory accounting conventions.
  3. Transfer charging.
  4. Costing methodologies for Accounting Separation.

 

TAGGED:
Share This Article
Leave a comment