The Competition Commission of Pakistan (CCP) has recovered Rs495 million in penalties from Long Distance International (LDI) operators involved in the controversial International Clearing House (ICH) arrangement. The recovery includes Rs458 million from Pakistan Telecommunication Company Limited (PTCL) and Rs37 million from Link Dot Net, according to an official statement.
The enforcement action follows the Competition Appellate Tribunal’s decision, which upheld CCP’s ruling that the ICH agreement was illegal and anti-competitive.
Background of the ICH Case
Introduced in 2012, the ICH agreement centralized all international incoming calls through a PTCL-controlled gateway. This setup fixed termination rates at 8.8 US cents per minute—over four times the earlier rate. As a result, competition was eliminated, overseas callers faced higher costs, and operators enjoyed windfall revenues exceeding 300 percent.
Originally, CCP had imposed penalties equal to 7.5% of each operator’s annual turnover. The Tribunal later reduced these to 2% of ICH-related revenues, directing operators to deposit the fines within 30 days.
CCP’s Warning Against Market Abuse
Commenting on the recovery, CCP Chairman Dr. Kabir Sidhu reiterated the regulator’s resolve to strictly enforce competition laws. He stressed that while industry forums may facilitate information-sharing, they must not be exploited for price coordination or collusion. He further warned against market manipulation, abuse of dominance, and exploitation of consumers.
The CCP emphasized that its enforcement actions are intended to safeguard fair competition and protect consumers from anti-competitive practices in the telecom sector and beyond.