Telecom operators are warning that sharp increases in infrastructure costs could soon push up the price of internet and telecom packages for consumers across Pakistan. The warning comes from the Pakistan Telecommunication Access Providers Association (PTAPA), which represents major internet and infrastructure providers.
How Much Costs Have Risen
According to PTAPA, the annual rent for aerial cable at the Quaid-e-Azam Industrial Estate has jumped 600 percent, from Rs. 50 to Rs. 300 per meter. For underground infrastructure, the one-time Right-of-Way (ROW) fee has risen 333 percent, from Rs. 300 to Rs. 1,000 per meter, while the underground annual rent has doubled, climbing 200 percent from Rs. 100 to Rs. 300 per meter. A related supervision fee has also increased 213 percent, from Rs. 80 to Rs. 250 per meter.
Industry’s Objection
PTAPA argues that Right-of-Way charges should be based on a “no-profit-no-loss principle,” meaning fees should cover the actual cost of administering and supervising infrastructure work rather than functioning as a revenue stream for local or provincial authorities.
The association has approached both Punjab’s provincial authorities and the federal government, seeking urgent intervention on the new infrastructure permission fees before they translate into higher costs for end consumers.
What This Could Mean for Consumers
Internet service providers typically pass a portion of rising infrastructure costs on to subscribers through package pricing. If the fee increases remain in place without government intervention, telecom operators say the added cost of laying and maintaining cable infrastructure could eventually be reflected in higher monthly internet bills.
For now, PTAPA’s appeal to federal and provincial authorities represents the industry’s main effort to head off price increases before they reach consumers, though no formal response from the government has been announced yet. The association has separately warned that unrelated procurement rules could create more loss-making state enterprises like PIA.
What Is Driving the Cost Increase
Internet Packages May Get Costlier as telecom operators cite rising costs for tower maintenance, fiber rollout, spectrum fees, and imported equipment priced in dollars, all of which have become more expensive amid currency pressure and higher energy tariffs. Operators say these combined infrastructure costs have made it increasingly difficult to sustain current pricing without passing at least part of the burden onto subscribers.
Impact on Consumers
If prices rise, millions of broadband and mobile data users could see higher monthly bills at a time when household budgets are already stretched by inflation in other essential categories. Small businesses and freelancers who depend heavily on stable, affordable internet for remote work and e-commerce are particularly concerned about the potential squeeze on their operating costs.
Industry Response and Government Talks
Telecom industry bodies have reportedly raised the issue with regulators, seeking relief measures such as reduced spectrum fees or duty exemptions on network equipment to avoid passing the full cost increase to end users. Officials have not yet announced a final decision, and discussions between operators and the government are said to be ongoing before any formal tariff revision is approved.
What Happens Next
Consumers are advised to watch for official announcements from their service providers before assuming automatic price hikes, as any changes typically require regulatory review and public notice periods. Analysts say a moderate, phased price adjustment is more likely than a sudden across-the-board increase, given the sensitivity around telecom affordability in the current economic climate.