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Committee concerns about Ufone’s continued financial losses
BeNewz Report
The Senate Standing Committee on IT and Telecom has expressed serious concern over Jazz’s additional billing of more than Rs 6 billion from consumers and its poor quality of service. The meeting, chaired by Senator Palwasha Khan of the Pakistan Peoples Party (PPP), saw members question the Pakistan Telecommunication Authority (PTA) and Jazz over rising tariffs without matching service improvements.
The committee chairperson asked whether Jazz provides better service quality when it raises tariffs, noting that consumers are paying more but not receiving value in return. PTA Chairman agreed that Jazz faces persistent quality issues and said the regulator is working on them.
Senator Nadeem Bhutto of PPP told the committee he has been using Jazz since 2010 but often cannot connect calls, adding that his father frequently scolds him over the poor service. He further noted that Jazz’s network is almost non-existent on highways, where only 2G coverage is available. Bhutto questioned whether the PTA regulates service quality in addition to tariffs.
In response, the PTA Chairman clarified that the authority regulates tariffs and consumer protection, and no company can increase tariffs without prior approval. He said objections raised in an audit report had already been addressed and were based on a misunderstanding.
The PTA Chairman admitted that Jazz increased tariffs by 19% in 2024, but insisted that the regulator’s role is to maintain balance in the market. He added that Ufone is the only telecom company currently incurring losses, while other operators remain profitable.
He explained that the shortage of spectrum is a major factor behind poor service quality, though the PTA is fully prepared for spectrum auctions. However, he noted that the Ufone-Telenor merger has been delayed for 18 months, further straining the telecom market. The PTA recently requested Prime Minister Shehbaz Sharif to expedite spectrum auctions to improve service delivery.
Pakistan’s telecom sector has long struggled with issues such as call drops, weak coverage, and overbilling. With over 190 million mobile subscribers, the majority rely on networks such as Jazz, Zong, Ufone, and Telenor. Industry experts believe that unless spectrum auctions are completed and infrastructure investment is made, mobile internet and call quality will not improve significantly.
The Senate committee instructed the PTA to closely monitor future tariff hikes and ensure strict oversight of service quality to safeguard consumer rights. It was also agreed that the government should be urged again to accelerate spectrum auctions to expand and strengthen telecom services nationwide.
Telecom companies in Pakistan have often prioritized profitability over service, leaving consumers dissatisfied. Experts argue that stricter regulatory enforcement and timely government action could bring Pakistan’s telecom infrastructure closer to regional standards. At the close of the meeting, senators emphasized that Jazz and other operators must improve service quality and eliminate unjustified overbilling to restore public confidence in the sector.
Committee also concerned about Ufone’s continued financial losses
The Senate Standing Committee on IT and Telecom expressed serious concern over Ufone’s continued financial losses. The meeting also featured briefings from PTA officials and the Ministry of IT on rising tariffs, cartelization, and persistent service quality issues.
PTA officials told the committee that although cartelization exists in many sectors of Pakistan, the telecom industry has been kept competitive. They said Jazz wanted to increase tariffs further but was restrained, adding that if any customer is overcharged, refunds are ensured. When asked by the committee chair if PTA supported Jazz’s recent tariff hikes, the PTA Chairman replied firmly: “I will not defend Jazz under any circumstances.”
Lawmakers also criticized Ufone. Senator Humayun Mohmand claimed the company continues to suffer losses due to lingering government influence. However, Senator Afnanullah countered that Ufone’s management is entirely private and the government has no operational role.
The IT Secretary said service quality problems primarily stem from the delay in spectrum auctions. He noted that Pakistan is currently operating with 274 MHz of spectrum, which is insufficient to meet rising demand. Internet slowdowns, he explained, are the result of limited network capacity, while several spectrum-related cases remain pending in courts. Senator Saifullah Niazi asked who had filed these cases, reflecting lawmakers’ frustration over delays.
Pakistan’s telecom sector, with more than 190 million subscribers, has long faced complaints of poor service, frequent call drops, and rising tariffs. The PTA maintains it blocks unjustified tariff hikes and works to protect consumers, but spectrum auction delays and legal hurdles remain major obstacles to improvement.
Experts argue that if the government accelerates spectrum auctions and regulatory oversight is strengthened, Pakistan’s telecom infrastructure can improve significantly. The committee stressed that Jazz, Ufone, and all other operators must deliver better quality services and stop overcharging customers to restore public trust.
