CCP (Competition Commission of Pakistan) has fined Bahria Town for misusing its dominant position to prevent the access to any other CIT service other than PTCL for its residents.
CCP issued a notice to Bahria Town, the real estate business and fined with PKR 2 million for denying access to other CIT service. The notice also allowed Nayatel, a telecom company that was refused NOC (No Objection Certificate) by the housing authority to provide their services to residents of housing colony. A copy of the notice is available with Outlook Pakistan.
Residents couldn’t subscribe to any service other than PTCL, as later has effectively monopolized the respective area that is Phase 1-6 of Bahria Town.
Notice also directed the Nayatel and Bahria Town to conduct a survey report by an official surveyor registered with PEC (Pakistan Engineering Council) to verify whether there is enough physical space, including in footpaths to lay down new CIT infrastructure network and then file its report with the office the registrar.
CCP took action after a resident informed the authority through an email that Bahria Town was compelling its residents of phase 1-6 to use CIT service only by PTCL, thus depriving them of utilizing their choice of service. No other service providers could be availed as authorities didn’t give NOC to the Nayatel to operate in Phase 1-6 of Bahria Town Rawalpindi.
CCP found the housing authority violating Section 3 of the Competition Act 2010, as it abused its dominant status to allow the monopoly of one service provider in its colony.
Ironically, the said housing scheme that operates in all the major cities of Pakistan and promises to provide its residents are the luxuries, was causing sufferings to its customers by denying to access the CIT services of other companies.