The Telecom Operators Association (ToA) has appealed to the Federal Board of Revenue (FBR) Chairman, Mr. Rashid Mahmood Langrial, to revise a customs valuation ruling that drastically increases the import valuation of fiber broadband routers, also known as Optical Network Terminals (ONTs).
According to the association, the valuation has risen by 300%, which will have a significant financial impact on end users and hinder Pakistan’s broadband development.
The association, in a letter addressed to the FBR Chairman, highlighted that Pakistan Customs has raised the valuation price of ONTs from $50 to $165 per unit for devices with RF (cable TV) ports, and from $27 to $44 for Wi-Fi-only devices.
The decision, formalized in Valuation Order No. 1931/2024, contradicts actual import invoices and market trends, the letter claimed. The ToA warned that this move threatens the affordability of broadband services, which are critical for the government’s Digital Pakistan Vision.
Leading operators including PTCL, Nayatel, Cybernet, and Transworld had previously submitted detailed import documents to the Directorate General of Customs Valuation, requesting that customs duties be based on authentic transactional values. However, the association expressed disappointment that the directorate disregarded these submissions and set arbitrary valuations. They emphasized that ONTs are specialized devices used exclusively in fiber-to-the-home (FTTH) networks and are vendor-specific, making them unavailable in local markets for a comparative price survey.
The association also criticized the customs valuation process for ignoring technical realities. The letter pointed out the erroneous correlation between RF ports and Wi-Fi generations, stating that the RF port is solely for cable TV connectivity and has no bearing on internet or Wi-Fi capabilities. Furthermore, the valuation’s differentiation based on Wi-Fi standards—Wi-Fi 4, 5, 6, and 7—was described as arbitrary and disconnected from the actual functionality of ONTs.
Telecom operators warned that the inflated valuations could lead to a significant increase in the cost of broadband services, making them unaffordable for many households. This, they argued, would not only slow down fiber broadband deployment but also jeopardize Pakistan’s efforts to achieve its digital connectivity goals.
ToA called for the involvement of experts from the Ministry of IT & Telecom, Pakistan Telecommunication Authority (PTA), and PEMRA in the valuation process to ensure fair and informed decisions.
The association urged the FBR Chairman to intervene and revise the valuation ruling immediately. “The arbitrary valuation of ONTs would jeopardize fiber broadband development in the country, which is totally contradictory to the Digital Pakistan Vision of the Government of Pakistan,” stated Kamal Ahmed, Secretary General of ToA, in the letter.
