CAT upholds CCP decision against PESCO

May 23, 2025 (MLN): The Competition Appellate Tribunal (CAT) has upheld the decision of the Competition Commission of Pakistan (CCP) against Peshawar Electric Supply Company (PESCO).

The CAT has directed it to restore the Right of Way (ROW) facility on fair, reasonable, and non-discriminatory terms for all service providers, including fiber optic and local internet/cable TV operators.

Disposing of the appeal, the CAT further directed PESCO to formulate a new policy within 30 days, as per the press release issued.

The CCP had initiated an enquiry after receiving formal complaints from Cyber Internet Services (Private) Limited and Nayatel (Private) Limited, alleging discriminatory practices in ROW charges.

The investigation revealed that PESCO was charging Rs100 per pole from internet service providers like Nayatel, while demanding only Rs10 per pole from local cable TV operators.

Following the issuance of a show-cause notice by CCP, PESCO’s Board of Directors annulled its existing policy and decided to withdraw the ROW facility entirely for all service providers, including both cable TV and fiber optic operators.

In its final order, the Commission found that PESCO had abused its dominant position, constituting a violation of Section 3 of the Competition Act, 2010.

During proceedings before the CAT, CCP’s counsel argued that PESCO’s actions contravened the Public and Private Right of Way Policy Directives issued by the Government of Pakistan.

The counsel further highlighted that, under the prevailing legal framework, licensed service providers are entitled to use poles owned by government-managed or private electricity distribution companies for aerial fiber optic installations.

This is allowed upon payment of government-determined rent.

The CCP maintained that PESCO holds a dominant position in the ROW market within its service jurisdiction, as it solely owns and controls the electricity poles used for such installations, with no viable alternatives available to service providers.

The Commission has reiterated its recommendation to all electricity distribution companies to develop a uniform and non-discriminatory policy for right-of-way and broadband deployment.

This policy should address legitimate space, access, and safety concerns in the process.

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