PTD draft directive on tariffs for telecom licensees

Telecom licensees in Myanmar have an obligation under their license to seek and obtain PTD approval for tariffs prior to launch of the relevant telecom services, pursuant to section 29 of the Telecommunications Law 2013 and Chapter 7 of the Competition Rules for Telecommunications Sector 2015.

PTD just published the Draft Telecommunications Tariffs Directive 2018 (“Directive”) on 18 May 2018 for telecom services. It is intended for telecom services provided to individual/SME end users, which also includes consumer protection measures. It does not apply to wholesale services or individualized services to large enterprises. Licensees have a general transition period of 90 days to comply this Directive once it comes into effect. The Directive, upon its becoming effective, will provide more guidance to licensees on PTD’s requirements of tariffs setting and promotion activities with consumers.

Key figures:

• Establishing an online reporting and approval system for tariffs and their changes (pre-launch of the particular services)
• Delay on reporting can lead to substantial fine (starting from 10,000,000 Kyats for each day of delay) and other disciplinary measures
• Quarterly and annual reporting requirement for information related to usage, revenue, subscribers and costs data (post-launch of services)
• Details of audit requirement
• Restriction on promotional offer to end users: For example, under 3.11, a licensee can offer no more than 25 standard packages at the same time and each standard package shall have at most 1 promotional offer. A promotional offer cannot last for more than 90 days and there should be an additional 180 days “calm-down” period for a new promotion to be raised again for the same standard package
• Consumer protection: For example, 3.24 (k) contains prohibition to bind end users with minimum contract term which exceeds 1 year; subscribers shall have the right to terminate the agreement with 30-day notice upon expiry of the minimum contract term. Similarly, licensees cannot charge advance deposit from end-users for fees more than 1-year services charges. It also requires licensees to report and get approval from PTD for tariffs publications to end users and establish consumer information access channel and complaint system. In addition, there is also limitation on usage of consumer data
• Restriction on “unlimited” offer: Under 3.24(d), licensees cannot describe an offer being “unlimited” if there is any limitation on data volume, etc. Inexplicitly PTD does not prohibit “unlimited” services as long as it’s truly unlimited.
• Code of conduct for advertisements: The name of licensee shall be identified in the advertisement. If a brand name is used, it should be registered and approved by PTD in advance. There is also rules on promotion related to quiz, competition and prizes. Further details please see 3.34.

The above figures are high-level readings of the Directive. If you have any query, please feel free to contact us. Thank you.