CAT upholds CCP ruling on abuse of market power in right-of-way case

KARACHI: The Competition Appellate Tribunal (CAT) has upheld a ruling by the country’s antitrust regulator against Peshwar Electric Supply Company (Pesco), directing it to restore right of way (ROW) access for broadband and cable operators on fair, reasonable and non-discriminatory terms. The tribunal instructed the utility to formulate a revised ROW policy within 30 days, after dismissing its appeal against the Competition Commission of Pakistan’s (CCP) earlier finding that it had abused its dominant market position.

The case originated from complaints by licensed telecom and broadband service providers that alleged discriminatory pricing practices in the use of electricity poles for aerial fibre installations. The CCP’s investigation found the utility was charging significantly higher fees to internet operators than to local cable companies -- Rs100 per pole compared to Rs10.

Rather than addressing the pricing disparity, the utility’s board opted to revoke ROW access for all service providers. The CCP subsequently determined this action violated Section 3 of the Competition Act, 2010, citing abuse of dominance in a market with no practical alternatives for pole access.

During appellate proceedings, the CCP argued that the company’s conduct conflicted with government-issued Public and Private Right of Way Policy Directives, which permit licensed operators to access public infrastructure for network expansion, subject to standardised fees.

The CCP reiterated that electricity distribution companies hold a dominant position in the ROW market within their jurisdictions and called for a uniform policy framework to facilitate broadband rollout, while ensuring safety and operational integrity.