FCC Prevents Pakistan from Over-Charging Outside Telecommunications

On the off chance that you have to make a call to Pakistan, you’re probably worried about long-distance charges. Well, the FCC (News - Alert) recently issued an order that would stop U.S. telecommunications providers from paying rates above those set prior to October of 2012.

That was when telecommunications providers in Pakistan increased the cost of calling to the country by over 500 percent – a move that many protested, and is now on ice.

Vonage (News - Alert) Holdings Corp. spoke out in favor of the FCC’s order, as they were among those outraged at the price increase, and petitioned for the FCC to intervene.

Before the increase, Vonage added Pakistan to Vonage World, its flat-rate international calling plan, as an unlimited calling destination. But the sharp price increase would have been a stumbling block to that plan.

Fortunately, that’s no longer an issue, thanks to the FCC’s orders. Telecommunications providers from outside of Pakistan can continue to offer services to the country without being charged through the nose, so competition in and out of the country can continue at a healthy pace.

"Vonage is extremely disappointed in the exorbitant price increase imposed by the Pakistani providers,” said Michael Tempora, Vonage’s senior VP of Product Management. “The increase hurts consumers and prevents us from providing greater value to our Pakistani customers. Vonage appreciates the efforts of the United States government and the FCC. We are hopeful that this Order will spark a prompt reduction in calling rates so that consumers can once again afford to call Pakistan with the freedom and frequency they enjoyed before.”

Even if competition is tough, it must be fair. If one wishes to compete with outside telecommunications providers, the proper way to do so is to provide better and more affordable services – not force them to pay extra to make calls to the area.

The FCC made a wise decision with its order, and not only does Vonage thank them, but telecommunications providers everywhere.