TARIQ JAVAID, J. - The petitioner claims to be a licensee Electronic Media Regulatory Authority, running business of Cable T.V. Network and providing service to the public in Chak No. 172/WB Thingi Moor Tehsil and District Vehari since 6.12.2006 and has the licence of category "R". It is maintained that after having granted the licence for rural area to the petitioner, a licence for rural area to the petitioner, a licence has been, issued to respondent No. 4 in category "B-4", whereby respondent No. 4 is also providing the facility of Cable T.V. Network to the public in Chak No. 172/WB aforesaid. According to the learned counsel, the category "R" means a licence for rural area whereas Category 'B-1' to 'B-10' pertain to a licence granted for urban areas. Learned counsel for the petitioner further contends that a licensee having licence to provide services in the urban area cannot be allowed to provide services in the rural areas, It is further contended that the petitioner being licensee of Pakistan Electronic Media Regulatory Authority, running business of Cable T.V.
Network in rural area had spent huge amount and if respondent No. 4 is allowed to provide the said facility then the petitioner shall not be able to promote his business, as in case of rural area one has to spend a lot of money Cable T.V. Network in a large area to a small population whereas in case of urban area due to density of population, meaning thereby that there are more consumers in a relatively much smaller area, a small investment enures more benefit, hence respondent No. 4 is encroaching upon the rights of the petitioner.
2. On the other hand, respondents have appeared and they have opposed the petition on the ground that under the law respondent No. 1 has a right to issue licence of any kind of Cable T.V.
Network and that no infringement of the petitioner's right has been made, It is not denied that respondent No. 4 is also providing service to the rural area, It is also argued that according to the Gazette Notification the petitioner has CTV licence only for Theengi More in rural category whereas the respondent No. 4 has licence for Vehari City, Theengi More, Luddan, Machiwal and Pipli Adda under Category B-4. Respondents Nos. 1 to 3 pressed into service the provisions of Section 23 of the P.E.M.R.A. Ordinance, 2002 and maintained that a fair competition be afforded hence the petition merits dismissal.
3. There is no doubt that for a healthy business environment a free competition is to be allowed, It is not the fair competition which has been called in question, In fact it is a most unfair advantage being canvassed by the respondents. Admittedly, the petitioner has been granted licence on payment of usual fee to operate in a rural area, whereas the respondent No. 4 is a licensee to operate in an urban area. If the case of the respondents is that more than one licensee, can operate in an area, then a fair competition means that licensees of rural area, may compete with each other, in similar operating conditions, in rural areas. Similarly licensees in urban areas would compete with licensees in urban areas.
4. Once a distinction has been made and different categories are provided, then a fair competition would mean a competition amongst licensees in the same category. For a competition between licensees of all categories in one area would simply amounts to elimination of category made on the basis of areas. Table V made under Rules 7 and 12 is reproduced as under:- THE GAZETTE OF PAKISTAN EXTRA. MARCH 27. 2009 SCHEDULE-D [Fee for grant of licence for operating a cable TV station] Licence Category No. Of Subscriber Licence fee Annual Renewal + Rs. 21- per subscriber per month. Fee for Additional Head end R 500 15,000/- 7,500/- - H Upto 25 15,000/- 7,500/- - rooms H"L Upto 100 rooms 20,000/- 10,000/- H-ll Above 100 rooms 50,000/- 25,000/- B Upto 500 10,000/- 10,000/- - B-1 Upto 1000 60,00n/- 30,000/- 30,000/- B-2 Upto 3000 80,000/- 40,000/- 40,000/- B-3 Upto 5000 100,000/- 50,000/- 50,000/- B-4 Upto 7000 1,50,000/- 75,000/- 75,000/- B-5 1 upto 10,000 1,75,000/- 87,000/- 75,000/- B-.6 Upto 25,000 3,50,000/- 1,75,000/- 75,000/- B-7 Upto 50,000 5,25,000/- 2,62,000/- 75,000/- B-8 Upto 100,000' 8,75,000'/- 3,50,000/- 75,000/- B-9 Upto 200,000 1,400,000/- 7,00,000/- 1,00,000/- B-10 Above 200,000 1,75,000/- 8,75,000/- 1,00,000/-
5. After having perused the above table can we say that a licensee in category H can supply services in category R or B-1 to B-10? The only logical answer would be 'No'. Similarly a licensee in category 'R' cannot be expected to render services to a consumer in category H. On the same analogy it can safely be presumed that a licensee in category R cannot provide services to the urban areas. As a necessary corollary a licensee of any 7 category 'B' cannot be allowed to provide services to consumers falling in rural areas. Duplication cannot be allowed. Any area falling in category 'R' cannot be classified as area falling in category 'A' as well. -The same area cannot be placed in one category.
6. It is -also noticed that distinction has been made in urban as well as rural areas and different categories of licensees, It would be a fair competition if areas are not intermingled, that is, the areas defined as rural areas should not be included in urban areas, meaning thereby, a licensee who has been granted licence to operate in an urban area must complete with the licensee in urban areas. Similarly a licensee having licence in rural area must compete with the licence in rural area. Otherwise a distinction in category of licence on the basis of area would become meaningless.
7. With the above observation this petition is allowed with no order as to costs.