Delayed MVNO framework to stall Pakistan's 5G spectrum auction in April

MVNo framework is finalised by PTA following extensive deliberations of all stakeholders
An undated image. — Pexels
An undated image. — Pexels

As the scheduled 5G spectrum auction, crucial for the rollout of 5G technology in Pakistan, has come around the corner, an unfavourable factor has emerged to stall the government's efforts to expedite the 5G launch.

Citing sources, ProPakistani reported that the delayed approval of the Mobile Virtual Network Operators (MVNO) framework is expected to cause substantial revenue losses for the government, especially in the impending 5G spectrum auction scheduled for April 2025.

The MVNO framework has been dragged by the Ministry of IT and Telecom for the past several months. Once approved, the framework will be vetted and finalised by the Ministry of Law.

Unless the MVNO framework approved and processed by the IT ministry, mobile operators will not purchase any additional spectrum, given it can not be allocated to MVNOs.

This delay has led to concerns surrounding the efficiency of the 5G spectrum auction, and a loss of millions of dollars it is likely to trigger.

The framework was finalised by the Pakistan Telecommunication Authority (PTA) in June 2024 following extensive deliberations of stakeholders involved. 

Under the revised MVNO framework draft, 15-year licences were proposed for MVNOs and the licence fee was slashed from $5 million to $140,000 to attract significant investment in Pakistan's telecom sector.