MOITT advances MVNO licensing plan ahead of 5G spectrum auction

MVNOs are expected to utilise to maintain service quality benchmarks and operate customer support helplines
An advertising board is seen during the first demonstration of the technology 5G in Lisbon, Portugal June 4, 2018. — Reuters

An advertising board is seen during the first demonstration of the technology 5G in Lisbon, Portugal June 4, 2018. — Reuters

The Ministry of Information Technology and Telecommunication (MOITT) forwarded the long-delayed Mobile Virtual Network Operator (MVNO) licensing framework to the federal cabinet on Wednesday.

The policy, pending for nearly a year, is expected to shape a more strategic approach to spectrum planning and attract new investment into the telecom sector.

Pakistan’s MVNO licensing policy framework

The MVNO framework is designed to support a more targeted 5G auction by defining the need for spectrum and providing opportunities for smaller players to enter the market. 

The draft was completed by the Pakistan Telecommunication Authority (PTA) last year before sending it to MOITT for approval.

Under the proposal, MVNOs would have 15-year licences with a nationwide upfront fee of $140,000 payable in local currency. 

Meanwhile, even though MVNOs would be dependent on the incumbent mobile operators' networks, they would be allowed to operate under their own brand names and customise their service models.

The policy also states annual regulatory requirements, including USF and R&D fund contributions, which would be payable annually based on the combined revenues with the partnering MNO. While it allows deduction of inter-operator costs, any charges billed back to the MNO cannot be claimed as expenses.

In case the MVNO decides to terminate its agreement with the host operator and fails to finalise a new agreement, its licence shall be suspended until fresh documentation is filed with the PTA. Renewals shall be for the same 15-year framework.

The provided framework caters to several MVNO models, ranging from simple resellers to full MVNOs with their own core network infrastructure. All commercial agreements between MVNO and MNO have to be approved by the PTA.

MVNOs will be required to maintain service quality benchmarks, operate customer support helplines, and run at least one service centre in every active city. They must also comply with national security protocols, including lawful interception and SIM management standards.