Pakistan likely to welcome new telecom players with MVNO approval

Pakistan's Mobile Virtual Network Operator (MVNO) framework is close to obtaining final approval from the IT ministry
An undated image. — iStock
An undated image. — iStock

Pakistan's telecom sector has come on the brink of having more telecom comapnies as the Mobile Virtual Network Operator (MVNO) framework is close to obtaining final approval from the IT ministry.

This delay has created uncertainty for companies eager to enter the expanding market. The Pakistan Telecommunication Authority (PTA) has completed the MVNO framework draft and submitted it for approval, which, once granted, will allow small companies to provide mobile services without the need for costly network infrastructure.

MVNOs do not own radio spectrum; instead, they partner with existing Mobile Network Operators (MNOs) to sell mobile services under their own brand.

The new framework will grant MVNO licenses valid for 15 years, requiring an upfront fee of $140,000 or its equivalent in Pakistani Rupees, along with annual regulatory fees based on total revenue.

The framework outlines four MVNO types: Reseller, Service Provider, Enhanced Service Provider, and Full MVNO, each with varying degrees of operational freedom.

Both MNOs and MVNOs must submit a joint technical and business plan to the PTA, which will only issue licenses upon meeting all requirements.

MVNOs are also required to adhere to PTA standards and national security regulations to ensure service quality, while MNOs cannot disrupt MVNO services without PTA consent.