Pakistan moves toward opening MVNO licencing ahead of 5G rollout

ISLAMABAD: In a major development for investment in Pakistan’s telecom sector ahead of the planned 5G launch, the Ministry of IT has forwarded the Mobile Virtual Network Operator (MVNO) licencing framework to the federal cabinet for final approval, paving the way for the entry of smaller mobile operators.

The framework had been pending with the ministry for a year after the Pakistan Telecommunication Authority (PTA) submitted the draft in November 2023.

Officials said it has now been finalised following consultations with several international MVNOs, while the Ministry of Law and Justice has completed its legal vetting.

Under the revised structure, the licence fee has been reduced from $5 million to $140,000 to encourage investment, while the licence tenure has been extended to 15 years.

MVNOs will be required to obtain network access from existing operators and may operate by leasing capacity from Mobile Network Operators (MNOs), while independently managing their branding and customer services.

All commercial agreements between MVNOs and MNOs will require PTA approval.

Officials said the aim of the framework is to expand mobile services and enhance competition in the telecom market. Once approved by the cabinet, PTA will begin accepting applications.

The government aims to launch 5G in the first quarter of next year. Officials believe that allowing MVNOs will draw new investment into the telecom sector as major operators preparing for 5G may acquire additional spectrum and lease it to MVNOs.

According to the draft, MVNOs will be allowed to operate nationwide without owning spectrum, offering services through commercial arrangements with existing MNOs. The framework has been developed under the Telecommunications Policy 2015 and earlier policy guidelines issued in 2006.

Three categories of MVNOs

Reseller: Can use their own branding but limited to marketing services provided by the parent MNO.

Service Provider: May manage branding, customer care and billing independently, but restricted to the host operator’s services.

Enhanced Service Provider: Permitted to offer customised services using their own branding and applications but cannot deploy any radio or core network equipment beyond customer support and billing functions.

PTA has clarified that MVNOs may establish limited core infrastructure if mutually agreed with the parent MNO, but cannot deploy any access network elements.

Eligibility and Licencing Requirements

Only SECP-registered companies will be eligible to apply. Applicants must submit a technical and business plan, a draft commercial agreement with an MNO, and a letter of consent from both parties. Once requirements are met, PTA will issue a 15-year renewable licence. Termination of an agreement with the parent MNO may lead to licence suspension unless a replacement agreement is secured.

Service Quality and Consumer Protection

The draft places full responsibility for service quality and national security compliance on MVNOs. Operators must ensure nationwide customer support, manage billing disputes, and comply with PTA’s device identification and blocking systems (DIRBS). Neither the MNO nor the MVNO may suspend services without PTA approval, and any disputes must ensure uninterrupted consumer service.

Number Allocation

Numbering resources will be allocated to MVNOs through their parent MNOs, with blocks of 10,000 numbers per location. MVNO numbers will also be eligible for mobile number portability under existing regulations.