Pakistan has taken a decisive step toward liberalizing its telecom sector with the Mobile Virtual Network Operator licensing framework forwarded to the federal cabinet for final approval. The initiative is designed to attract investment, enhance competition, and set the stage for the country’s 5G rollout expected next year. By allowing new players to enter the mobile services market, the framework aims to strengthen Pakistan’s digital infrastructure and provide consumers with a broader range of telecom services.
The Ministry of Information Technology has submitted the MVNO licensing framework, which has been under review for nearly a year, following comprehensive legal vetting by the Ministry of Law and Justice. The policy now awaits cabinet approval, a critical step for its implementation. Key features of the framework include a substantial reduction in license fees, lowered from USD 5 million to USD 140,000, making it more attractive for investors and startups. Additionally, the license tenure has been extended to 15 years, offering long-term certainty for market entrants looking to establish sustainable operations.
Under the proposed framework, MVNOs will lease network capacity from existing mobile operators while independently managing customer services, branding, and marketing. This model allows new operators to offer innovative packages and services without the need to build their own infrastructure. All commercial agreements will require approval from Pakistan Telecommunication Authority, ensuring regulatory compliance and protecting consumer interests. Analysts suggest that this oversight will balance market flexibility with necessary regulatory safeguards, helping the industry transition smoothly into the 5G era.
Officials anticipate that the introduction of MVNOs will enhance market competition, diversify telecom offerings, and strengthen investment flows into the sector. The framework also supports mobile operators acquiring new spectrum for 5G by allowing them to lease excess network capacity to MVNOs, creating a mutually beneficial ecosystem. Once cabinet approval is granted, PTA will begin accepting applications and issuing licenses, paving the way for a new generation of mobile services in Pakistan and expanding digital opportunities for consumers and businesses alike.
The MVNO policy is being widely viewed as a critical enabler for Pakistan’s digital growth. By lowering entry barriers and providing a clear regulatory framework, the initiative encourages innovation and ensures the telecom sector is well-prepared for 5G adoption. Stakeholders are hopeful that this move will accelerate service expansion in urban and rural areas, enhance customer choice, and position Pakistan as a more competitive player in the regional telecom market.
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