The federal cabinet has approved the long awaited Mobile Virtual Network Operator framework, marking a key policy development for Pakistan’s telecom sector as preparations continue for the upcoming 5G spectrum auction. Official sources confirmed that the approval was granted through circulation of a summary submitted by the Ministry of Information Technology and Telecommunication. Federal Minister for IT and Telecommunications Shaza Fatima Khawaja is expected to brief the media on the new framework, which is intended to improve market structure, guide spectrum planning and create space for new service providers without altering the core role of existing mobile network operators.
Under the approved framework, an MVNO is defined as an operator that does not own spectrum but instead enters into commercial arrangements with licensed Mobile Network Operators to deliver mobile communication and next generation mobile services under its own brand. The policy allows MVNOs to offer nationwide services in line with clause 9.11.1 of Telecommunications Policy 2015 and the related policy guidelines governing MNO and MVNO relationships. By enabling service based competition rather than infrastructure duplication, the framework is expected to support more efficient use of spectrum and provide regulators with clearer insight into actual market demand ahead of the 5G auction process.
The framework outlines a 15 year MVNO license with a nationwide upfront fee of $140,000, payable in Pakistani rupees. MVNOs will rely on existing operator networks while retaining the flexibility to design customized packages, pricing structures and customer focused services. In addition to the upfront fee, license holders will be required to pay annual regulatory contributions, including universal service fund and research and development charges, calculated on the basis of combined revenue with their host MNOs. While inter operator costs may be deducted, any amounts billed back to the host operator cannot be claimed as expenses, ensuring transparency in financial reporting and regulatory compliance. The license will be renewable at the end of its term, subject to regulatory conditions.
Operational continuity has also been addressed in the policy. If an MVNO terminates its agreement with a host operator and fails to secure a new arrangement, the license will be suspended until a fresh agreement is submitted to PTA. The framework supports multiple MVNO business models, ranging from basic reseller arrangements to full MVNOs that operate their own core network elements. All commercial agreements between MNOs and MVNOs will require prior approval from PTA, reinforcing regulatory oversight and service quality standards across the sector.
In terms of consumer protection and national requirements, MVNOs will be obligated to maintain defined service quality benchmarks, operate a customer help line and establish at least one customer care center in every city where services are offered. They must also comply with national security obligations, including lawful interception capabilities and SIM management protocols, aligning their operations with existing telecom regulations. PTA had completed the draft framework last year and forwarded it to the ministry for approval, with the stated aim of expanding investment opportunities and allowing smaller and specialized players to enter the telecom market without the heavy capital burden of spectrum ownership.
The approval of the MVNO framework is expected to add momentum to Pakistan’s telecom landscape by encouraging service innovation and competition while complementing the planned 5G spectrum auction. By separating service provision from spectrum ownership, the policy provides regulators and industry stakeholders with a clearer picture of market needs, potentially supporting more targeted spectrum allocation decisions. At the same time, it opens the door for new business models that focus on niche segments, digital services and customer experience, contributing to broader sector growth under the existing regulatory structure.
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