Ministry of Information Technology and Telecommunication in Pakistan is set to approve the long-awaited Mobile Virtual Network Operator (MVNO) framework, which is expected to revolutionize the telecom sector. This new initiative is poised to bring significant growth opportunities by enabling small companies to operate under their own brand names while utilizing existing Mobile Network Operators (MNOs) infrastructure. The final draft of the MVNO framework has already been submitted to the ministry for approval after being reviewed by PTA.
The introduction of MVNO services in Pakistan is expected to pave the way for increased competition, enhanced customer service, and improved telecom offerings across the country. Under the proposed framework, companies will be granted 15-year licenses to operate as MVNOs, giving them ample time to establish their brand and expand their reach. The licenses will allow companies to offer customized services using the infrastructure and spectrum of MNOs, essentially creating new business models without having to own their own spectrum or build their own network.
The initial license fee for a nationwide MVNO license is set at US $140,000, which must be paid upfront in either US dollars or its equivalent in Pakistani rupees. This payment will be based on the current exchange rate at the National Bank of Pakistan. This fee structure aims to ensure that only committed companies will be able to enter the MVNO market while contributing to regulatory costs.
The framework allows MVNOs to work on different business models depending on their level of service. These models include resellers, service providers, enhanced service providers, and full MVNOs. Resellers will primarily market services provided by MNOs under their own brand, while service providers will have the freedom to offer their own branding, marketing, customer care, and billing services, although they will still rely on MNOs for the core telecom services. Enhanced service providers will be allowed to provide their own customized services along with MNO services, and full MVNOs will be able to operate independently with the option of installing their own network equipment, apart from access networks.
Once approved, the MVNO framework will allow MNOs to enter into commercial agreements with one or multiple MVNOs, and vice versa. The framework sets out clear operational guidelines, with agreements between MNOs and MVNOs defining the scope of their services. Importantly, the MVNOs will have to meet the same quality of service standards set by PTA for MNOs, ensuring that customers receive high-quality services regardless of the operator.
The quality of service will be the responsibility of the MVNO, which will also hold customer ownership. As part of their obligations, MVNOs will be required to meet national security requirements, such as ensuring lawful interception, providing data records, and meeting PTA’s SIM activation/deactivation requirements. They will also be expected to have customer care centers in each city of operation and a nationwide helpline available 24/7.
MVNOs will also be accountable for managing customer complaints, resolving billing disputes, and ensuring compliance with the Pakistan Telecommunication Authority’s standards. To operate, MVNOs must submit a Code of Commercial Practice and a Standard Contract of Service to PTA for approval, adhering to the agreed-upon practices to ensure transparent, fair, and efficient operations.
MVNO framework offers a fresh opportunity for small companies to enter Pakistan’s telecom market and provide innovative, customer-centric services. It is expected to promote increased competition and result in better quality, affordable services for consumers, while also offering a more sustainable model for small businesses within the telecom sector.
With PTA’s focus on enhancing Pakistan’s telecom infrastructure, the MVNO framework represents a major milestone in the country’s digital transformation. It opens up new doors for innovation, enabling smaller operators to thrive while benefiting from the established networks and resources of larger MNOs. As this framework awaits final approval, the future of Pakistan’s telecom industry looks promising, with new entrants bringing diversity, affordability, and higher-quality services to the marketplace.
