PTA has finalized its draft framework for Mobile Virtual Network Operators (MVNOs), setting the stage for smaller companies to enter the telecommunications market. Following extensive consultations with stakeholders, PTA will now submit the draft for federal government approval.
Under the proposed framework, MVNOs will be granted 15-year licenses, allowing smaller companies to operate under their own brand names and offer tailored services. In a significant policy shift, PTA has dramatically reduced the MVNO license fee from $5 million to $140,000, making it more attractive for investors to enter the market.
The draft also outlines that MVNOs will be able to establish commercial partnerships with one or more Mobile Network Operators (MNOs) and operate through revenue-sharing agreements. However, MVNOs will not be permitted to install their own radio or core network infrastructure. They will still be responsible for ensuring high-quality services and maintaining uninterrupted connectivity for their customers.
The financial structure of the MVNO-MNO partnership is also defined. Parent MNOs will handle all regulatory fees and contributions based on the combined revenue generated, while MVNOs will pay annual numbering fees through their parent MNOs. The initial MVNO license will be valid for 15 years, with an option for renewal.
PTA has posted the revised draft on its website after incorporating feedback from industry stakeholders. The initial draft was published in June, after which PTA invited comments and suggestions before finalizing the framework. Approval from the federal government is expected in the coming months.
