Pakistan Telecommunication Authority has proposed a comprehensive licensing framework for Mobile Virtual Network Operators, marking a significant step towards expanding competition and innovation in Pakistan’s telecom sector. The draft policy introduces an initial license fee of $140,000 for new entrants and outlines a structured regulatory pathway for companies looking to offer mobile communication services without owning network infrastructure. The move signals a shift in regulatory strategy aimed at opening the market to new business models while maintaining oversight through defined compliance and operational standards.
Under the proposed framework, Mobile Virtual Network Operators will be allowed to provide telecom services across Pakistan through agreements with existing Mobile Network Operators, subject to prior approval from PTA. This model enables new entrants to operate without investing in spectrum or core network infrastructure, instead relying on partnerships with licensed operators to deliver services. While the framework allows flexibility in branding, service packages, billing systems and customer management, it places clear restrictions on infrastructure ownership, preventing MVNOs from building their own radio access networks or entering into independent roaming and interconnection arrangements. The scope of operations will also exclude Azad Jammu and Kashmir and Gilgit Baltistan, with all connectivity routed through approved channels.
The draft also defines a range of mandatory services that MVNOs must provide, including access to emergency services, operator assistance and both national and international long distance connectivity through arrangements with Long Distance and International operators. The licensing term has been set at 15 years, with renewal subject to performance and compliance review. Operators will be required to apply for renewal at least 30 months before expiry, allowing the regulator to assess their operational history and adherence to regulatory standards. In addition, provisions related to Significant Market Power have been included, enabling PTA to introduce corrective measures if any operator gains excessive influence in the market, ensuring fair competition is maintained.
Financial obligations under the framework extend beyond the initial license fee, with MVNOs required to pay an Annual License Fee of 0.5 percent of gross revenue after deductions, along with contributions of 1.5 percent to the Universal Service Fund and 0.5 percent towards research and development. Payments must be made within specified timelines, with penalties applied in case of delays. The framework also mandates strict data retention and security requirements, requiring operators to maintain detailed call records, internet session logs and related data for at least one year, to be provided to PTA when required. By encouraging local innovation, technology transfer and participation in research initiatives, the proposed framework reflects a broader effort to modernise Pakistan’s telecom landscape while supporting sustainable growth and service diversification.
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