Government Finally Moves MVNO Framework to Cabinet, Clearing Path for Targeted 5G Auction

After a year of unexplained delays, the Ministry of Information Technology and Telecommunication has finally submitted Pakistan’s long-awaited Mobile Virtual Network Operator (MVNO) framework to the federal cabinet for approval. The move is being viewed as a critical prerequisite for a more strategic and efficient 5G spectrum auction, particularly as telecom revenues remain under pressure and network investments slow.

Sources familiar with the development confirmed that the framework had been pending at the Ministry for nearly twelve months despite being finalized by the Pakistan Telecommunication Authority (PTA). It was only after pressure from the Prime Minister’s Office that the Ministry accelerated the process and forwarded the draft to the cabinet. The approval is expected to be tabled in an upcoming meeting.

Why the MVNO Framework Matters for the 5G Auction

At the core of the MVNO framework is a simple objective: to establish clarity around spectrum use, operational structures, and commercial partnerships before Pakistan moves toward 5G. Officials believe that the absence of an approved MVNO model has hindered investor confidence, complicated auction planning, and discouraged service-based operators from entering the market.

Telecom analysts argue that MVNOs could bring competition to an industry dominated by a few major players—offering tailored plans, digital-first services, and sector-specific mobile packages without the cost of building full-scale network infrastructure.

License Structure, Fees, and Regulatory Contributions

The framework proposes 15-year MVNO licenses aimed at attracting both domestic and foreign companies. Instead of owning radio spectrum, MVNOs would rely on commercial agreements with mobile network operators (MNOs) to offer mobile and next-generation services under their own brand names.

The initial fee for a nationwide MVNO license is set at $140,000, payable upfront in Pakistani rupees at the National Bank of Pakistan’s TT selling rate.

Financial obligations mirror those of traditional operators. MVNOs will contribute to the Universal Service Fund (USF) and Research & Development (R&D) levies. The fees will be calculated based on combined annual gross revenue of both the MNO and MVNO. Certain inter-operator costs and mandated payments can be deducted, but charges billed by MVNOs back to MNOs cannot.

Operational Safeguards and License Suspension Rules

If an MVNO’s agreement with its parent MNO ends prematurely and no alternative agreement is in place, the MVNO license will be suspended. It can only be restored once a new valid agreement is submitted to the PTA. According to officials, the rule is designed to protect consumers from abrupt service disruptions.

Four MVNO Models Proposed for Pakistan

The framework outlines four internationally recognized models:

• Reseller: Uses MNO services entirely but markets under its own brand.

• Service Provider: Similar to a reseller but handles billing and customer care.

• Enhanced Service Provider: Offers customized services with limited network elements.

• Full MVNO: Possesses core network elements and offers full services except radio access.

MNOs and MVNOs must jointly submit business plans, technical rollout details, and draft agreements for PTA approval. Changes to agreements cannot be made without prior regulatory consent.

Customer Service, Security Requirements, and DIRBS Compliance

The regulatory compliance burden on MVNOs will be substantial. Each licensee must establish at least one customer service centre in every operational city and maintain a nationwide 24/7 helpline.

MVNOs must also comply with:

• lawful interception

• SIM activation/deactivation protocols

• national data management standards

• PTA’s Device Identification Registration & Blocking System (DIRBS)

These requirements aim to ensure that MVNOs operate with the same level of security, hygiene, and consumer protection as traditional operators.

Parent MNOs will also face obligations. They cannot alter or discontinue MVNO services without PTA’s approval, preventing anti-competitive behavior or unilateral disruptions.

A Crucial Step Toward a More Competitive Telecom Market

Industry observers say approval of the MVNO framework is a pivotal milestone as Pakistan prepares for its long-delayed 5G spectrum auction. With sector revenues stagnating, rising operational costs, and shrinking capital expenditure, MVNOs could inject fresh competition, expand digital service offerings, and diversify market participation.

If approved by the federal cabinet in its next session, Pakistan could see its first MVNOs enter the market as early as 2026, a shift that may reshape pricing, service differentiation, and consumer choice in an industry long dominated by a handful of operators.

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