New Telecom Players on the Horizon as PTA Sends MVNO Draft for Approval
Pakistan’s telecom sector is waiting for a major development. The Mobile Virtual Network Operator (MVNO) framework is still awaiting final approval from the Ministry of Information Technology and Telecommunication. This delay has created uncertainty for companies planning to enter this growing market. The Pakistan Telecommunication Authority (PTA) has already done its part. PTA has completed the MVNO framework draft and sent the final version to the Ministry for approval. Once approved, this framework will open new doors for small companies to offer mobile services without owning expensive network infrastructure.
New Telecom Players on the Horizon as PTA Sends MVNO Draft for Approval
What is an MVNO?
An MVNO is a company that does not own any radio spectrum. Instead, it makes commercial deals with existing Mobile Network Operators (MNOs). The MVNO then sells mobile services to its own customers under its own brand name.
License Details
Under the new framework, an MVNO license will be valid for 15 years. Companies will have to pay an initial license fee of $140,000 or its equivalent in Pakistani Rupees. This fee must be paid upfront.
An MVNO will also pay annual regulatory fees and contributions. These include the Universal Service Fund (USF) and Research & Development (R&D) contributions. These fees are based on the total annual revenue from both the MNO and MVNO services.
If an agreement between an MVNO and its parent MNO ends before the 15 years, the license will be suspended. It can be restored only if the MVNO signs a valid deal with another or the same MNO.
See Also: MVNO Licensing in Pakistan- How it Could Reshape the Telecom Industry
Different MVNO Models
The framework allows four types of MVNOs:
- Reseller: Uses its own brand and marketing but only sells services of the parent MNO. No network equipment allowed.
- Service Provider: Similar to a reseller, but can handle its own billing and customer care.
- Enhanced Service Provider: Can offer its own customised services in addition to the parent MNO’s. Limited network elements may be installed.
- Full MVNO: Has the most freedom. Can install its own core network elements and offer all services like an MNO, except owning radio access equipment.
How it Will Work
Both the MNO and MVNO must submit a joint technical and business plan to PTA. They must also submit their commercial agreement. The PTA will grant the license only when all requirements are met.
MVNOs can install their own network elements if allowed in their agreement. However, any changes to the agreement need the PTA’s approval.
Service Quality and Security
The MVNO must ensure good service quality for its users. It must follow PTA’s standards. It also has to meet all national security rules. This includes lawful interception, proper record keeping, and SIM card rules.
Parent MNOs cannot stop or disrupt services to MVNOs without PTA’s permission. Likewise, an MVNO cannot stop services to its customers without giving at least three months’ notice.
Customer Care
Since MVNOs own their customers, they must handle complaints and provide support. Each city where an MVNO operates must have at least one customer care centre. A 24/7 helpline must also be available nationwide.
An MVNO must also settle billing disputes and other complaints as per its scope. It must submit its code of practice and standard contracts to PTA for approval.
Next Steps
Once the Ministry gives its final approval, small businesses will have a chance to launch their own mobile services. This could attract new investment and create more competition in the telecom sector. However, until the final green light is given, companies can only wait and hope the delay does not hold back this much-needed progress.
