MVNO Policy Approved as Pakistan Moves Closer to 5G Rollout

The federal cabinet has approved the long-awaited Mobile Virtual Network Operator (MVNO) framework, a key policy move aimed at enabling a more efficient and targeted 5G spectrum auction in Pakistan.

Official sources said the approval was granted through circulation of the summary submitted by the Ministry of Information Technology and Telecommunication (MoITT), clearing a regulatory hurdle that had delayed the formal entry of virtual mobile operators into the telecom market.

Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja is expected to hold a media briefing later on Friday to outline the details of the new framework and its implications for the sector.

What the MVNO Framework Allows

A Mobile Virtual Network Operator is a telecom service provider that does not own radio spectrum. Instead, MVNOs enter commercial agreements with licensed Mobile Network Operators (MNOs) to deliver mobile communication and next-generation services under their own brand.

Under the newly approved framework, MVNOs will be allowed to offer nationwide services in Pakistan in line with Clause 9.11.1 of the Telecommunications Policy 2015, read together with the Policy Guidelines on Mobile Network Operators and Mobile Virtual Network Operators.

Officials said the move is designed to introduce service-level competition without further fragmenting spectrum ownership, especially as Pakistan prepares for its first 5G spectrum auction.

Link to the 5G Auction

The MVNO framework is expected to play a strategic role in guiding spectrum demand and improving decision-making during the upcoming 5G auction. By separating infrastructure-heavy operators from service-based players, policymakers believe the auction can be structured more realistically, with lower financial stress on existing operators.

The Pakistan Telecommunication Authority (PTA) finalized the draft framework last year and forwarded it to the ministry for approval. The delay had raised concerns within the industry, particularly as consolidation and rising costs continued to reshape Pakistan’s telecom market.

License Duration and Fee Structure

According to the approved framework, MVNO licenses will be issued for a period of 15 years, with the option of renewal. A nationwide upfront license fee of $140,000 has been set, payable in Pakistani rupees at the prevailing exchange rate.

MVNOs will rely on the networks of existing mobile operators but will be allowed to operate independent brands, design tailored packages, and target specific customer segments, including enterprise users and digital-first consumers.

Regulatory Contributions and Financial Rules

MVNOs will be required to pay annual regulatory contributions, including Universal Service Fund (USF) and Research and Development (R&D) fees. These contributions will be calculated based on the combined revenues of the MVNO and its parent MNO.

While inter-operator costs can be deducted, the framework specifies that any charges billed back to the host MNO cannot be claimed as expenses. Officials say this provision is intended to ensure transparency and prevent revenue shifting.

PTA Oversight and Contractual Conditions

All agreements between MNOs and MVNOs will require prior approval from the PTA. If an MVNO terminates its agreement with a host operator and fails to sign a new one, its license will be suspended until a fresh agreement is submitted to the regulator.

The framework supports multiple MVNO models, ranging from basic reseller arrangements to full MVNOs that operate their own core network infrastructure.

Service Quality and Security Obligations

MVNOs will be required to meet service quality standards, operate a customer help line, and establish at least one customer care center in every city where services are offered.

They must also comply with national security requirements, including lawful interception, SIM registration, and data management protocols, in line with existing telecom regulations.

Market Impact

Industry observers say the approval of the MVNO framework could attract new investment, encourage innovation, and create room for smaller and niche players in Pakistan’s telecom sector. By boosting competition at the service level, the policy is also expected to add momentum to the long-delayed rollout of 5G services.

With regulatory clarity now in place, attention is expected to shift toward the timeline and structure of the 5G spectrum auction, which remains a critical milestone for Pakistan’s digital connectivity ambitions.