PTA Draft Ready for a Year, Why Is MVNO Framework Still Stuck?

Key Points

• • • • PM Shehbaz Sharif instructed the IT Ministry to expedite the MVNO framework in a pre-cabinet briefing last year
      • Policy expected to support upcoming spectrum auctions and attract new investors
      • License validity set at 15 years, with $140,000 nationwide fee
      • MVNOs required to ensure full compliance with PTA quality, security, and device-tracking standards
      • One-year delay now creating regulatory uncertainty for telecom sector

Pakistan’s long-awaited Mobile Virtual Network Operator (MVNO) framework, positioned as a major policy reform to expand digital services and competition, remains in limbo more than a year after Prime Minister Shehbaz Sharif directed its swift completion.

According to official sources, the Prime Minister was given a detailed pre-cabinet briefing on the draft Pakistan MVNO framework last year, where the Ministry of Information Technology and Telecommunication (MoITT) was instructed to accelerate the process and present it before the cabinet for approval. However, despite the Pakistan Telecommunication Authority (PTA) submitting a final version for review, the Ministry has yet to act, causing concern among industry stakeholders.

A Policy Designed to Expand Telecom Competition

MVNOs allow companies without radio spectrum or network infrastructure to sell mobile services under their own brand by leasing capacity from established Mobile Network Operators (MNOs). The framework aligns with Clause 9.11.1 of the Telecommunications Policy 2015, which enables MVNO operations in Pakistan.

Officials say the policy is designed to support future market growth by:

• Introducing new service providers and business models

• Encouraging specialized and low-cost telecom offerings

• Opening fresh investment avenues for local and foreign companies

• Supporting digital inclusion and next-generation mobile services

Industry experts believe the MVNO model could help Pakistan move towards a more innovative telecom environment, as seen in Europe and the Middle East, where dozens of MVNOs operate successfully.

License Terms and Fee Structure

The framework proposes 15-year MVNO licenses, renewable through mutual agreement with the PTA. Smaller companies would be allowed entry with a more affordable fee structure compared to full-fledged MNOs.

Nationwide MVNO License Fee: $140,000, to be paid upfront in Pakistani rupees based on NBP’s Telegraphic Transfer selling rate a day prior to payment. Additionally, parent MVNOs will be liable for annual regulatory dues, including Universal Service Fund (USF) and Research & Development (R&D) contributions, calculated on aggregate annual gross revenue from combined MNO-MVNO services.

However, deductibles are capped:

• Inter-operator and PTA/FAB-mandated payments may be deducted

• Any cost charged back by the MVNO to its parent MNO is not deductible

The PTA believes these provisions ensure fair revenue sharing and prevent artificial cost inflation.

Service Continuity and Customer Protection Rules

To safeguard consumers, the framework mandates that MVNOs:

• Maintain at least one customer care centre per operational city

• Provide a 24/7 nationwide helpline

• Ensure compliance with PTA’s quality of service benchmarks

MVNOs must fully implement national security protocols, including lawful interception, data retention rules, and SIM activation/deactivation procedures. They are also required to integrate with PTA’s Device Identification Registration and Blocking System (DIRBS) to prevent the use of lost or stolen phones, a critical step for curbing handset black markets.

To avoid any type of service disruption, MNOs must maintain uninterrupted wholesale access for MVNOs and cannot halt or alter service without PTA’s approval. They must give three months’ notice before discontinuing services If an MVNO’s agreement with its MNO partner ends and a new agreement is not secured, the license will be suspended and can only be restored once a valid agreement is submitted to PTA.

Clarity Needed Before Spectrum Auction

The MVNO framework was supposed to be finalized before the spectrum auction, helping clarify availability and business viability for new entrants. Without the policy in place, investors and potential MVNO operators face uncertainty about:

• Partnership models

• Wholesale pricing

• Regulatory obligations

• Timelines for market entry

A telecom policy consultant said that delaying such frameworks “signals slow regulatory responsiveness” at a time when Pakistan urgently needs investor confidence to strengthen its digital economy.

Pakistan MVNO framework Delay: Why it Matters

Pakistan’s telecom sector continues to wrestle with high operational costs, heavy taxation, and evolving 4G/5G investment requirements. With mobile broadband penetration plateauing, stakeholders argue that new service providers could expand consumer choice, drive pricing competition, and help underserved clusters access services

What Comes Next

Insiders say the Ministry is still “completing its internal homework” before sending the framework to the federal cabinet. But with more than a year gone by, frustration is mounting in a sector already strained by economic headwinds.

As Pakistan positions itself for future 5G deployments and broader digital transformation, analysts stress that regulatory pace must match technological ambition.

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