Pakistan Opens Doors for MVNOs with New Licensing Framework

In a major step toward improving competition and innovation in the telecom sector, the Pakistan Telecommunication Authority (PTA) has introduced a draft licensing framework for Mobile Virtual Network Operators (MVNOs). This new policy outlines how MVNOs will operate in Pakistan and sets an initial license fee of USD 140,000.

The proposed framework is designed to allow new players to enter the telecom market without the need to build expensive infrastructure. Under this model, MVNOs will provide mobile services by partnering with existing Mobile Network Operators (MNOs). These partnerships will be based on commercial agreements that must be approved by the PTA. Through such arrangements, MVNOs can offer services using the network resources of established operators.

Pakistan Opens Doors for MVNOs with New Licensing Framework

However, the scope of operations comes with certain geographical limits. MVNOs will be allowed to operate across Pakistan but will not be permitted to offer services in Azad Jammu & Kashmir (AJ&K) and Gilgit-Baltistan (GB). This restriction reflects existing regulatory and jurisdictional considerations.

The framework clearly defines the services that MVNOs must provide. These include essential telecom features such as access to emergency services, operator assistance, and both national and international calling options. For international connectivity, MVNOs will rely on agreements between MNOs and Long Distance & International (LDI) operators. The PTA also retains the authority to require additional services if needed.

One of the notable aspects of the policy is the flexibility given to MVNOs in branding and customer experience. Companies will be allowed to operate under their own brand names and design service packages tailored to specific market segments. They can also establish their own customer care systems and billing platforms. Despite this flexibility, MVNOs will not be allowed to own or deploy core telecom infrastructure, use spectrum, or create independent roaming agreements.

The license will remain valid for 15 years, with an option for renewal. Operators must apply for renewal at least 30 months before the license expires. The PTA will review the operator’s performance and compliance record before making a decision.

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To maintain fair competition, the framework introduces rules for managing market dominance. If an MVNO is found to have Significant Market Power (SMP), it will be subject to additional regulatory controls to prevent unfair practices and ensure a level playing field.

Consumer convenience is also a key focus. The policy requires full implementation of Mobile Number Portability (MNP), allowing users to switch providers without changing their phone numbers. Both MVNOs and their partner MNOs will be responsible for supporting this feature.

Financial obligations under the framework go beyond the initial license fee. MVNOs will need to pay an annual license fee of 0.5% of gross revenue, contribute 1.5% to the Universal Service Fund, and allocate 0.5% toward research and development. Late payments may result in penalties, including possible suspension of the license.

Additionally, the framework emphasizes data security and compliance. MVNOs will be required to store call records, internet usage data, and related information for at least one year and provide it to authorities when requested.

Overall, this initiative by the PTA signals a forward-looking approach to modernizing Pakistan’s telecom sector, encouraging new entrants while ensuring strong regulatory oversight.