PTA Finalizes MVNO Framework: A New Era for Pakistan’s Telecom Industry

The Pakistan Telecommunication Authority (PTA) has completed a significant step toward opening up the mobile market by finalizing the draft framework for Mobile Virtual Network Operator (MVNO). This new framework will allow smaller companies to enter the telecommunications market under their own brand names and offer customized mobile services without the need to establish their own physical network infrastructure. The PTA has concluded consultations with industry stakeholders and will soon present the draft to the federal government for final approval.

PTA Finalizes MVNO Framework: A New Era for Pakistan’s Telecom Industry

The new MVNO framework proposes a 15-year license for companies interested in offering mobile services. This long-term license provides a stable business environment, making it easier for companies to plan and grow their operations. In a significant move to encourage more businesses to enter the telecommunications space, the PTA has reduced the MVNO license fee from a hefty $5 million to a much more accessible $140,000. This reduction is expected to attract more investment in the sector and increase competition, which could lead to better services and more affordable pricing for consumers.

Operational Structure and Agreements

According to the draft, MVNOs will have the flexibility to establish commercial agreements with one or more Mobile Network Operators (MNOs). Through these partnerships, MVNOs will provide services to customers by leveraging the existing infrastructure of established MNOs. This approach will enable MVNOs to operate without the need to install any physical network equipment, such as radio towers or core network systems. Instead, they will focus on service quality, branding, and customer experience, providing more personalized and innovative solutions to their users.

However, the responsibility for ensuring high-quality service remains a crucial requirement for MVNOs. They are expected to offer reliable connectivity and maintain a high standard of service, as specified by the PTA, ensuring that customers have a seamless and uninterrupted mobile experience.

Financial and Regulatory Obligations

The draft framework also outlines the financial arrangements between MVNOs and their parent MNOs. While MVNOs will operate independently under their own brand names, the parent MNOs will handle all regulatory fees and contributions based on the combined revenues of both parties. Additionally, MVNOs will be responsible for paying annual numbering charges through their parent MNOs.

The initial 15-year license term provides MVNOs with the opportunity for license renewal, ensuring that companies that successfully grow their business and provide value to the market can continue operating in the long term.

See Also: PTA Drafts 2024 Accounting Separation Rules for Telecom Operators

Industry Feedback and Finalization

The PTA has developed this draft framework after receiving input from various industry stakeholders. PTA published the initial draft in June. the PTA invited feedback from the industry to make sure the framework was comprehensive and aligned with market needs. After carefully considering the feedback, the PTA finalized the framework and published it on its website for public access.

This new MVNO framework marks a major development in Pakistan’s telecommunications sector. By lowering entry barriers and encouraging more players to join the market, the PTA aims to foster competition, drive innovation, and enhance the overall quality of mobile services available to consumers across the country. The draft now awaits final approval from the federal government.