Pakistan’s long-awaited framework for Mobile Virtual Network Operators (MVNOs) has been submitted for final approval to the federal cabinet, following feedback from the Ministry of Law and Justice and the Ministry of Information Technology and Telecommunication. This marks a crucial step toward operationalizing MVNO services, which have faced repeated delays.
The framework, finalized by the Pakistan Telecommunication Authority (PTA) in June 2024, includes key revisions such as a reduced license fee of $140,000, down from $5 million, and an extended license term of 15 years. These changes are aimed at attracting new players to the telecommunications sector and increasing competition.
MVNOs operate by leasing network services from Mobile Network Operators (MNOs) while managing their own branding, marketing, and customer service. They are required to sign commercial agreements with MNOs, subject to PTA approval. Although the MVNO framework aims to expand mobile services, the approval process has significantly delayed its implementation.
The final version of the framework is now set to be presented to the federal cabinet, which is expected to approve it. Once approved, the PTA will begin accepting MVNO applications, triggering the licensing process and subsequent compliance checks. This move will pave the way for new entrants to launch services in Pakistan’s telecom market.
The delay in the MVNO framework coincides with other unresolved telecom sector issues, including the unclear timeline for the rollout of 5G services and the pending decision on the Telenor-Ufone merger. Industry analysts caution that the success of the MVNO framework will depend on how quickly remaining procedural hurdles are addressed and how broader reforms are managed in the telecom sector.
