MVNO Framework Delay Raises Concerns in Telecom Market

The long-awaited MVNO framework delay has created uncertainty in Pakistan’s telecom market, as the policy—aimed at inviting new investments and enabling small telecom players—awaits approval from the Ministry of Information Technology and Telecommunication.

Drafted by the Pakistan Telecommunication Authority (PTA), the MVNO framework delay is hindering the rollout of a system designed to empower small telecom companies to provide mobile services under their brand. The framework outlines four operational models—Reseller, Service Provider, Enhanced Service Provider, and Full MVNO—each with varying levels of service control and infrastructure access.

The PTA proposes 15-year licenses with a one-time fee of $140,000 (or equivalent in PKR), alongside annual regulatory contributions based on combined gross revenue from MNO and MVNO services. Any termination of the MNO-MVNO agreement without a replacement contract will result in license suspension.

To ensure compliance, both parties must submit technical and business plans, along with a formal agreement that defines the MVNO’s operational limits. Any change to the agreement must receive the PTA’s prior approval.

Quality, Security, and Regulatory Compliance

The framework places full responsibility for the quality of service, customer care, and billing on the MVNO. Operators must establish 24/7 helplines and customer care centers in each operational city, while also addressing user disputes directly.

MVNOs are also required to comply with national security protocols, including Lawful Interception (LI), SIM activation, and data retention as mandated by PTA. The agreement with the MNO must clearly outline how these responsibilities will be shared and fulfilled.

Both MVNOs and MNOs are barred from unilaterally disrupting services without the PTAs’ written approval. MVNOs must provide three months’ notice and obtain prior clearance before discontinuing any service.

As industry players await final approval from the Ministry, telecom stakeholders emphasize the need for swift policy execution to unlock investment opportunities and improve market competitiveness.