4 min read
For decades, entering the telecommunications industry in Pakistan felt like scaling an “Mount Everest” peak. Launching a mobile network required billions in capital, a sprawling network of thousands of mobile towers, and a coveted spectrum license that often exceeded the GDP of smaller nations. The physical infrastructure- the steel towers, fiber optics, and radio access networks (RAN) – was not just expensive; it was a near-insurmountable barrier guarded by heavy regulation and fully entrenched players.
But in January 2026, everything changed. The Federal Cabinet approved the Mobile Virtual Network Operator (MVNO) Policy Framework, which the Pakistan Telecommunication Authority (PTA) formally notified shortly after. This transformative shift effectively “software-defined” the telecom sector. MVNOs can now provide nationwide mobile services without owning any physical infrastructure- no spectrum, no towers, no core network headaches. It’s a seismic change: telecom is no longer about building towers; it’s about building relationships and brands.
At its core, mobile virtual network operator (MVNO) is a telecom operator without the towers. Imagine wanting to launch your own premium clothing brand or boutique line in Pakistan. Instead of investing crores to build factories, buy sewing machines, set up dyeing units, and construct large shopping malls or standalone stores, you lease prime retail space inside an existing mega-mall like Centaurus or Packages Mall, or partner with a major garment manufacturer like Gul Ahmed or Nishat for production capacity. You bring your own designs, unique fabrics, branding, marketing campaigns, and in-store experience – but you don’t worry about the heavy machinery, supply-chain logistics, or real-estate ownership.
In the telco world, the “machinery and mall space” is the Radio Access Network owned by the Big Three Mobile Network Operators (MNOs): Jazz, Zong, and Ufone (including Telenor). These incumbents control the spectrum and infrastructure. The MVNO framework incentivizes them to lease excess capacity, airwaves that would otherwise sit idle- to virtual operators at wholesale rates.
Why would the MNOs agree? Simple economics. No network runs at 100% capacity all the time. In urban areas, peak-hour congestion is real, but vast rural stretches and off-peak hours leave significant idle resources. Selling this “empty air” generates pure incremental revenue with almost no added cost. For MVNOs, the entry barrier has plummeted: the nationwide license fee is a modest $140,000 (payable upfront in Pakistani rupees), a fraction of the billions required for traditional MNOs. The license lasts 15 years, renewable subject to compliance, and MVNOs can focus entirely on innovation – tailored plans, superior customer service, niche offerings – rather than engineering or infrastructure maintenance.
This isn’t just about cost reduction; it’s about unleashing competition and creativity. MVNOs operate under their own brand identities, handle billing, customer care, marketing, and value-added services. They must meet PTA regulations, including device registration, quality-of-service standards, and establishing customer care centers in active cities, but the heavy lifting of network upkeep falls to the host MNOs. The result? A more dynamic market where new players – potentially banks, retailers, FinTech’s, e-commerce platforms, universities, or even popular sports teams and entertainment brands – can offer mobile services bundled with their core products.
The real insight is the rise of embedded connectivity. In the near future, your mobile service won’t necessarily come from a traditional telco. It could come embedded in your banking app (imagine HBL or Meezan offering seamless mobile plans), your grocery loyalty program (Metro or Imtiaz bundling data with shopping), your favorite sports team’s fan portal, or even ride-hailing and delivery apps. The underlying technology becomes invisible; the customer relationship and brand trust become the true product. Global examples show this works: in the UK, Tesco Mobile thrives by leveraging retail loyalty; in the US, Mint Mobile and Google Fi succeed through simplicity and smart bundling.
In Pakistan, with over 190 million mobile subscribers and a young, digitally native population, the opportunity is massive. MVNOs could target underserved niches – affordable student data packs, SME bundles with cloud services, or hyper-local offerings in rural areas. They can drive competitive pricing, better support, and faster rollout of next-gen features like 5G, without the capital burden of network deployment.
Challenges remain, of course. MNOs and MVNOs must negotiate fair wholesale terms to prevent anti-competitive practices, and the PTA will enforce quality standards rigorously. Economic conditions may influence rollout speed, but the framework’s emphasis on commercial flexibility and consumer protection sets a strong foundation.
Ultimately, this reform brings Pakistan’s telecom sector in line with global best practices. It democratizes access, spurs innovation, and boosts affordability. The towers still stand tall, but the real giants now are the invisible ones: the MVNOs that can dominate the market not through steel and spectrum, but through sharp branding, customer obsession, and seamless connectivity. In 2026, Pakistan’s telecom game has been rewritten- no tower required
