The federal cabinet has approved Pakistan’s long-awaited Mobile Virtual Network Operator (MVNO) framework, a policy move officials say will help the government conduct a more efficient and targeted 5G spectrum auction while opening the telecom sector to new players.
According to official sources that told TechJuice exclusively, the approval was granted through circulation after the Ministry of Information Technology and Telecommunication submitted the summary to the cabinet. Federal Minister for IT and Telecommunication Shaza Fatima Khawaja is expected to brief the media later today on the details and implications of the new framework.
An MVNO is a telecom service provider that does not own radio spectrum or physical network infrastructure. Instead, MVNOs enter into commercial agreements with existing Mobile Network Operators to offer mobile and next-generation services under their own brand. Under the newly approved framework, MVNOs will be allowed to offer nationwide services in Pakistan in line with clause 9.11.1 of the Telecommunications Policy 2015 and the associated policy guidelines governing MNOs and MVNOs.
Under the approved policy, MVNO licenses will be issued for a period of 15 years, with a nationwide upfront license fee of 140,000 dollars, payable in Pakistani rupees. While MVNOs will rely on the networks of existing operators, they will be free to operate their own brands and design customized service offerings for customers.
The framework also defines ongoing regulatory obligations. MVNOs will be required to pay annual contributions, including Universal Service Fund and Research and Development fees, calculated on the basis of combined revenues with their host Mobile Network Operators. Inter-operator costs may be adjusted, but any charges billed back to the host operator will not be allowed as deductible expenses.
If an MVNO’s agreement with its host operator expires or is terminated and no new agreement is signed, the license will be suspended until a fresh contract is submitted to the regulator. The policy supports a range of operating models, from basic resellers to full MVNOs with their own core network infrastructure, with all agreements subject to approval by the PTA.
The Pakistan Telecommunication Authority finalized the draft policy last year and forwarded it to the ministry for approval. The initiative is aimed at expanding investment in the telecom sector and creating space for smaller or niche operators that may not have the capital to acquire spectrum directly.