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Pakistan’s long-anticipated 5G spectrum auction is facing potential setbacks due to delays in establishing the Mobile Virtual Network Operators (MVNO) framework, according to sources. The prolonged approval process could result in a significant drop in expected revenue, raising concerns about the auction’s overall success.
For months now, the framework has remained in the MoITT, and the Ministry of Law has still not received it for oversight.
Without its permission, mobile operators won’t want to buy more spectrum because it can’t be given to MVNOs. This makes people worry about how well the 5G auction will work and the possible loss of millions of dollars in income.
After consulting with relevant parties, the Pakistan Telecommunication Authority (PTA) completed the MVNO framework in June 2024. The updated proposal aimed to entice investors by lowering the license fee from $5 million to $140,000 and proposing 15-year licenses for MVNOs.
MVNOs get their network services leased from MNOs since they do not possess their own spectrum. The program’s stated goal was to boost market competition and broaden access to mobile services, especially in remote areas. However, its execution has been delayed due to the lengthy approval procedure.
The framework has been authorized at the ministry level, according to IT ministry officials. After the law ministry evaluates it, it will be given to the federal government. It will go to the Cabinet Division for further review and possible further procedural approvals before it is finally adopted.
The sources indicate that the PTA will begin accepting applications once the federal government gives its approval and a gazette notice is published. The PTA will award MVNO licenses when the procedural and legal procedures are completed, which will add even more time to the process.
The suggested model allows MVNOs to run on MNO networks while keeping control of their own marketing, branding, and customer support. After getting approval from the PTA, they’ll have to sign commercial agreements with MNOs. Licenses will be issued by the regulatory authority once the requirements are completed. However, the procedure will not proceed until the framework is approved in its final form.
What This Means for Pakistan’s 5G Rollout?
The government is planning to introduce 5G services in May or June and hopes to earn money from selling spectrum. The overall performance of the auction could be impacted by the MVNO framework delay, which prevents telecom companies from purchasing extra spectrum. The success of the 5G deployment and the growth of digital connectivity programs could be hindered by additional delays.
