PTA Confirms 15-Year Licensing Framework for Mobile Virtual Network Operator

The Pakistan Telecommunication Authority (PTA), following approval from the Federal Cabinet, has formally notified the Policy Framework for Mobile Virtual Network Operator (MVNO) Services in Pakistan, allowing new virtual mobile operators to enter the telecom market without owning spectrum or network infrastructure.

Under the framework, MVNOs will be permitted to offer nationwide mobile communication and next-generation mobile services through commercial agreements with licensed Mobile Network Operators (MNOs). An MVNO is defined as an operator that does not hold frequency spectrum and instead provides services by utilizing the capacity and facilities of an MNO’s network under a regulator-approved agreement.

The framework allows MVNOs to operate under their own brand names, offer customized services, manage their own billing and customer care systems, and market their own SIM cards, while relying on the parent MNO’s spectrum, roaming, and interconnection arrangements. MVNOs will not be permitted to install their own radio access or core network infrastructure, nor will they be assigned any spectrum.

Licensing and Eligibility

Licenses will be issued for 15 years and may be renewed. Failure to launch services within one year can lead to termination, while MVNOs whose agreements with MNOs end must secure a new arrangement within one year to avoid suspension.

Applicants must be incorporated in Pakistan, registered with SECP and submit technical, business, and financial documentation along with a draft agreement with an MNO.

Fees and Regulatory Obligations

The initial license fee is US$140,000. Operators will also pay annual regulatory dues of 0.5 % of gross revenue, in addition to mandatory Universal Service Fund and Research and Development contributions.

MVNOs will be responsible for service quality, consumer protection, data privacy, billing, and national security compliance, and must operate 24/7 customer support while meeting PTA requirements on device registration, number portability, and lawful interception.

Market Impact

PTA said the policy is aimed at strengthening competition, expanding consumer choice, encouraging innovation, and supporting the Digital Pakistan agenda through increased investment, job creation, and wider access to mobile services.

The new framework replaces the 2006 policy guidelines and authorizes PTA to update relevant regulations and license formats accordingly.