Pakistan’s telecom sector is set for a structural shift as the Pakistan Telecommunication Authority (PTA) moves to introduce a formal licensing framework for Mobile Virtual Network Operators (MVNOs). The draft outlines a clear regulatory path for new entrants, along with an initial license fee of USD 140,000, aiming to open the market to more competition and innovation.
Under this proposed framework, MVNOs will be allowed to offer mobile communication services across Pakistan. However, services will not extend to Azad Jammu & Kashmir (AJ&K) and Gilgit-Baltistan (GB). The draft sets detailed rules covering service delivery, commercial partnerships, compliance standards, and financial responsibilities.
MVNOs will operate by forming agreements with one or more mobile network operators (MNOs). These agreements will require PTA approval before becoming active. As a result, MVNOs will not need to invest in core telecom infrastructure or spectrum. Instead, they will depend on the existing networks of licensed MNOs to deliver services.
At the same time, the PTA has defined a list of essential services that MVNOs must provide nationwide. These include emergency services access, operator assistance, and both national and international long-distance services. These services will be delivered through arrangements with MNOs and Long Distance & International (LDI) operators. Moreover, the authority may require additional services in the future.
The framework also allows MVNOs to build their own brand identity. They can design customized service plans and manage their own customer care and billing systems. However, strict limits apply. MVNOs are not allowed to build their own radio access networks or core systems or hold spectrum. They also cannot enter into independent roaming or interconnection agreements.
The license will remain valid for 15 years from the date it becomes effective. Renewal will be possible after review. MVNOs must apply at least 30 months before expiry. PTA will then assess compliance history and regulatory performance before making a decision. In case of negative findings, the licensee will be given a chance to respond.
Another important aspect of the draft focuses on fair competition in the market. If an MVNO gains Significant Market Power (SMP), it will face regulatory measures from the PTA. These steps are intended to prevent unfair practices and maintain a balanced telecom ecosystem.
In addition, the framework supports mobile number portability (MNP). This allows users to switch operators without changing their numbers. MVNOs and their partner MNOs will share responsibility for technical and operational support. This requirement aligns with PTA regulations and ensures a smooth user experience.
On the financial side, MVNOs must pay more than just the initial USD 140,000 license fee. They will also contribute an Annual License Fee (ALF) of 0.5% of gross revenue after deductions. Furthermore, they must pay a 1.5% Universal Service Fund (USF) contribution and a 0.5% Research and Development (R&D) fee. Numbering charges will also apply through their parent MNOs.
All payments must be made within 120 days after the financial year ends. If payments are delayed, a 2% monthly surcharge will be imposed. Continued failure to comply can lead to penalties. These may include suspension or even termination of the license.
The draft also places emphasis on local growth and innovation. MVNOs are encouraged to support local manufacturing and technology transfer. They are also expected to contribute to research and development efforts in line with government policies.
Operational limits are clearly defined as well. MVNOs cannot operate in AJ&K and GB. They also cannot establish direct international connections. All connectivity, both national and international, must go through licensed operators and existing MNO agreements.
Data security and recordkeeping are also key focuses. MVNOs must store detailed call records for at least one year. This includes caller and receiver details, date, time, duration, IMEI, and location data. Internet session logs and IP address records must also be retained for the same period. These records must be provided to the PTA whenever required.
