The prolonged delay in approving the Mobile Virtual Network Operators (MVNO) framework could lead to significant revenue losses for the government, particularly in the upcoming 5G spectrum auction, reports have revealed.
The framework, which has been pending with the Ministry of Information Technology and Telecom (MoITT) for several months, has yet to be sent to the Ministry of Law for vetting.
Without the framework’s approval, mobile operators are unlikely to purchase additional spectrum, as it cannot be allocated to MVNOs. This raises concerns about the success of the 5G auction and the potential loss of millions of dollars in revenue.
The Pakistan Telecommunication Authority (PTA) finalized the MVNO framework in June 2024 after extensive consultations with stakeholders. The revised draft proposed 15-year licenses for MVNOs and significantly reduced the license fee from $5 million to $140,000 to attract investment in the sector. MVNOs, which do not own spectrum, operate by leasing network services from Mobile Network Operators (MNOs). The initiative aims to expand mobile services in underserved areas and boost market competition. However, the delay in approval has stalled its implementation.
Officials from the IT Ministry confirmed that the framework has been approved at the ministry level and will be sent to the federal government after vetting by the law ministry. Once vetted, it will move to the Cabinet Division for further procedural approvals before its final adoption. Following the issuance of a gazette notification, the PTA will begin accepting applications, but the entire process, including licensing, is expected to take considerable time.
Under the proposed framework, MVNOs will operate on MNO networks while managing their own branding, marketing, and customer service. They will be required to enter into commercial agreements with MNOs, which must be approved by the PTA. However, without the framework’s final approval, the licensing process remains at a standstill.
The government has announced plans to launch 5G services by May or June, with expectations of generating significant revenue from spectrum sales. However, the delay in the MVNO framework could discourage telecom operators from purchasing additional spectrum, potentially undermining the success of the auction.
