The prolonged delay in approving Pakistan’s Mobile Virtual Network Operators (MVNO) framework could result in substantial revenue losses for the government, particularly in the anticipated 5G spectrum auction, industry insiders have warned.
Sources told ProPakistani that the framework has been stalled at the Ministry of Information Technology and Telecom (MoITT) for several months, awaiting review before it can be forwarded to the Ministry of Law for vetting. Without its approval, telecom operators may hesitate to invest in additional spectrum, as it cannot be allocated to MVNOs—potentially jeopardizing the success of the upcoming auction.
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In June 2024, the Pakistan Telecommunication Authority (PTA) finalized the MVNO framework after extensive consultations with stakeholders. The revised draft proposed 15-year licenses for MVNOs while significantly reducing the license fee from $5 million to $140,000 to encourage investment in the sector.
MVNOs, which do not own spectrum, lease network services from Mobile Network Operators (MNOs) to offer telecom services. This initiative aims to expand mobile connectivity, particularly in remote areas, while enhancing competition within the sector. However, bureaucratic delays have hindered its implementation, raising concerns about missed economic opportunities.
Approval Process Still Ongoing
Officials from the IT Ministry confirmed that the framework has been approved at the ministry level and will be sent to the federal government following the law ministry’s vetting. Afterward, it must pass through the Cabinet Division before final adoption.
Once approved, PTA will begin accepting applications from MVNOs. However, regulatory formalities and licensing processes could take additional time, further delaying the framework’s rollout.
Under the proposed regulations, MVNOs will operate on MNO networks but manage their own branding, marketing, and customer service. Commercial agreements between MVNOs and MNOs will require PTA approval before licenses are issued.
Impact on 5G Auction and Digital Growth
The government has announced plans to roll out 5G services by May or June 2025, with expectations of generating significant revenue through spectrum sales. However, the delay in finalizing the MVNO framework could discourage telecom operators from purchasing additional spectrum, potentially affecting the overall success of the auction.
Industry experts warn that any further delays could hinder the expansion of digital connectivity and slow Pakistan’s progress in the global telecom landscape. Swift action is needed to finalize the MVNO framework and ensure that the country maximizes its telecom sector’s revenue potential.
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