5G spectrum auction: cabinet approves MVNO framework

ISLAMABAD: The federal cabinet has approved the long-awaited Mobile Virtual Network Operator framework, which would help the government to shape a more efficient and targeted 5G spectrum auction.

Official sources told Business Recorder that the approval was granted through the circulation of the summary, submitted by the Ministry of Information Technology and Telecommunication.

Federal Minister for Information Technology and Telecommunication Shaza Fatima Khawaja is expected to hold a media briefing regarding the new framework on Friday.

MVNO is an operator that does not own any spectrum; instead, MVNOs have commercial arrangements with Mobile Network Operators (MNOs) for the provision of Mobile Communication Services and Next Generation Mobile Services to their own customers.

This framework allows MNVO to offer nationwide services in Pakistan in the light of clause 9.11.1 of Telecommunications Policy 2015, read with ‘Policy Guidelines on Mobile Network Operators and Mobile Virtual Network Operators’.

The MVNO framework aims to guide spectrum needs and support better decision-making during the 5G auction.

The Pakistan Telecommunication Authority (PTA) completed the draft last year and sent it to the ministry for approval. The plan focuses on expanding investment and giving smaller players a chance to enter the telecom market.

The framework outlines a 15-year MVNO license and sets a nationwide upfront fee of $140,000, payable in Pakistani rupees. MVNOs will use the networks of existing operators but can run their own brands and offer customised services.

Companies will also pay annual regulatory contributions, including USF and R&D fees, based on combined revenue with their parent MNOs. Inter-operator costs may be deducted, but any charges billed back to the MNO cannot be claimed as expenses.

The license remains valid for 15 years and can be renewed. If an MVNO ends its contract with its host operator and fails to sign a new one, the license will be suspended until a fresh agreement is filed with the PTA.

The framework supports multiple MVNO models, from basic reseller setups to full MVNOs with their own core network. All agreements between MNOs and MVNOs will require PTA approval.

MVNOs must maintain service quality, operate a help line, and run at least one customer care centre in every active city. They must also meet national security rules, including lawful interception and SIM management protocols.

The MVNO policy could bring new players into Pakistan’s telecom sector and add momentum to the upcoming 5G auction.