PTA invites bids for mobile virtual network licences

ISLAMABAD: The Pakistan Telecommunication Authority (PTA) on Wednesday formally opened applications for Mobile Virtual Network Operator (MVNO) licences, setting an upfront licence fee of $140,000 for a nationwide licence, following the federal cabinet’s approval of the policy framework aimed at introducing new players into Pakistan’s telecom market.

The regulator invited interested entities to apply for MVNO licences, saying the initiative is intended to promote competition, innovation and enhanced consumer choice in the telecommunications sector.

The licences will allow companies to offer mobile services under their own brands through commercial arrangements with existing licensed Mobile Network Operators (MNOs), without acquiring spectrum or building network infrastructure.

The move marks a significant development in Pakistan’s telecom industry, where mobile services have traditionally been dominated by a limited number of infrastructure-owning operators.

Under the framework, MVNO licences will be granted for a period of 15 years, subject to compliance with PTA regulations and licence conditions. Detailed eligibility requirements, licensing obligations, and application procedures have been incorporated in the MVNO licence template issued by the regulator.

Industry stakeholders believe the framework could attract fintech firms, internet service providers, cable operators, digital service companies and technology firms seeking to enter the mobile market with lower capital requirements than conventional telecom operators.

According to the policy framework, MVNOs will be allowed to market services under their own brands, develop customised packages, operate independent billing systems and manage customer care functions.

However, they will be required to lease network capacity from licensed cellular mobile operators, as they will not be assigned radio spectrum.

The framework permits a single MVNO to enter into agreements with one or more MNOs, while host cellular operators may also accommodate multiple MVNOs on their networks.

Besides the initial licence fee, MVNOs will be required to pay annual licence fees and make mandatory contributions to the Universal Service Fund (USF) and Research and Development (R&D) Fund in accordance with applicable revenue-sharing mechanisms.

PTA has also incorporated a comprehensive consumer protection regime. MVNOs will be required to maintain dedicated customer support systems, ensure data privacy, meet quality-of-service standards and comply with national security and lawful interception requirements.

To protect consumers and ensure service continuity, host network operators will not be allowed to suspend or degrade services provided to MVNOs without prior PTA approval. Similarly, MVNOs will be prohibited from discontinuing services without advance notice and regulatory consent.

The framework also includes mobile number portability provisions, allowing subscribers to retain their mobile numbers when switching service providers, a measure expected to facilitate competition and customer mobility.

Telecom experts say the entry of MVNOs could help address underserved market segments through specialised offerings targeted at youth, enterprises, overseas Pakistanis, digital content users and other niche consumer groups.

Globally, MVNOs have played a key role in expanding competition and lowering service costs by enabling companies to focus on branding, customer experience and value-added services while leasing network infrastructure from established operators.