The Pakistan Telecommunication Authority (PTA) has taken a significant step by finalizing its draft framework for Mobile Virtual Network Operators (MVNOs), signaling a new era for telecom innovation in Pakistan. This move is set to open doors for smaller companies to join the telecom market and offer tailored services to consumers.
Key Highlights of the MVNO Framework:
- Extended Licensing Duration:
- MVNOs will be granted 15-year licenses, enabling them to build and establish their brand identities over a substantial period.
- Reduced License Fee:
- In a bid to foster competition and attract investment, the PTA has slashed the MVNO license fee from $5 million to just $140,000. This reduction aims to lower the entry barrier for new players.
- Operational Guidelines:
- MVNOs will be able to enter into commercial agreements with one or multiple Mobile Network Operators (MNOs) and offer services based on revenue-sharing models. However, they will not be permitted to install or manage radio or core network equipment themselves.
- Quality Assurance:
- Ensuring high-quality service and continuous connectivity will be a primary responsibility for MVNOs, reflecting the PTA’s commitment to maintaining service standards.
- Financial Arrangements:
- The framework outlines that MNOs will cover all regulatory fees and contributions based on their combined revenues, while MVNOs will handle annual numbering charges through their associated MNOs.
- Feedback and Approval Process:
- After incorporating stakeholder feedback, the PTA has finalized the draft and will soon submit it to the federal government for approval. The draft was initially published in June for public consultation before this finalization.
The new framework marks a pivotal development in Pakistan’s telecom sector, promising enhanced service diversity and increased market competition. With the PTA’s strategic move, the telecom landscape is set to become more dynamic and consumer-focused.
