Permits issued for virtual mobile service provision

The Pakistan Telecommunications Authority notified on Wednesday the Policy Framework of Mobile Virtual Network Operators MVNO that will allow virtual operators to provide service all over the country without a spectrum license.

Under the policy framework approved by the federal cabinet, MVNOs will be permitted to provide cellular mobile communication and next-generation services nationwide by utilizing the infrastructure of other already operational telecom operators, commonly referred to as licensed MNOs.

The initial fee for a nationwide MVNO license has been set at $140,000, or its equivalent in Pakistani rupees, to be paid up front. The dollar rate will be calculated based on the interbank selling rate prevailing on the day preceding the payment date.

According to the framework, an MVNO is defined as an operator that does not hold any frequency spectrum assignment but provides mobile services to its own customers through commercial agreements with licensed MNOs, after obtaining a license from the PTA.

The policy enables MVNOs to offer nationwide mobile communication services, including next-generation services, subject to licensing conditions set by the regulator. MVNOs will be allowed to enter into commercial agreements with one or more MNOs, while MNOs may similarly partner with multiple MVNOs.

The framework allows MVNOs to operate under their own brand names, adopt independent marketing strategies, and offer customized services in addition to those provided by the host MNO. MVNOs may install their own customer care, billing, and service platforms while using numbering resources and spectrum assigned to the parent MNO.

However, the policy clearly states that MVNOs will not be eligible for any direct spectrum assignment, with spectrum ownership remaining exclusively with licensed MNOs.

The move is expected to increase competition, encourage service innovation, and improve consumer choice in Pakistan’s telecom market, while enabling existing operators to monetize excess network capacity through wholesale arrangements.