MVNO Framework Finally Approved After Year-Long Wait
The federal cabinet has approved the long-awaited Mobile Virtual Network Operator (MVNO) framework, paving the way for new mobile service providers that can operate without owning a physical network. The decision is being described as a major policy milestone for Pakistan’s telecom sector, coming just months before the planned launch of 5G services.
According to official sources, the Ministry of Information Technology had forwarded the MVNO framework to the cabinet after it remained pending within the ministry for nearly a year. The Pakistan Telecommunication Authority (PTA) first submitted the draft to the ministry in November 2024. Since then, extensive consultations were held with global MVNO companies, while the Ministry of Law and Justice completed its legal vetting before final approval was granted.
Licence Fee Cut from $50 Million to $140,000
One of the most significant changes in the approved framework is the dramatic reduction in the MVNO licence fee. The original proposal set the fee at around 50 million dollars, a level widely viewed as too high for new and niche operators. Under the revised framework, the fee has been cut to just 140,000 dollars to make entry far more affordable for investors.
The MVNO licence will now be valid for 15 years, giving operators a longer planning horizon and greater certainty for investment decisions. By lowering upfront costs and offering long-term licences, the government hopes to attract a broader range of players, including international brands, fintech-led operators and specialised virtual networks targeting specific customer groups.
How MVNOs Will Work in Pakistan’s Market
Mobile Virtual Network Operators do not build their own towers or radio networks. Instead, they lease capacity from existing Mobile Network Operators (MNOs) and then sell services to customers under their own brand. Under the new framework, MVNOs in Pakistan will be required to obtain network access from licensed telecom operators through commercial agreements.
The framework allows MVNOs to manage their own branding, marketing and customer services, including billing and support. However, all commercial agreements between MVNOs and host operators will remain subject to PTA approval to ensure fairness, transparency and compliance with regulatory requirements. This structure is designed to increase choice for consumers while keeping core network operations under the watch of established MNOs and the regulator.
More Competition and Wider Service Reach Expected
Officials say the primary objective of the MVNO framework is to expand the reach of mobile services and inject more competition into the telecom market. Smaller, agile operators can focus on underserved segments such as youth, low-income users, rural communities or specialised business customers, often by offering tailored bundles, digital services or customer support in local languages.
For consumers, more competition could mean better packages, innovative value-added services and more responsive customer care. For existing operators, partnering with MVNOs offers a chance to monetise spare network capacity and reach new customer segments without building separate retail channels. Regulators, meanwhile, expect that a more diverse operator base will drive service quality improvements across the board.
PTA to Start Accepting Licence Applications
Following the federal cabinet’s approval, PTA will now begin accepting applications for MVNO licences. Licences will be issued once applicants meet all legal and regulatory requirements, including financial fitness, technical capability and suitable partnership arrangements with host networks.
The regulator is expected to release detailed guidelines on application procedures, evaluation criteria and timelines so that prospective MVNOs can prepare their business plans. Industry watchers believe that early movers could gain an advantage by launching services ahead of or alongside the rollout of 5G, when consumer interest in new packages and devices is likely to be high.
Linked to 5G Auction and Future Investment
The approval of the MVNO framework comes as the government prepares to hold a 5G spectrum auction, with a tentative target of mid-February for the sale of new frequencies. Officials say that the arrival of MVNOs is expected to attract additional investment into the sector, as major operators acquire more spectrum for 5G and then lease capacity to virtual operators.
For Pakistan’s telecom industry, the combination of a more open MVNO regime and upcoming 5G services could reshape the competitive landscape over the next few years. If implemented effectively, the new framework could lead to more choice, better prices and stronger digital inclusion, bringing advanced mobile services within reach of more users across the country.
