The Pakistan Telecommunication Authority (PTA) has recently announced a significant reduction in the license fee for Mobile Virtual Network Operators (MVNOs), along with a streamlined licensing process. This decision is expected to bring about positive changes, facilitating easier entry for new players into the market and the provision of diverse services to consumers.
In a forward-thinking move, the PTA has introduced a revised framework that empowers the market to determine MVNO license fees. To gather input on appropriate fees, the regulator has invited feedback from the general public and industry stakeholders. Additionally, the PTA is seeking suggestions to streamline the MVNO licensing process.
Public input is also being sought on crucial aspects such as the duration of MVNO licenses. The proposal to issue licenses for 5 to 10 years or align them with existing licenses of Mobile Network Operators (MNOs) demonstrates a commitment to flexibility in regulatory measures.
READ MORE: Pakistan Seeks Extension of $2 Billion Loan from China
The PTA is actively engaging the public on topics like the extent to which MVNOs should be allowed to set up their own infrastructure or business models. Discussions also include considerations on restrictions related to agreements with MNOs to address concerns about potential monopolies and foster fair competition within the industry.
Recognizing the need for a simplified and transparent licensing process, the PTA is seeking public input on procedural aspects of obtaining an MVNO license. This includes considerations for whether a direct application or a joint application with an MNO should be allowed for the license processing.
This regulatory shift comes after a decade-long period of stagnation in MVNO license applications due to a previous hefty fee of $5 million, which deterred potential operators. The revised framework aims to rectify this issue, creating a more favorable environment for MVNO operators. Ultimately, it paves the way for a vibrant and competitive MVNO market in Pakistan.
MVNOs play a crucial role in enhancing consumer choice and fostering innovation by providing services without the need to own spectrum or network infrastructure. With this new framework, MVNOs will have the opportunity to purchase wholesale voice and data services from MNOs at discounted rates, enabling them to tailor their offerings to meet the unique needs of the Pakistani market.
