The delay in approving the Mobile Virtual Network Operators (MVNO) framework could lead to significant revenue losses for the government, especially in the upcoming 5G spectrum auction, sources told ProPakistani.
Pending Approval and Its Consequences
The MVNO framework has been pending with the Ministry of Information Technology and Telecom (MoITT) for several months and has yet to be sent to the Ministry of Law for vetting. Without its approval, mobile operators may hesitate to purchase additional spectrum, as it cannot be allocated to MVNOs, which could impact the effectiveness of the 5G auction and result in potential revenue losses worth millions of dollars.
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PTA’s Proposed Framework
In June 2024, the Pakistan Telecommunication Authority (PTA) finalized the MVNO framework after consulting stakeholders. The revised draft proposed:
✅ 15-year licenses for MVNOs.
✅ Reduction in license fee from $5 million to $140,000 to encourage investment.
MVNOs do not own spectrum but lease network services from Mobile Network Operators (MNOs). The initiative was intended to expand mobile services in remote areas and boost market competition. However, the delayed approval has stalled implementation.
Approval Process & Next Steps
Officials from the IT Ministry confirmed that the framework has been approved at the ministerial level and will be sent to the federal government after vetting by the law ministry. The process involves:
➡️ Approval by Law Ministry
➡️ Submission to Cabinet Division
➡️ Issuance of Gazette Notification
➡️ PTA receiving applications and issuing licenses after legal formalities
Impact on 5G Auction & Digital Expansion
The government plans to launch 5G services in May or June 2025, expecting to generate revenue from spectrum sales. However, delays in the MVNO framework may discourage telecom operators from purchasing additional spectrum, affecting the overall success of the auction. Any further delays could hinder the 5G rollout and slow down the expansion of digital connectivity initiatives.
