PTA approves MVNO policy allowing more mobile service providers

ISLAMABAD: The Pakistan Telecommunication Authority (PTA) has approved a new Mobile Virtual Network Operators (MVNO) Policy Framework that will allow more mobile service providers to enter Pakistan’s telecom market.

Companies will be allowed to provide mobile services without building their own mobile networks under the new Mobile Virtual Network Operators.

Instead, these companies will use the already existing networks of current mobile operators while selling services under their own brands.

This means users could see new mobile service brands in the market, even though they rely on the same underlying networks.

The move is expected to increase competition, offer more choices to consumers, and introduce new and customized mobile packages under different brand names.

The Federal Cabinet approved the policy and formally issued by the PTA.

It clearly defines an MVNO as a mobile service provider that does not own radio towers, spectrum, or core network infrastructure. Instead, it operates through agreements with licensed Mobile Network Operators (MNOs).

For applying for an MVNO license, companies must incorporated in Pakistan and registered with the Securities and Exchange Commission of Pakistan (SECP).

Companies can ink agreements with one or more existing mobile operators to offer services in the country.

Packages, Strategies

On the other hand, they can design their own packages and marketing strategies, their infrastructure is limited to customer support and billing systems.

License 

The MVNO license will be valid for 15 years, provided all PTA rules are followed. Applicants must submit a detailed business and technical plan, along with a draft agreement and consent letter from the parent mobile operator.

Any changes to these agreements will require prior approval from the PTA.

Commencement Certificate

MVNOs will not be allowed to start services or collect payments until the authority issues a formal commencement certificate.

Mobile Numbers Through Parent Operators 

Under the framework, MVNOs will receive mobile numbers through their parent operators but will be fully responsible for service quality, billing, customer complaints, and dispute resolution. They must also comply with all national security requirements set by the PTA.

Services to MVNOs Can’t Be Stopped Without Prior Approval 

The policy further states that parent mobile operators cannot reduce or stop services to MVNOs without prior approval from the regulator.

License fee of US$140,000

The financial requirements include a one-time nationwide license fee of US$140,000. MVNOs will also pay an annual license fee equal to 0.5 percent of their gross revenue, along with contributions to the Universal Service Fund at 1.5 percent and the Research and Development Fund at 0.5 percent after deductions.

MVNO to be Terminated if not start services within year 

The policy sets strict timelines for operations. If an MVNO fails to launch services within one year of receiving its license, the license will be terminated.

Similarly, if an agreement with a parent mobile operator ends, the MVNO license will be suspended unless a new agreement is submitted within one year.