Pakistan is finally on the verge of opening its telecom sector to a new era. The Pakistan Telecommunication Authority (PTA) has completed the long-awaited Mobile Virtual Network Operators (MVNOs) framework, which is now headed to the federal cabinet for final process of approval.
This framework will permit new telecom companies to provide services without owning physical infrastructure, and this is creating a huge shift in the telecom landscape.
What Are MVNOs and what is its importance?
MVNOs are called telecom service providers that do not build or maintain their own network infrastructure. Instead, they lease capacity from current Mobile Network Operators (MNOs) and emphasize on:
• Branding and marketing
• Customer support
• Product packaging and pricing
The model is meant to promote competition, innovation and brings affordable services to underserved areas—making telecom services more accessible across Pakistan.
Some of the major Highlights of the New Framework
After years of consultations and delays, PTA finalized the MVNO policy in June 2024, incorporating feedback from multiple stakeholders. Some important revisions include:
• License Fee Slashed: From $5 million to $140,000
• License Duration Extended: From 10 to 15 years
• Mandatory Agreements: MVNOs must sign commercial terms with MNOs, subject to PTA’s approval
These changes are designed to encourage new entrants and enhance market competitiveness.
A Long Road to Approval
The process has faced several delays:
• The revised draft was submitted to the Ministry of IT in February 2025
• Feedback from the Ministry of Law and Justice was incorporated in April 2025
• It’s now ready for cabinet presentation and approval
Once approved, PTA will start accepting MVNO applications, perform compliance checks, and issue licenses to eligible operators.
The Bigger Picture: Telecom Sector Challenges Remain
The MVNO development is unfolding against the backdrop of other telecom sector uncertainties, including:
• The delayed 5G rollout, initially promised by June 2025
• The pending Telenor-Ufone merger, awaiting clearance from the Competition Commission
What Happens Next?
The policy is going to be approved by the cabinet very soon. If the process is managed efficiently, new telcos could soon enter the market, potentially
improving service quality
affordability for consumers. However, the impact of this reform depends on execution, timely licensing, and how the government addresses broader telecom sector issues.
Conclusion: A Promising Step Forward
While the journey has been slow, the upcoming approval of the MVNO framework is a positive and transformative step. It opens the door for digital innovation, improved service delivery, and greater consumer choice—all critical components of a robust telecom ecosystem in Pakistan.