The Pakistan Telecommunication Authority (PTA) has issued a new policy framework for Mobile Virtual Network Operator (MVNO) services after receiving approval from the federal cabinet, paving the way for new telecom service providers to enter the market without owning network infrastructure.

The MVNO framework was approved by the federal cabinet, allowing companies to offer mobile services by using the infrastructure of already licensed mobile network operators.

Under the policy, MVNOs will be permitted to use existing mobile networks only after signing interconnect agreements with licensed operators. All such agreements will remain subject to approval by the PTA.

Licensing requirements and conditions

According to the framework, MVNOs must obtain a formal certificate from the PTA before launching any commercial services. The license duration has been set at 15 years.

However, if a license holder fails to start operations within one year, the license will be automatically canceled, the authority said.

To qualify for an MVNO license, the applicant company must be registered with the Securities and Exchange Commission of Pakistan (SECP).

The PTA has set the initial MVNO license fee at $140,000. MVNOs will not be allocated spectrum and will not be allowed to install radio access networks or core network infrastructure.

Despite operating on shared networks, MVNOs will be fully responsible for maintaining quality of service and complying with national security requirements, the framework states.