ISLAMABAD: Pakistan has taken a major step toward a more competitive digital future as Pakistan’s federal cabinet approved the MVNO framework ahead of the 5G auction, according to official developments reviewed during my research.
The approval clears a long-pending policy that is expected to reshape how mobile services are offered in the country and how the upcoming Fifth Generation spectrum auction is structured.
What the Cabinet Decision Means
Based on my analysis, the newly approved Mobile Virtual Network Operator framework is designed to make the telecom market more flexible and inclusive. It allows companies to provide mobile services without owning radio spectrum, relying instead on commercial agreements with existing mobile network operators.
The framework was approved through a cabinet circulation summary presented by the Ministry of Information Technology and Telecommunication, marking a policy-level green signal ahead of critical 5G planning.
Why the MVNO Framework Matters Before 5G
From a policy and market perspective, approving the MVNO framework before the 5G auction is a strategic move.
It helps regulators and policymakers:
- Better estimate real market demand for spectrum
- Encourage service-based competition, not just infrastructure-based
- Enable innovative and low-cost digital services
- Reduce entry barriers for new telecom players
In my research, this sequencing aligns with global best practices where MVNOs help maximize the economic value of next-generation networks.
Key Features of Pakistan’s MVNO Framework
The approved framework introduces several important provisions:
License Structure
- MVNO licenses will be issued for 15 years
- Licenses can be renewed after expiry
- Nationwide operations are allowed under a single license
Fee and Financial Model
- One-time upfront license fee set at 140,000 United States dollars, payable in Pakistani currency
- Annual regulatory contributions apply, including Universal Service Fund and research and development charges
- Fees are calculated on combined revenues with the host mobile network operator
Operational Flexibility
- MVNOs can operate under their own brand names
- Multiple business models are allowed, from simple resellers to full-service operators
- Agreements with host networks must be approved by the regulator
Regulatory Oversight and Compliance
The framework places strong emphasis on service quality and national security.
MVNOs will be required to:
- Maintain customer support systems and help lines
- Establish at least one customer care center in each active city
- Follow lawful interception and SIM management rules
- Ensure uninterrupted service standards
All licensing and operational oversight will remain with the Pakistan Telecommunication Authority.
Impact on Telecom Market and 5G Auction
In my view, this policy opens the door for smaller and specialized companies to enter Pakistan’s telecom sector without massive infrastructure costs.
Potential outcomes include:
- More competition in mobile services
- Better pricing and tailored packages for users
- Increased investor confidence before the 5G auction
- Smarter spectrum allocation decisions by the government
What Comes Next
Following the cabinet’s approval, a formal public briefing is expected from the federal information technology leadership to explain implementation timelines and licensing procedures.
As Pakistan moves closer to its 5G rollout, the MVNO framework is likely to play a key role in shaping a more dynamic, service-driven telecom ecosystem.
