Pakistan Opens Doors to Telecoms Without Traditional Network Infrastructure

Pakistan’s telecom industry is entering a new phase, and this time the change is structural, not cosmetic. The Pakistan Telecommunication Authority (PTA) has approved a policy that allows new mobile service providers to enter the market without building physical network infrastructure. This decision marks a major shift in how mobile services will be offered and consumed across the country.

For years, the telecom market has been dominated by a few large players that own towers, spectrum, and core networks. While competition existed, it was limited by high entry barriers. The new Mobile Virtual Network Operators (MVNO) Policy Framework removes those barriers and opens the door for innovation, niche services, and customer-focused offerings.

Understanding the MVNO Policy Framework

An MVNO, or Mobile Virtual Network Operator, is a company that provides mobile services without owning radio towers, spectrum, or core network infrastructure. Instead, it purchases network capacity from existing Mobile Network Operators (MNOs) and resells services under its own brand.

Difference Between MVNOs and MNOs

• MNOs own and maintain physical telecom infrastructure
• MVNOs focus on branding, pricing, and customer experience
• MVNOs rely on agreements with licensed operators
• Lower capital investment compared to traditional operators

Globally, MVNOs have succeeded by targeting specific customer segments such as youth, businesses, tourists, and data-heavy users. Pakistan is now set to explore the same model.

Key Highlights of PTA’s MVNO Policy

The MVNO policy was approved by the Federal Cabinet and officially issued by the PTA, giving it strong legal and regulatory backing. This ensures clarity for investors, operators, and consumers alike.

Some key highlights include:

• Nationwide MVNO license validity of 15 years
• Clear definition of operational boundaries
• PTA approval required for agreement changes
• Formal commencement certificate mandatory before launch

This structured approach reduces uncertainty and protects all stakeholders involve.

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Who Can Apply for an MVNO License in Pakistan

Not everyone can jump into the MVNO business. The policy clearly defines eligibility criteria to maintain regulatory control and service quality.

Eligibility Requirements

• Company must be incorporated in Pakistan
• Mandatory registration with SECP
• Agreement with one or more licensed MNOs
• Submission of business and technical plans

Only locally registered companies can apply, ensuring that the economic benefits stay within the country.

How MVNOs Will Operate Without Networks

MVNOs will not install towers or acquire spectrum. Instead, they will operate by leasing network capacity from existing operators. This model allows faster market entry and lower operational costs.

Operational Limitations

• No ownership of radio access networks
• Infrastructure limited to billing and customer care
• Dependence on parent operator for network availability

Despite these limits, MVNOs have full freedom in designing packages, pricing strategies, and marketing campaigns.

Consumer Benefits of MVNO Entry

For consumers, this policy is all about choice and customization. MVNOs are expected to compete aggressively on pricing and service quality.

Key Consumer Advantages

• More mobile brands in the market
• Customized packages for specific needs
• Competitive pricing and promotions
• Improved customer support models

Instead of one-size-fits-all plans, users can expect offers tailored to their usage habits.

Impact on Existing Mobile Network Operators

This policy is not a threat to existing operators; in fact, it can be an opportunity. MNOs can generate additional revenue by leasing unused network capacity to MVNOs.

Benefits for MNOs

• New wholesale revenue streams
• Better utilization of existing infrastructure
• Reduced customer churn through partnerships

At the same time, competition will push operators to improve service quality and innovate faster. Pakistan Opens Doors to Telecoms Without Traditional Network Infrastructure

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Financial Requirements and Fees

The MVNO policy outlines clear financial obligations to ensure seriousness and sustainability.

Fee Structure

• One-time license fee: US$140,000
• Annual license fee: 0.5% of gross revenue
• Universal Service Fund: 1.5%
• R&D Fund contribution: 0.5%

These fees are balanced to encourage entry while safeguarding national telecom funds.

Operational Responsibilities of MVNOs

While MVNOs don’t own networks, they carry full responsibility for customer-facing operations.

Core Responsibilities

• Billing and payment collection
• Customer complaint resolution
• Service quality management
• Dispute handling

If service quality drops, the MVNO—not the parent operator—will be held accountable by the PTA.

Security and Regulatory Compliance

National security remains a top priority. MVNOs must comply with all lawful interception and data protection requirements set by the PTA.

Key obligations include:

• Compliance with national security directives
• Cooperation with lawful authorities
• Secure handling of user data

The PTA also restricts MNOs from discontinuing MVNO services without prior approval.

Service Launch Timelines and Penalties

The policy sets strict operational timelines to avoid license hoarding.

• MVNO must launch services within one year
• Failure to launch results in license termination
• Agreement termination suspends the license
• New agreement must be submitted within one year

This ensures only serious players remain in the market.

MVNO Numbers Allocation and Branding

MVNOs will receive mobile numbers through their parent operators but can operate under independent brand identities.

Branding Flexibility

• Independent brand names
• Unique marketing strategies
• Customized service positioning

This allows MVNOs to build strong brand recognition despite using shared infrastructure.

Challenges MVNOs May Face in Pakistan

While the policy is promising, challenges remain.

Potential Challenges

• Building trust as a new brand
• Dependence on parent operator performance
• Price-sensitive consumer base
• Regulatory compliance costs

Success will depend on innovation, transparency, and customer focus.

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MVNOs vs Traditional Operators

Future of Pakistan’s Telecom Industry

The MVNO policy aligns with Pakistan’s broader digital inclusion goals. By lowering entry barriers, it encourages innovation, supports niche markets, and improves overall service standards.

Over time, this model can:

• Expand mobile access in underserved areas
• Encourage digital entrepreneurship
• Strengthen competition and affordability

The telecom landscape is set to become more dynamic and user-centric.

Conclusion

Pakistan’s decision to allow telecom companies without traditional network infrastructure is a bold and forward-looking move. The MVNO policy framework not only increases competition but also places consumers at the center of service innovation. With clear rules, financial discipline, and regulatory oversight, this policy has the potential to reshape the telecom market, making it more flexible, inclusive, and future-ready. Pakistan Opens Doors to Telecoms Without Traditional Network Infrastructure

FAQs

1. What is an MVNO in Pakistan?
An MVNO is a mobile service provider that offers services without owning telecom infrastructure and operates through agreements with existing operators.

2. How long is the MVNO license valid?
The MVNO license is valid for 15 years, subject to compliance with PTA rules.

3. Can foreign companies apply for MVNO licenses?
Only companies incorporated in Pakistan and registered with SECP are eligible.

4. Will MVNOs offer cheaper packages?
MVNOs are expected to introduce competitive and customized packages, which may be more affordable.

5. What happens if an MVNO fails to launch services?
If services are not launched within one year, the license will be terminated.