Islamabad, Feb 24: The prolonged delay in approving the Mobile Virtual Network Operators (MVNO) framework is emerging as a potential roadblock to Pakistan’s upcoming 5G spectrum auction, raising concerns over significant revenue losses for the government. Despite being finalized by the Pakistan Telecommunication Authority (PTA) in June 2024 after extensive stakeholder consultations, the framework has been stalled at the Ministry of Information Technology and Telecom (MoITT) for several months, awaiting vetting by the Ministry of Law.
Without the framework’s approval, mobile operators may be reluctant to acquire additional spectrum, as they would be unable to allocate it to MVNOs. This hesitation threatens to undermine the success of the 5G auction, which is expected to generate millions of dollars in revenue. The situation could also delay the broader expansion of digital services, particularly in underserved and remote areas where MVNOs are expected to play a crucial role.
PTA’s proposed MVNO framework includes 15-year licenses and a reduced license fee of $140,000 down from the initial $5 million to encourage investment in the sector. MVNOs, which do not own their own spectrum, operate by leasing network services from Mobile Network Operators (MNOs) while managing their own branding, marketing, and customer services. The model is designed to foster market competition and improve service delivery across the country. However, bureaucratic delays have kept the framework from moving forward, stalling potential benefits.
Officials from the IT Ministry confirm that the framework has received ministerial approval and will soon be sent to the federal government after legal vetting. Once cleared, it will require further procedural approvals, including a Cabinet Division review, before final implementation. Following the issuance of a gazette notification, PTA will begin accepting MVNO license applications a process that could take additional time before commercial operations commence.
The government has announced plans to launch 5G services by mid-2025, banking on revenue from spectrum sales to support the rollout. However, the ongoing delays in MVNO approvals risk discouraging telecom operators from investing in additional spectrum, potentially impacting the auction’s financial outcome. If unresolved, this bottleneck could hinder the effectiveness of Pakistan’s 5G deployment and slow down digital connectivity initiatives aimed at expanding nationwide internet access.
