Small businesses are to be granted 15-year licenses by the Pakistan Telecommunication Authority (PTA) to function as Mobile Virtual Network Operators (MVNOs).MVNOs use the networks of well-established Mobile Network Operators (MNOs) to offer mobile services; they do not own any spectrum. The PTA states that the goal of this program is to increase investment and enhance mobile services in rural areas.
After receiving input from the industry and other stakeholders, PTA revised the MVNO framework draft and posted it on its website. To finalize, the draft is available for additional feedback for the following fourteen days.
PTA has suggested lowering the MVNO licensing fee from $5 million to $140,000 in response to comments from the industry. By enabling small businesses to enter the market and offer their branded services through revenue-sharing agreements with MNOs, this notable decline is meant to stimulate additional investment in the MVNO sector.
The draft states that the MVNOs may enter into business partnerships with one or more MNOs and vice versa. MVNOs are not permitted to install any radio or core network equipment, but they are permitted to utilize their own brand identities, marketing plans, and customer support services.
In addition to the services offered by their parent MNOs, MVNOs may also provide customized services. PTA will grant licenses if all conditions are satisfied, but it won’t get involved in business negotiations between MNOs and MVNOs. The PTA must approve the agreement between MNOs and MVNOs, and any modifications need prior permission.
The draft framework states that one of MVNOs’ main responsibilities is providing high-quality service. Since they will promote their own SIM cards and maintain their own brand identity, they must make sure their clients receive top-notch services. The continuous provision of services by parent MNOs is another need for MVNOs.
Financially, parent MNOs will use the combined income from MNO and MVNO services to cover all regulatory costs and obligations. Annual numbering fees will be paid by MVNOs to their parent MNOs.
MVNOs will have a 15-year initial licensing term with the option to renew. On the other hand, the license of the MVNO will also be revoked or suspended in the event that the MNO and MVNO part ways.
