Pakistan has taken a major step toward opening its telecom market to new players as the Ministry of Information Technology has forwarded the Mobile Virtual Network Operator (MVNO) licensing framework to the federal cabinet for final approval. 

Officials said the move is seen as a key part of preparations for the country’s 5G launch planned for the first quarter of next year. The framework had been pending with the ministry for almost one year. PTA originally sent the revised MVNO plan to the Ministry of IT in November last year, after which consultations with international MVNOs were held.

The Ministry of Law and Justice has also completed its legal vetting, clearing the framework for approval.

A major feature of the new policy is the sharp reduction in the MVNO license fee from USD 5 million to USD 140,000, aimed at attracting investment and encouraging new companies to enter the telecom market. 

The license tenure has been extended to 15 years to give investors long-term certainty. MVNOs will be allowed to acquire network capacity from existing mobile operators, but all commercial agreements will require PTA approval.

Under the framework, MVNOs will operate by leasing capacity from mobile operators while running independent branding, marketing, and customer service operations. 

Once the cabinet gives its approval, PTA will start accepting applications and issuing licenses after all legal and regulatory requirements are completed.

Officials noted that the introduction of MVNOs is expected to bring more competition and diversified services to the market. They also believe the move will help telecom operators prepare for 5G, as companies acquiring new spectrum will have the option to lease additional capacity to MVNOs.

This, they said, will strengthen investment flows and expand service options ahead of Pakistan’s transition to next-generation mobile technology.