Key Points
- MVNOs to offer mobile services without owning spectrum
- Services delivered through agreements with existing telecom operators
- Aims to improve connectivity in low or no-signal areas
- Enables customised packages, branding, and customer ownership
- Nationwide licenses valid for 15 years under PTA framework
ISLAMABAD: Pakistan has accelerated Mobile Virtual Network Operator (MVNO) services under a new policy framework, positioning the model as a potential solution for users facing weak or no cellular signals, especially in remote and underserved areas.
Under the framework, an MVNO is defined as an operator that does not hold its own spectrum but provides mobile communication services by entering into commercial agreements with licensed Mobile Network Operators (MNOs).
These arrangements allow MVNOs to utilise existing network infrastructure to deliver voice and data services to their own subscribers.
For end users, the most immediate implication is improved ‘access to mobile’ connectivity in areas where traditional coverage is patchy or unreliable.
By leveraging multiple network partnerships and alternative routing mechanisms, MVNOs can extend service reach beyond the limitations of a single operator’s tower footprint.
The policy allows MVNOs to offer nationwide mobile and next-generation services, subject to licensing by the Pakistan Telecommunication Authority (PTA).
Companies seeking licenses must be registered with the Securities and Exchange Commission of Pakistan and submit detailed technical, financial, and business plans along with agreements with partner MNOs.
A key feature of the framework is flexibility. MVNOs are permitted to enter into agreements with one or multiple MNOs, enabling them to optimise coverage and service quality across different regions.
This multi-operator approach could be particularly relevant in geographically challenging areas such as mountainous regions or sparsely populated districts.
From a consumer perspective, MVNOs will operate under their own brand names and can design customised service offerings, pricing models, and customer engagement strategies.
They are also allowed to install systems for billing, customer care, and service delivery, giving them control over user experience despite relying on another operator’s network.
However, the framework places clear limitations on their operations. MVNOs cannot own or operate radio access or core network infrastructure, nor can they hold spectrum licenses.
They must depend entirely on their parent MNOs for network access, interconnectivity, and roaming arrangements.
In practical terms, this means that MVNOs are unlikely to replace traditional telecom operators but rather complement them by targeting niche segments or underserved markets.
Analysts say this could include rural connectivity solutions, enterprise communication networks, or specialised services for sectors such as banking, logistics, and public safety.
The framework also places strong emphasis on service quality and regulatory compliance. MVNOs will be responsible for meeting quality- of-service benchmarks.
They must ensure data privacy and comply with national security requirements. They are also required to establish 24/7 customer support systems and handle billing and service disputes independently.
To safeguard market stability, the PTA requires that commercial agreements between MVNOs and MNOs clearly define responsibilities related to service delivery, customer care, and revenue sharing.
These agreements cannot be altered without prior regulatory approval, ensuring transparency and accountability.
From a cost perspective, the entry barrier is relatively better structured. The initial license fee is set at $140,000, with additional annual charges based on a percentage of gross revenue.
MVNOs are also required to contribute to universal service and research funds, aligning them with broader sector development goals.
The potential impact on users without reliable signals will depend on how effectively MVNOs utilise these regulatory provisions.
In theory, by pooling infrastructure and offering targeted services, MVNOs could improve connectivity in areas where traditional network expansion has been slow or commercially unviable.
However, experts caution that performance will still be tied to the underlying MNO networks. If base infrastructure remains weak, MVNOs may only partially address connectivity gaps rather than fully eliminate them.
The policy marks a shift toward a more layered telecom ecosystem in Pakistan, where service provision is decoupled from infrastructure ownership.
If implemented effectively, it could enhance competition, encourage innovation, and gradually reduce the country’s digital divide.
