Hajra Naz
Government Faces Potential Revenue Loss
The delay in approving the Mobile Virtual Network Operators (MVNO) framework could lead to significant revenue losses for the government, particularly in the upcoming 5G spectrum auction.
Framework Stalled in Bureaucratic Process
For some months, the Ministry of Information Technology and Telecom (MoITT) has been holding up the MVNO framework. The Ministry of Law has not yet received it for review. Since more spectrum cannot be assigned to MVNOs without clearance, cellphone providers might be hesitant to buy it. This calls into question the 5G auction’s efficacy as well as the possibility of losing millions of dollars.
Revised MVNO Framework Still Awaits Approval
Following stakeholder engagements, the Pakistan Telecommunication Authority (PTA) finalized the MVNO framework in June 2024. The updated draft proposed:
- 15-year licenses for MVNOs
- A significant reduction in license fees from $5 million to $140,000 to attract investment
Despite these changes, delays in the approval process have stalled implementation.
MVNOs and Their Role in Expanding Connectivity
MVNOs operate by leasing network services from Mobile Network Operators (MNOs) rather than owning spectrum. The initiative was designed to:
- Expand mobile services in remote areas
- Increase market competition
- Boost digital connectivity
However, without regulatory approval, the initiative remains in limbo.
IT Ministry Awaits Federal Government’s Nod
Officials from the IT Ministry confirmed that the framework has been approved at the ministry level and will be sent to the federal government after legal vetting. The process involves:
- Approval by the Ministry of Law
- Submission to the Cabinet Division
- Further procedural clearances before the final adoption
Once approved and published in the Gazette, PTA will start receiving applications for MVNO licenses. However, further delays could push back the timeline even more.
5G Rollout and Auction at Stake
To make money from the sale of spectrum, the government intends to introduce 5G services by May or June. Delays in the MVNO framework, however, would deter telecom operators from purchasing more spectrum, which would impact the auction’s outcome and restrict the growth of digital connectivity.
Pakistan’s capacity to successfully deploy 5G may be hampered by additional delays, so regulatory intervention is essential to guarantee a seamless deployment.
