PTA Plans 15-Year Licenses for Small Telecom Companies

The Pakistan Telecommunication Authority (PTA) is proposing 15-year licenses for small telecom companies to operate as Mobile Virtual Network Operators (MVNOs). MVNOs don’t own any spectrum but use the networks of established Mobile Network Operators (MNOs) to provide mobile services. According to the PTA, this initiative aims to boost investment and improve mobile services in remote areas.

After gathering feedback from the industry and other stakeholders, PTA has prepared a revised draft of the MVNO framework and published it on its website. The draft is open for further comments for the next 14 days before it is finalized.

In response to industry feedback, PTA has proposed reducing the MVNO license fee from $5 million to $140,000. This significant decrease will encourage more investment in the MVNO sector, allowing small companies to enter the market and provide their branded services through revenue-sharing agreements with MNOs.

PTA Plans 15-Year Licenses for Small Telecom Companies

According to the draft, MVNOs can make commercial agreements with one or multiple MNOs. MVNOs can use their own brand names, marketing strategies, and customer care services. However, they can not install any radio or core network equipment. They can also offer customized services alongside those provided by their parent MNOs. PTA will not intervene in the commercial deals between MNOs and MVNOs but will issue licenses once all requirements are met. The PTA must approve the agreement between MNOs and MVNOs, and any changes require prior approval.

The draft framework highlights the quality of service as a key responsibility for MVNOs. They must ensure their customers receive high-quality services, as they will hold their own brand name and market their own SIM cards. MVNOs must also ensure uninterrupted services from their parent MNOs.

Financially, parent MNOs will pay all regulatory fees and contributions based on the combined revenues from both MNO and MVNO services. MVNOs will pay annual numbering charges through their parent MNOs.

The initial license term for MVNOs will be 15 years, with the possibility of renewal. However, if the agreement between an MVNO and an MNO terminates, the PTA will also cancel or suspend the MVNO’s license. The PTA’s initiative to offer 15-year licenses to MVNOs and significantly reduce the licensing fee is a strategic move to enhance mobile services and promote investment in Pakistan’s telecommunication sector.

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