The federal cabinet has approved the Mobile Virtual Network Operator (MVNO) framework, a significant step towards enhancing competition in Pakistan’s telecom market and facilitating a more targeted 5G spectrum auction. The approval, granted via circulation of a summary by the Ministry of Information Technology and Telecommunication, aligns with clause 9.11.1 of the Telecommunications Policy 2015.
Key Features and Implications for 5G Rollout
MVNOs, which do not own spectrum but lease network capacity from existing Mobile Network Operators (MNOs), can now offer nationwide mobile and next-generation services under their own brands. The framework sets a 15-year renewable license with an upfront fee of $140,000 (payable in PKR). Annual contributions to the Universal Service Fund (USF) and R&D will be based on combined revenues with host MNOs, while inter-operator costs are deductible.
The Pakistan Telecommunication Authority (PTA) drafted the policy last year, emphasizing service quality obligations, including helplines, customer care centres in active cities, and compliance with national security protocols like lawful interception. All MNO-MVNO agreements require PTA approval, and licenses may be suspended if an MVNO fails to maintain a host agreement.
This development is expected to attract smaller players, expand investment, and provide clearer insights into spectrum demand for the upcoming 5G auction. Federal Minister Shaza Fatima Khawaja is scheduled to brief the media on the framework details on January 3, 2026.
By enabling diverse service models—from basic resellers to full MVNOs with core networks—the policy aims to inject innovation and customized offerings into a sector dominated by major operators. As Pakistan prepares for its largest-ever spectrum auction, potentially including bands conducive to 5G, the MVNO approval adds momentum to digital transformation efforts.