The Pakistan Telecommunication Authority (PTA) has announced a significant reduction in the Mobile Virtual Network Operator (MVNO) license fee, coupled with a streamlined licensing process.
This decision is poised to unleash a wave of positive changes, making it easier for new players to enter the market and offer diverse services to consumers.
In a forward-looking move, PTA has introduced a revised framework that empowers the market to determine Mobile Virtual Network Operator (MVNO) license fees. The PTA has invited input from the general public and industry stakeholders to propose appropriate MVNO license fees. Moreover, the regulator sought suggestions for streamlining the MVNO licensing process.
Moreover, the PTA is seeking public input on crucial aspects such as the duration of the MVNO license. The proposal to either issue licenses for 5 to 10 years or align them with the existing licenses of Mobile Network Operators (MNOs) demonstrates a commitment to flexibility and adaptability in regulatory measures.
The regulator has also opened the floor for discussions on the extent to which MVNOs should be permitted to set up their own infrastructure or business models. By seeking input on restrictions related to agreements with MNOs, the PTA is addressing concerns of potential monopolies and fostering fair competition within the industry.
Recognizing the need for a simplified and transparent licensing process, the PTA is actively engaging with the public on the procedural aspects of obtaining an MVNO license. Whether through a direct application or a joint application with an MNO be allowed to process for the license.
This move comes after a decade-long period of stagnation in MVNO license applications due to a previously hefty fee of $5 million, which deterred potential operators. The revised framework aims to rectify this issue and create a more favorable environment for MVNO operators, ultimately paving the way for a vibrant and competitive MVNO market in Pakistan.
The MVNOs play a crucial role in enhancing consumer choice and fostering innovation by providing services without the need for owning spectrum or network infrastructure. With this new framework, MVNOs will be able to purchase wholesale voice and data services from MNOs at discounted rates, enabling them to tailor their offerings to meet the unique needs of the Pakistani market.
