Federal Cabinet Approves New Telcos Services Without a Physical Network

The federal cabinet has approved the Mobile Virtual Network Operators (MVNO) framework, marking a major development for investment in Pakistan’s telecom sector ahead of the planned 5G launch.

Sources told ProPakistani that the approval clears the way for the issuance of licenses to smaller mobile operators, a move expected to expand competition and service outreach across the country.

The Ministry of IT had forwarded the MVNO framework to the federal cabinet for approval after it remained pending at the Ministry for nearly a year. The Pakistan Telecommunication Authority (PTA) had initially submitted the framework to the Ministry of IT in November 2024. Officials said extensive consultations were held with global MVNOs to finalize the framework, while the Ministry of Law and Justice completed its legal vetting.

Under the approved framework, the MVNO license fee has been significantly reduced from $50 million to $140,000 to facilitate investors. The license validity period has been set at 15 years. MVNOs will be required to obtain network access from existing telecom operators and may operate by leasing licenses from mobile network operators.

The framework allows MVNOs to manage their own branding and customer services, while all commercial agreements will remain subject to PTA approval. Authorities said the primary objective of the framework is to enhance the reach of mobile services and increase competition in the telecom market.

Following federal government approval, the PTA will begin accepting applications for MVNO licenses and will issue licenses after completion of legal requirements. The government has set a target to conduct the 5G spectrum auction by mid-February.

Officials said the approval of MVNOs is expected to attract further investment in the telecom sector, enabling major operators to acquire additional spectrum for 5G and lease it to MVNOs.