PTA Allows Telcos With No Physical Networks to Launch in Pakistan

The Pakistan Telecommunication Authority (PTA) has introduced a comprehensive licensing framework for Mobile Virtual Network Operators (MVNOs), paving the way for new players to enter the country’s telecom sector.

The new license, issued under the Pakistan Telecommunication (Re-organization) Act, 1996, will allow MVNOs to offer mobile communication and next-generation services through commercial agreements with existing Mobile Network Operators (MNOs).

Under the new framework, MVNOs will be permitted to use their own brand names, develop customized services, and install customer care and billing solutions while utilizing the infrastructure and spectrum resources of parent MNOs.

However, the operators will not be allowed to establish their own radio access or core networks, nor will they receive direct spectrum assignments from the regulator.

The license carries an initial fee of $140,000 and will remain valid for 15 years. MVNOs will also be required to pay annual regulatory charges, including annual license fees, Universal Service Fund contributions, and Research and Development Fund contributions based on their annual gross revenues. Failure to meet financial obligations could result in suspension or termination of the license.

PTA has imposed strict operational and security obligations on license holders.

MVNOs will be required to provide access to emergency services, maintain customer call records for one year, comply with cybersecurity and national security requirements, and ensure lawful interception capabilities before commencing commercial operations. Operators must also activate SIM cards only after proper verification in line with regulatory directives.

The framework further establishes detailed quality-of-service standards, including targets for call completion, network availability, complaint resolution, and mobile data speeds for both 4G and 5G services. PTA said the measures are aimed at ensuring improved service quality, consumer protection, and enhanced competition in Pakistan’s telecommunications market.