New PTA Policy Will Let New Telcos Launch Services in Pakistan Without a Physical Network

The long-pending framework for Mobile Virtual Network Operators (MVNOs) is now being submitted to the federal cabinet for final approval, following vetting by the Ministry of Law and Justice and subsequent feedback incorporation by the Ministry of Information Technology and Telecommunication. Ministry officials confirmed to ProPakistani that the final version has been prepared and will be presented to the cabinet, marking a crucial step in a process that has seen repeated delays. The Pakistan Telecommunication Authority (PTA) had finalized the MVNO framework in June 2024 after consultations with stakeholders. A key revision in the draft included slashing the license fee from $5 million to $140,000 and extending the license term to 15 years, an attempt to attract new players to the telecom sector. The revised draft was shared with the IT Ministry in February 2025 and later sent to the Law Division, which provided its feedback in April. These inputs were incorporated before submission to the cabinet. MVNOs operate by leasing network services from Mobile Network Operators (MNOs) while managing their own branding, marketing, and customer service. They are required to sign commercial agreements with MNOs, subject to PTA approval. Although the framework aims to expand mobile services and enhance market competition, the prolonged approval cycle has kept its operationalization at a standstill. The framework will now be presented before the federal cabinet, which is expected to approve. This decision will pave the way for PTA to begin accepting MVNO applications, following which the licensing process and compliance checks will begin. Regulatory officials expect that once the legal formalities are completed, licenses will be issued and new entrants will be able to launch their services in the local market. The delay in the MVNO framework also intersects with other unresolved telecom sector developments. While the federal government had announced the launch of 5G services by June 2025, the timeline remains unclear due to the pending Competition Commission decision on the Telenor-Ufone merger. Industry analysts suggest that although the MVNO framework is finally moving forward, its impact will depend on how efficiently remaining procedural hurdles are addressed and how broader sector reforms are managed.