Government Risks Revenue Loss Amid MVNO Framework Delays
Bureaucratic Delays Threaten 5G Spectrum Auction
The government faces potential revenue losses as delays in approving the Mobile Virtual Network Operators (MVNO) framework could impact the upcoming 5G spectrum auction. The Ministry of Information Technology and Telecom (MoITT) has yet to forward the framework to the Ministry of Law for review, stalling its progress. Without clearance, MVNOs cannot acquire spectrum, making telecom operators hesitant to invest—raising concerns about the effectiveness of the 5G auction and potential losses in the millions.
MVNO Framework Awaits Final Approval
The Pakistan Telecommunication Authority (PTA) finalized the revised MVNO framework in June 2024 after consulting stakeholders. Key updates include:
- 15-year MVNO licenses
- License fee reduction from $5 million to $140,000 to attract investors
Despite these changes, bureaucratic delays continue to hinder implementation.
MVNOs: Expanding Connectivity and Competition
MVNOs lease network access from Mobile Network Operators (MNOs) rather than owning spectrum, aiming to:
- Expand mobile services in underserved areas
- Boost market competition
- Enhance digital connectivity
However, without regulatory approval, these benefits remain unrealized.
Legal and Federal Approvals Still Pending
IT Ministry officials confirm that the framework has ministry-level approval and awaits legal review before being sent to the federal government. The process includes:
- Ministry of Law approval
- Submission to the Cabinet Division
- Final procedural clearances
Once published in the Gazette, PTA can begin issuing MVNO licenses. However, any further delays could push back the timeline even further.
5G Auction and Rollout at Risk
The government plans to roll out 5G services by mid-2025, relying on spectrum sales for revenue. However, continued MVNO framework delays may discourage telecom operators from purchasing additional spectrum, undermining the auction and slowing digital expansion. To ensure a smooth 5G deployment, swift regulatory intervention is crucial.