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IT Ministry Delays Approval of MVNO Framework Ahead of Spectrum Auction

  • The Ministry of Information Technology and Telecommunication has delayed the approval of Mobile Virtual Network Operator (MVNO) framework, which was supposed to come out before the spectrum auction.
  • Pakistan Telecommunication Authority (PTA) submitted the final draft of the MVNO framework to the ministry for approval, aiming to facilitate new investments and growth in the telecom sector.
  • The MVNO framework proposes 15-year licenses for small companies to operate under their brand names and offer customized services, with an initial license fee of US $140,000 for a nationwide MVNO license.
  • MVNOs do not own spectrum but have commercial agreements with Mobile Network Operators (MNOs) to provide mobile communication services and next-generation mobile services to their customers.
  • Different MVNO models include Reseller, Service Provider, Enhanced Service Provider, and Full MVNO, each with specific rights and limitations in branding, marketing, and network equipment installation.
  • MVNOs and MNOs need to submit technical and business plans, a draft commercial agreement, and fulfill other requirements to obtain an MVNO license approved by the Authority.
  • MVNOs are responsible for ensuring quality of service, national security requirements, customer care, and compliance with regulations including PTA's directives on Lawful Interception and activation/de-activation of SIMs.
  • Once MVNO services commence, the MNO must provide uninterrupted services, and both parties require prior approval from PTA for any service interruptions or customer-related actions.
  • MVNOs must establish customer care centers, adhere to standard contracts of service, resolve billing disputes, and implement necessary safeguards to comply with regulatory requirements such as PTA's DIRBS and device tracking.
  • The delay in approving the MVNO framework ahead of the spectrum auction poses challenges for potential MVNO operators and the telecom sector's expansion in Pakistan.

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