Pakistani consumers can expect more choices in mobile data packages following approval of a policy framework on Mobile Virtual Netwok Operator (MVNO) Services.
A Mobile Virtual Network Operator is basically a wireless provider which doesn’t own any network infrastructure in a country, so they lease capacity from a major Mobile Network Operator (MNO) to sell their services under their own brand name and competitive prices.
The Pakistan Telecommunications Authority, in a press statement on January 7, said that the decision has been taken to “promote competition, innovation, and enhanced consumer choice in the telecommunications sector”, adding that the policy was previously approved by the Federal Cabinet.
According to the statement, “the policy framework is designed to encourage innovative service models, improve quality of service, and expand affordable and diversified mobile offerings for consumers across Pakistan. It is expected to attract investment, create employment opportunities, and accelerate progress towards the national “Digital Pakistan” vision by making mobile services more accessible and inclusive.”
The licence will be issued for an initial period of 15 years, and the the initial fee for the nationwide licence has been set at $140,000.
The policy framework states that companies registered with Securities and Exchange Commission of Pakistan are eligible to apply for the MVNO licence. It allows virtual operators to make commercial agreements with single or multiple mobile operators, and similarly, one mobile operator can make a deal with single or multiple virtual operators.
Virtual operators are, however, forbidden by th policy for “assignment of any spectrum”, installing their “own radio access and core network elements”, or “establishing (their own) roaming and interconnect agreements”.
A separate clause also states that virtual operators “shall be responsible to fulfill the National Security requirements as prescribed” by PTA without mentioning in detail what such requirements entail.
The policy also instructs virtual operators that they cannot stop suspend their services immediately, and have to give customers at least three months notice with prior approval from PTA before suspension.
The Ministry of IT& Telecom also announced the policy framework on its social media sites. It said that the expect the following key outcomes from the framework:
