Regulation

Pakistan’s regulator rules on MVNOs and spectrum auctions

Pakistan’s regulator rules on MVNOs and spectrum auctions

The week just ended seems to have been a busy one for regulator Pakistan Telecommunications Authority (PTA), with important rulings related to MVNOs and 5G reported by the local press.

In the middle of the week the PTA notified what it calls the Mobile Virtual Network Operators (MVNO) Policy Framework, allowing virtual operators to offer nationwide mobile services without owning spectrum. This appears to be a first for the country.

On payment of a fee equivalent to US$140,000, PTA-licensed MVNOs will be able to provide mobile communication and next-generation services across the country by using the infrastructure of an existing telecom operator (or operators) with which they have an agreement.

Like MNOs, MVNOs will be required to pay Universal Service Fund (USF) and research and development contributions, and to comply with PTA’s quality of service standards and security guidelines.

In the same week the PTA announced that it has issued an Information Memorandum (IM) for the auction of spectrum for Next Generation Mobile Services (NGMS)/5G in Pakistan. The spectrum auction will be held on 26 February.

Following the acquisition of Telenor Pakistan by PTCL, one (but not, it appears, all) of PTCL, Ufone or Telenor will be allowed to participate in this auction process along with the other two big companies, Zong and Jazz. It's not clear whether other companies can, or will, participate.

The PTA has set roll-out and coverage obligations in phases. 2026-2028 will see coverage of key urban centres and high-demand locations such as federal and provincial capitals. Coverage gaps will also need to be addressed. These requirements also appear to include 4G/LTE site rollout obligations as well as 5G coverage.

It’s not until phase 4 of rollout (2032-2035) that comprehensive nationwide coverage is seen as expected, though again this may refer to 4G rather than 5G, which by then is expected to be extended to small cities.

As the government has reportedly relaxed certain financial obligations for telcos under the policy framework, the quality of service (QoS) standards have been enhanced. Minimum downlink speeds in the 2026-28 period rise for 4G from the current 4 Mbps to 20 Mbps. The minimum downlink speed has to be 50 Mbps for 5G.

By 2030-2035 the minimum downlink speed is to be 50 Mbps for 4G and 100 Mbps for 5G.



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