Islamabad: Pakistan’s much-anticipated 5G spectrum auction could face delays, as the prolonged approval process for the Mobile Virtual Network Operators (MVNO) framework risks discouraging telecom operators from investing in additional spectrum, industry insiders have warned.

According to sources who spoke to ProPakistani, the MVNO framework has been stalled at the Ministry of Information Technology and Telecom (MoITT) for several months. The framework is currently awaiting review before it can be sent to the Ministry of Law for vetting. Without its approval, telecom operators may hesitate to acquire new spectrum since it cannot be allocated to MVNOs—potentially jeopardizing the upcoming 5G auction.

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Regulatory Delays Threaten Revenue Potential

The Pakistan Telecommunication Authority (PTA) had finalized the MVNO framework in June 2024 after extensive consultations with stakeholders. The revised draft proposed granting 15-year licenses to MVNOs while significantly reducing the license fee from $5 million to $140,000 to attract investment in the sector.

MVNOs, which do not own spectrum but lease network services from Mobile Network Operators (MNOs), are expected to enhance mobile connectivity—especially in remote areas—and promote competition in the telecom sector. However, bureaucratic delays have slowed the approval process, raising concerns about missed economic opportunities.

Approval Process Still Ongoing

Officials from the IT Ministry have confirmed that the framework has been approved at the ministry level and will be forwarded to the federal government after clearance from the Law Ministry. It must then pass through the Cabinet Division before being formally adopted.

Following approval, PTA will begin accepting applications from MVNOs. However, regulatory formalities and licensing procedures could add further delays to the framework’s rollout.

Under the proposed regulations, MVNOs will operate on MNO networks but manage their own branding, marketing, and customer service. Additionally, commercial agreements between MVNOs and MNOs will require PTA approval before licenses are issued.

Potential Impact on 5G Rollout

The Pakistani government has announced plans to launch 5G services by May or June 2025, with expectations of generating substantial revenue from spectrum sales. However, delays in finalizing the MVNO framework could deter telecom operators from purchasing additional spectrum, thereby affecting the auction’s success.

Industry experts warn that any further hold-ups could slow Pakistan’s digital transformation and impact its position in the global telecom landscape. Urging swift action, they emphasize that the government must expedite the framework’s approval to unlock the full revenue potential of the telecom sector and ensure a smooth transition to 5G.

What’s Next?

With the federal government yet to complete the approval process, industry stakeholders remain hopeful that policymakers will accelerate the framework’s clearance. A delay in the 5G auction could set Pakistan back in its digital ambitions, making prompt action on the MVNO framework a crucial priority for the government.