The much-anticipated 5G spectrum auction in Pakistan is facing significant uncertainty due to delays in approving the Mobile Virtual Network Operators (MVNO) framework. The framework, which has been pending with the Ministry of Information Technology and Telecom (MoITT) for several months, has yet to be sent to the Ministry of Law for vetting.
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Impact on 5G Spectrum Auction: The delay in approving the MVNO framework could result in substantial revenue losses for the government, particularly in the upcoming 5G spectrum auction. Without the framework’s approval, mobile operators may be reluctant to purchase additional spectrum, as it cannot be allocated to MVNOs. This raises concerns about the effectiveness of the 5G auction and the potential loss of millions of dollars in revenue.
MVNO Framework Details: In June 2024, the Pakistan Telecommunication Authority (PTA) finalized the MVNO framework after consultations with stakeholders. The revised draft proposed 15-year licenses for MVNOs and reduced the license fee from $5 million to $140,000 to encourage investment in the sector. MVNOs, which do not own spectrum, operate by leasing network services from Mobile Network Operators (MNOs). The initiative was designed to expand mobile services, particularly in remote areas, and increase market competition.
Government’s Role and Next Steps: Officials from the IT Ministry confirmed that the framework has been approved at the ministry level and will be sent to the federal government after vetting by the law ministry. Once vetted, it will move to the Cabinet Division, and further procedural approvals may be required before its final adoption. After approval from the federal government and issuance of a gazette notification, PTA will start receiving applications. The regulatory authority will issue licenses once all requirements are met, but without final approval of the framework, the process remains at a standstill.
Broader Implications: The delay in the MVNO framework may stop telecom operators from buying additional spectrum, affecting the overall success of the auction. Any further delays may impact the effectiveness of the 5G rollout and limit the expansion of digital connectivity initiatives. The government has announced plans to launch 5G services in May or June, with the expectation of generating revenue from spectrum sales.
Additional Information: The Pakistan Telecommunication Authority (PTA) has confirmed that the 5G spectrum auction will take place before June 2025, with a commercial rollout expected by late 2025 or early 2026. PTA Chairman Major General (Retired) Hafeez Ur Rehman emphasized that 2025 will be a game-changer for Pakistan’s telecom sector, with 5G paving the way for enhanced digital infrastructure and connectivity. The Ministry of Information Technology and Telecommunication has also initiated the formulation of a National Fiberization Plan to enhance the country’s digital highways and improve overall connectivity.
