Cabinet Approves MVNO Framework Ahead of 5G Spectrum Auction to Boost Competition and Enable New Service Models

PTA Unveils Finalized Auction Mechanism for Pakistan's Landmark 5G Spectrum Sale

The federal cabinet has approved the long-awaited Mobile Virtual Network Operator (MVNO) framework, a major policy step aimed at strengthening Pakistan’s telecom sector ahead of the upcoming 5G spectrum auction. The move is expected to enhance competition, attract new service-focused players, and bring greater clarity to spectrum demand as the country prepares for next-generation mobile services.

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Under the approved framework, MVNOs will be allowed to offer nationwide mobile and digital services without owning spectrum or network infrastructure. Instead, they will operate through commercial agreements with existing Mobile Network Operators, enabling them to launch services under their own brands and design customised packages for consumers and businesses. The policy aligns with the national telecommunications policy and existing guidelines, formalising a structure that supports innovation while maintaining regulatory oversight.

The timing of the approval is considered critical, as it provides regulators and industry players with a clearer view of future market dynamics ahead of the 5G auction. By separating infrastructure ownership from service delivery, the framework is expected to encourage more efficient spectrum utilisation and enable targeted participation by companies focusing on niche segments such as enterprise solutions, digital-only offerings, and specialised connectivity services.

Industry stakeholders believe the MVNO regime can lower barriers to entry, encourage innovation, and improve consumer choice through more diverse and competitive service offerings. Clear licensing terms, including long-term validity and defined regulatory obligations, are also expected to improve investor confidence.

With the MVNO framework now in place, focus is shifting to final preparations for the 5G spectrum auction, seen as a key milestone for accelerating digital connectivity, supporting economic growth, and advancing Pakistan’s broader digital transformation agenda.