PTA revises MVNO framework in a bid to increase investment

29 Oct 2009

The Pakistan Telecommunication Authority (PTA) has revised and reissued its framework for mobile virtual network operator (MVNO) services in a bid to boost investment in the country’s telecoms sector. In the revised framework, the regulator has made it compulsory for prospective MVNOs to first sign an agreement with at least one mobile network operator (MNO) before applying to the PTA for permission to offer services. In addition, the updated legislation will allow MVNOs to ink deals with more than one MNO for the provision of services. The PTA has also determined the cost of an MVNO licence as USD5 million, or the equivalent in rupees, with concessions valid for a ten-year period; licences will be extendable for ten-year terms subject to further approval by the regulator.

The new MVNO framework also says that provision of Quality of Service (QoS) shall be the sole responsibility of licensed MVNO, which must ensure that users receive good QoS as per benchmarks set by the PTA. MVNOs will also be required to establish at least one customer care centre and 24/7 helpline in each city where it offers services.

According to comments by PTA chairman Dr Yaseen, reported by Geo News, the regulator hopes to boost investment to USD500 million by next year, and helping to turn around declines in investment that have stemmed from the global economic crisis.