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REGULATIONS, 2012

MOBILE VIRTUAL NETWORK OPERATION REGULATIONS, 2012

[Gazette of Pakistan, Extraordinary, Part-II, 1st March, 2012]

S. R. O. 220(I)/2012, dated 26.1.2012.—In exercise of powers conferred under clause (o) of sub-Section 2 of Section 5 of the Pakistan Telecommunication (Reorganization) Act, 1996, the Pakistan Telecommunication Authority is pleased to make the following regulations, namely:–

PART-I 

PRELIMINARY

1.  Short title and Commencement.—(1) These Regulations shall be called the `Mobile Virtual Network Operation Regulations, 2012’.

(2) They shall come into force from the date of gazette notification.

2.       Definitions.—(1) In these Regulations unless there is anything repugnant in the subject or context —

(a)     "Act" means the Pakistan Telecommunication (Re-organization) Act, 1996;

(b)     "Commercial Agreement" means the terms and conditions on which an MNO and MVNO mutually agree for the purpose of these regulations;

(c)     "Framework" means the framework issued by the Authority for MVNO services in Pakistan;

(d)     "License" means a license issued by the Authority to a 'Mobile Virtual Network Operator in accordance with these regulations:

(e)     "Mobile Virtual Network Operator (MVNO)" means an operator holding a license granted by the Authority to provide cellular mobile services by entering into a commercial agreement with a Mobile Network Operator (MNO) and does not own spectrum;

(f)      "Mobile Network Operator (MNO)" means a cellular mobile service licensee of the Authority;

(g)     "Regulations” means the regulations issued by the Authority from time to time;

(h)     "Rules" means the rules issued by the Federal Government under Section 57 of the Act; and

(i)      "SIM" means the subscriber identity module to be provided as a connection for cellular mobile services by the Licensee.

(2)     The words and expressions used but not defined in these regulations shall have the same meanings as assigned to them in the Act, Rules and Regulations.

PART-II

PROCEDURE FOR APPROVAL OF COMMERCIAL AGREEMENT AND GRANT OF LICENSE

3.       Procedure to be followed by Mobile Network Operator.—(1) An MNO shall submit to the Authority, a draft of the proposed Commercial Agreement between the MNO and proposed MVNO, containing inter alia, the detailed provisions regarding the following aspects:–

(a)     Quality of service;

(b)     Number Portability support by MVNO;

(c)     Roaming arrangements;

(d)     Customer care arrangements;

(e)     Dispute resolution mechanism; and

(f)      National Security arrangements.

(2)     Upon satisfactory evaluation of the Commercial Agreement, the Authority may approve the agreement which shall be intimated to the MNO.

(3)     If the approval of the proposed Commercial Agreement is declined for reasons of defect, the MNO may apply afresh after removing the said deficiency.

(4)     The proposed MVNO applicant may enter into commercial agreements with more than one MNO.

4.       Criteria for the eligibility of applicants for a MVNO Class License.—(1) All companies registered with Securities and Exchange Commission of Pakistan (SECP), possessing approved commercial agreement by the Authority under sub-regulation (2) of Regulation 3, shall be eligible to apply for an MVNO Class License. The License application shall include documents as specified in Annex-A:

Provided that an application for a license as an MVNO operator will only be considered if submitted within thirty (30) days of the grant of approval of the proposed commercial agreement by the Authority under sub-regulation (2) of Regulation 3.

(2)  The Authority shall consider the application for a License taking into account the following factors, namely:–

(a)     Technical and Business Plan of the proposed MVNO;

(b)     Technical competence, experience of applicant's key members of staff;

(c)     Financial viability of the proposed MVNO; and

(d)     Registration of the proposed MVNO with the Securities and Exchange Commission of Pakistan.

5.       Fees.—(1) Initial license fee for an MVNO Class license shall be US $ 5 million:

Provided that an MVNO Licensee shall pay all regulatory fees and contributions in the same way as applicable on an MNO in accordance with the Act, Rules, Regulations and license conditions.

(2) The fee shall be paid through a demand draft or pay order issued in favor of the Authority.

6.       Grant of License.—Upon satisfactory evaluation of the application by the Authority, an MVNO license shall be granted within thirty (30) working days of receiving of the application in the prescribed form complete in all respect.

7.       Duration.—Subject to the Act, Rules and Regulations made there under, a License issued by the Authority shall be valid for an initial period of ten (10) years, subject to the mutual agreement between the parties:

Provided that the license term may be extended for a further period of ten (10) years by the Authority, upon expiry of each term, subject to mutual agreement between the Licensee and the MNO concerned:

Provided further that upon expiry of the mutual agreement, expiry or termination of the parent MNO(s) license, the License shall automatically stand terminated.

PART-III

MISCELLANEOUS PROVISIONS

8.       General Conditions.—(1) The Licensee shall get its customer agreement form and contents of the standard contract of service document approved by the Authority prior to the commencement of its services.

(2)     The Licensee shall issue SIM(s) with its own brand name.

(3)     The Licensee may with approval of the Authority offer value added services independently or by bundling them with basic mobile telephony services.

(4)     Quality of service shall be the responsibility of the Licensee.

(5)     Licensee may enter into roaming agreements with other operators on mutually agreed terms.

(6)     The number allocation procedure for the Licensee(s) shall be as prescribed in Annex-B to these Regulations.

(7)     The Licensee shall establish easy to use and efficient compliant handling mechanism for effective resolution consumer complaints.

9.       Commencement of Operations.—(1) The Licensee shall be obliged to commence licensed services within one year from the date of grant of License.

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