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<PT:A

CONSTJLTATION

PAPE,R

ON

Review of Mobile Virtual Network


Op era;tcrr(MVN O) Frarnework

Pakistan Telecornmunication Authority


Headquarter F'5 / l', Islamabad
www.Pta.gov.Pr

CONTENT
t.
2,
3.
4.
4.1
4.2
4.3
4.4
4.5
4.6
4;l
4.8
4.9
4.10
4.11
5.
6.
7.
8.

Introduction
World Practiceon MVNO
Scopeof MVNO
Key Issues
Number Allocation
Branding
Billing
Fraud and Security
National Security
USF and R&D Fund Contribution
Paymentof Fees
Interconnect& Roaming
Quality of ServiceObligations
Customer Care
Service Interruption / Suspension/ Termination
Comments & Contact Point
Draft MVNO Framework in Pakistan
Draft MVNO ClassLicense
Application Materials

a
J
J

4
5
5
5
5
6
6
6
6
6
6
7
7
Annex -A
Annex-B
Annex-C

Introduction
Mobile Virtual Network Operator (MVNO) is an operator that does not own spectrumbut
have business arrangementswith conventional Mobile Network Operators (MNOs), who buy
minutesof use (MoU) from the MNOs for saleto its own customers.

The MVNO business started in year 1999 and now there are over 100 around the Glob.
Since limited spectrum is available for MNOs, there can only be a small number of operators
(MNOs) in each regiorVcountry.However, anyone else wanting to enter the market may purchase
capacityfrom MNO for reselling and becomean MVNO.

The Authority, keeping in view clause6.12 of cellular mobile policy 2004, issuedMVNO
Framework on March 20,2006 for implementation be mobile operators.The MVNO Framework
was preparedin consultationwith all cellular mobile operatorsand the Ministry of Information
Technology. The M\rNO Framework was framed such that it does not disturb the market that was
highly competitive and where the operatorswere lacking network capacity.Now, keeping in view
the changedscenarioand clause2.10 of the framework,the sameis underreview.

2.

WORLD PRACTICE ON MVNO


As wireless services expand their worldwide stronghold, these wireless service providers

operating in developedeconomieslike Japan,South Korea, and Western India which have reached
or are very close to cent percent mobile penetration are already seeing decline in revenue growth.
As the profitability is under tremendous pressure due to demand saturation, and increasing
competition service providers are diversifying into wireless data and other innovative differentiator
services. One such innovation has been the emergence of Mobile virtual network operators
(MVNOI. One of the best examplesof this is Virgin Mobile UK not only becauseit was first but
also one of the leanest and successful MVNO with having just the brand name and different
customercare number. MVNO was successfulwith just innovative pricing, value added services
and different customer care provisions and by this they managedto come first twice and its host
operator worst despite its product and Network. Now, there are over 100 operational MVNO
ConsultationPaperon MVNO Frameworkin Pakistan
March1,2007

worldwide. Most of the MVNOs are in Europe,USA and Australia with major sharelies in USA.
Moreover, MVNOs are popular in highly competitive and developedmarkets that have appreciable
growth and enough capacity.ValueFirst (India) is anotherexample who empowers its customersto
communicate between varied IT back-end systemsand mobile phones using SMS Softwarel API
Services.ValueFirst provides a unique, end-to-end,global carrier-grademobile data service. Its
mobile data serviceoffering includes"plug and play" applicationlicensingand hosting.Employing
a partnership with Mobile operators, ValueFirst acts as a Mobile Virtual Network Operator
(M\4NO), with a clear focus on SMS mobile messaging.ValueFirst'sMobile MessagingPlatform
is capable of delivering SMS servicesto virtually any CDMA/GSM mobile handsetacrossthe
globe.

Major leading MVNOs have their infrastructure such as MSC, HLR and IN etc and also managing
SIM card by maintaining customerrelated functions like billing, branding etc. Restriction and free
to do environment dependson the commercial agreementbetweenMNO and MVNO.

3. SCOPE OF MVNO
There are a variety of MVNOs. Some are simple re-seller of telecom service/mobile
network serviceswhereasothershave positioned their operationsin a manner that customerdo not
distinguishsignificantly in serviceor network performance.The original five models for MVNO
were developedin 1999 areshownbelow.

t
Affinify Partner

Hybrid

Paperon MVNO Frameworkin Pakistan


Consultation
March1.2007

In the caseof most simple MVNO, the companiesbecomemore than a re-sellerby adding their
own brand name and making own marketing strategies.Where as, some leading M\INO deploy
their own Mobile Switching Center(MSC) and IN infrastructureto facilitate value addedservices.In
this, MVNO treats radio equipment of MNOs as a commodity while offer its own advancedand
differentiated services based on its own IN platform. This allows MVNOs to compete the
incumbent operatorsnot only on the basisof price but also through the servicesbeing offered.

The scope of MVNO in Pakistan is left open to the terms agreedon a commercial basis between
MNOs and MVNOs. The operators(MNOs) can opt for any one model from the given above.
Further, the MNO concerned shall submit a copy of the agreementwith MVNO and other legal
document to PTA for grant of class license to MVNO and after award of license and fulfillment of
necessaryobligations under the license,M\rNO operation shall be commenced.

4.

KEY ISSUES

4.1

Number Allocation:

Since the MVNOs operate under certain commercial agreementwith MNOs, which also
include clauses for exit from such agreements,therefore, the number allocation issue is very
important. Similarly, with number portability regime, this issue becomesmore important. The
numbers blocks for MVNO operation shall therefore be allocated to MNOs and who shall be
responsiblefor its number portability and payment to PTA related issues.
4.2

Branding:
M'\rNO shall be able to its own brand name. They will also be able to sell SIMs under their

brand name on the codesallocatedto MNOs for the samepurpose.


4.3

Billing:

MVNO shall be responsiblefor billing its own customer and keeping record of the billing
information. The MVNO shall approve billing format from the Authority prior to commencement
of service and shall resolve complaints of its customersin this regard'

Consultation Paper on MVNO Framework in Pakistan


March 1,2007

4.4

F'raudand Security:
Mobile phone theft and Fraud are major concernsand the MNOs have policies and

procedureson reporting and deactivating stolen or lost handsets.Since this can be handled at
MSC level, MVNO may not be capable for handling this. Therefore, arrangementsare made in
the commercial contracts between the parties and MNO is obliged to report and deal with any
fraudulent use it detects.In the case,MVNO have been allowed to setup its own MSCs then the
M\rNO shall be responsiblefor making necessaryarrangementto deal with fraud cases.

4.5

National Security

betweenMNOs andMVNOs. In
The nationalsecurityissuewill dependon the agreement
for takingcareof nationalsecurityissues'
caseof Full MVNO, the M\n{O shallbe responsible
for takingcareof nationalsecurityissues.
In all othercases,MNOs shallberesponsible

4.6

USF and R&D Fund Contribution


M\AIO shall contributein the USF and R&D funds on the samerate being paid by the

MNOs.

4.7

Payment of Fees:

The MVNOs shall pay an upfront fee of equalto US$ 10,000.for the classlicense.
Furtherthe MVNO shall also pay an annual fee @ of 05% of its grossrevenueminus interoperatorandPTA charges,

4.8

Interconnect and Roaming


other
The MVNO will not be allowed to make interconnector roamirrgagreementswith

operatorsinsteadwill use the parent N{l{O interconnectand roaming agreements.

4.9

Quality of Service Obligation


set
The MVNO shall be responsiblefor maintaining quality of service as per benchmarks

Paperon MVNO Frameworkin Pakistan


Consultation
March1,2007

by the Authority which also applicable for MNOs. The QoS of MVNOs will be checked
independentlyof its parentMNOs and in casethe QoS is found below the set level the Authority
will reservethe rights to imposepenaltyon MVNOs.

4.10

Customer Care
The MVNO shall be responsibleto establishits own customer care centersto catet for its

own subscriberscomplaints and other related issues.

4.ll

Service Interruption/Suspension/Termination

Once MVNO commencesits service, then the MNO shall provide service to its M\,rNO
under the
without interruption. Also the MNOs shall not suspend/terminateservicesto MVNOs
commercial agreementwithout prior approval of the Authority.

4.12 Termination of MVNO Class License


the MVNO class
In the event if the Authority terminate the license of Parent MNO,
license shall standterminated automatically'

5.

COMMENTS AND CONTACT POINT

Any comments should be


We would welcome your comments on this consultation paper'
.7,2007 Director Generar(wireless Licensing), pakistan Telecommunication
to
forwarded by April
Comments can be emailed to
Authority, Headquarters F-5/1, Islamabad, Pakistan'
dgwl@ptaeov.pkor faxedon # 05l-2878129'

Consultation Paper on MVNO Framework in Pakistan


March 1,2007

A'.ner<. A

DRAFT

Mobile Virtual Network Operator (MVNO) is an operatorthat does not own spectrum
instead, MVNOs

have commercial arrangements with conventional Mobile Network

Operators(MNOs) to buy minutesof use (MoU) for saleto its own customerscustomers.
2.

The PakistanTelecommunicationAuthority allows Mobile Virtual Network Operator

(MVNO) servicesin Pakistanin the light of clause 6.12 of Cellular Mobile Policy 2004.
Mobile operators are also permitted to support M'\rNO services. The following terms and
conditionsshall apply to MVNO serviceoperationsin Pakistan:

2.1

Only a company registered with SECP shall be allowed to provide MVNO

servicesin Pakistan.

2.2

The five MVNO models are shown below. The MNOS are allowed to make

agreementswith interestedparties for MVNO operationsfor any one of the model and which
shall be clearly highlighted in the agreementdocument.

-t

Hybrid
l

Draft MVNO Framework in Pakistan


March, 1,2007

Full IvfVNO

2.3

The MNO that make commercial agreementfor MVNO operation in Pakistan shall

submit the same to the Authority for approval prior giving effect to this agreement. In
addition to the commercial agreement,M\['JO shall also submit application to the Authority
for the award of MVNO Class License. The application shall include documents given in
Appendix-A.

2.4

M\INO shall use its own brand name for the provision of servicesin Pakistan.For this

purpose the Authority shall allocate separatenumber blocks to MNOs for use by its M\rNO
only. Further, each MVNO shall have separatenumber blocks on which it will sell its own
SIM. However, for the number portability, MNOs shall be responsiblewho actually control
the network infrastructure. In case an agreementis singed for Full M\INO model then the
MNOs shall make sure that their concerned MVNOs make arrangementsin MSC etc to
enablenumberportability prior to commencementof servicesby the MVNO concerned.

2.5

M\n{O shall be allowed to install certain network elementsas agreedupon by the

MNOs and as approved by the Authority.

Further the agreement once approved by the

Authority shall not be changed by the MNOs and MVNO without prior approval of the
Authority.

2.6

QoS shall be the sole responsibilityof MVNOs. Since MVNOs shall hold its own

Brand name,market its own SIMs and install certainnetwork elements,therefore,the MVNO
must make sure that its users receive good quality of service as per benchmarks set by the
Authority. In this respectthe MVNO while signing agreementswith MNO should look into
this aspect.

2.7

MNOs shall be responsiblefor the national security issues.In case the agreement

between MNO and MVNO is signed for Full M\rNO under which the MVNO will install
own MSCs then the M\A{O concernedshall make necessaryarrangementsfor the national
security matters.

2.8

The MVNO will hold the ownershipof its own customersand will be responsiblefor

DraftM\ttrO Frameworkin Pakistan


March.l,2007

making necessaryarrangementto facilitate them. The MVNO shall addressthe complaints of


its own usersand for this purposeshall establishat leastone customercarecentrein eachcity
of its operation.

2.9

M\INO shall not be allowed to make roaming agreementwith other local / national I

Internationalmobile networks.The MVNO shall provide roaming facilities to its customers


as per roaming agreementsmadeby its parentMNO.

2,10 MVNO shall be responsiblefor all paymentsdue to PTA as per its license conditions.
MVNO shall also be responsiblefor the conduct / action of its own subscribers, who shall
also abide by the Act, Rules, Regulationspromulgated by the Authority from time to time.
M'fNO shall be responsiblefor the resolution of billing or other disputes with its own
customersas well as MNOs.

2.11 Once an MVNO commencesits service, then the MNO shall provide service to
M\rNO without intemrption. Also the MNOs shall not suspend/terminateservicesto MVNOs
under the commercial agreementwithout prior approval of the Authority.

2.I2 The MVNO ClassLicence shall be issuedfor a period of agreementbetweenMNO and


M\D{O or a valid term of his parent MNO or which ever smaller. If the Authority for any valid
reason terminates the license of Parent MNO then this license shall automatically stand
terminated.

2.I3 This Frameworkmaybe reviewedby the Authority,form time to time,if theAuthority


deemsit fit or circumstances
sorequire.

Draft MVNO Frameworkin Pakistan


Much. 1.2007

fl6vr{ot*

ffia
PAIflSTAN TELECOMMUNICATION

HEADOUARTERS F.5/1 ISLAMABAD. PAKISTAN

LicenceNo. MVNO- 07/WLLLMPTNZ007

ORITY

March

2007

MOBILE VIRTUAL NETWORK OPERATORCLASS LICENCE ISSUEDUNDER


SECTION 2I OF THE PAKISTAN TELECOMMUNICATION (RE-ORGANIZATION)
ACT, 1996

The Pakistan Telecommunication Authority ("The Authority") hereby grants a


non-exclusive
MVNo classLicenseto M/s ............ o....o.o....... (private)
Limited ("The Licensee") to provide the M\rNO Licensed Servicesin pakistan
(excluding AJK and Northern Areas) and to establish, maintain and operate the
Licensed System through parent MNO, subject to the terms and conditions
containedherein.

On behalf of
The Authorifv
(Private) Limited

On behalf of
l W s . . . . . . . . . . . . . . . . . . . . . .P
. .a k i s t a n

-11 -

LIST OF CONDITIONS
PART I - GRANT OF LIC8NCE............
1.1
1,2

S C OP E
OFT H EL IC E N C E
EFFECTIVE
DATEAND TERMOF THELICENCE

PART 2 - RIGHTS OF THE LICENSEE.......


2.T
2.2
2.3

NUMBERSAND SHORTCODES
MOBILENUMBERPORTABILITY........
NATIONALROAMING.....

PART 3 - OBLIGATIONSOF THE LICENS8E...............


3.1
3.2
3.3
3.4
3.5

C OMP L IA N C WrT
E HL A W........
RESEARCHAND DEVELOPMENT
FI-IND
ACCESSTO EMERGENCY
SERVTCES
DIRECTORY
INFORMATION
ALTERATION
OFNETWORK

PART 4 - FEESAND OTHER CHARGES...............


4,1
4.2
4,3

PAYMENTOF FEES..
UNIVERSALSERVICEFLrND
GENERALCONDITIONS
CONCERNING
FEES........

PART 5 - GENERAL CONDITIONS........


5.1
5.2
s.3
s.4
5.5
s.6
s.7
s.8
5.9
5.10
5.11

OPERATIONOF LICENSEDSERVICES
DISCONTINUATION
OF SERVICES...........
M ON rT OR rN G...............
T N F OR MA T ION
Q UA L IT YOF S E R V IC E ............
I N S P E C T ION ...........
N AT ION A LS E C U R IT Y ............
C AL L R E C OR D S
N E T WOR KS T A N D A R D...............
S
T y p E A P P R OV A OF
L T E RM INALEQUIPM ENT..............
SERVICECOMMENCEMENT
CERTIFICATE..........

PART 6 - RELATIONSWITH CUSTOMERS.........

...........
I
...................
I
.....,.......2
......................3
.......3
..............
3
3
...................4
... ......4
.........4
................
4
..........,,.4
.............
5
..........
s
.........
5
............
6
,.,........6
.........7
.............
7
......,..7
......7
..................7
..... ......
8
............8
..... ......
8
.................
9
............. .........
9
....................
9
............
9
........10

-iii6.r
6.2
6.3
6.4
6.5
6.6
6.7
6.8

STANDARD
C ON T R A C OF
T SERVr CE...........
...................
10
CONTENTS
OF THE STANDARDCONTRACTOF SERVICE..............................
1O
C OMP L A T NSTY S T E M
......................
11
CONTENTAND FORMATOF BILLS
................
11
(CUSTOMER
CODEOF COMMERCIALPRACTICE
CHARTER)........................
11
PRTVACY
OF C OMMU N r CATIONS................
.....................
12
CONFIDENTIALITY
OF CUSTOMER
INFORMATION........
...............12
HARASSING,OFFENSIVE,UNSOLICITED
ORI.INLAWFUL
coMMtrNrcATIoN
.........12

PART 7 - TARIFFS............
7.r
7.2

REGULATION
OFPRTCES
................
13
PUBLICATIONOF TARIFFS,NOTIFICATIONSAND DISPLAYOF
I N F OR MA T ION
......... .......
13

PART 8 - RELATIONSWITH OTHER OPERATORS............


8.1

BE H A V IOU R ............

PART 9 . INFRACTIONSAND SANCTIONS............


9,1

S A N C T IONFSORV IOL A TIONS


OF THELICENCE............

PART 10. TERMINATION AND AMENDMENT


10.1 TERMINATTON
OFTHE LICENCE.
r0.2 AMENDMENT.........
PART rl - GENERAL.........
11.1
TT.2
I r.3
rr.4
11.5

..............
13

AS S IGN ME NOF
T R IGH TS
OWNERSHIP
AND CONTROLREPORTING..............
N O L IA B IL IT YB y T H EA UTHORITY
............
FORCEMAJEURE
COMMUNICATION
WITH THELICENSEE
..........

PART 12- INTERPRETATIONAND DEFINITIONS.........


12.1 INTERPRETATION
r 2 . 2 D EF IN rT ION S ............
APPENDTX1 - QUALTTYOF SERVICESTANDARDS

........13
..... ....
13
.....14
......,.. ....,,14
.....,....14
...................
14
.........
t4
.............
14
...............
14
........
14
............ ........
15
............
15
.............
15
.............
15
..........
15
........
15
.................
19

-1PART 1 GRANT OF LICENCE


1.1

SCOPE OF THE LICENCE


1'1.1'

This Licenceauthorizesthe Licenseeto provide the LicensedM\rNO Class


Services in Pakistan (excluding AJK and Northern Areas), and:to
establish,maintain and operatethe Licensed Systemthrough parent Ml.r-o

r.1.2.

The Licensee shall provide the following Mandatory Services through


ParaentMNO in Pakistan.
Mobile CommunicationService,including;
l.L2.I emergency
services,
1.1.2.2operatorassistanceservices,and
1.1.2-3national and internationallong distanceservicesthroueh parent
MNO
1.r.2.4 suchother Telecommunicationsservicesas the Authority may, by
Regulation,require.

I . 1. 3 .

The Licenseemay provide optional servicesincidental to cellular mobile


telephonythrough ParentMNO;

t.t.4.

The Licencedoesnot authorizethefollowing :


l.l.4.lthe provision of Mobile Cellular TelecommunicationServices in
AJK and Northern Areas
1.1.4.2the interconnection of the Licensed System to the
telecommunication system of a service providei that provides
telecommunications
servicesoutsidepakistan.,
r.1.4.3 such other activities or Telecommunication Services as the
Authority may by Regulation,prohibit.

1 . 1 . 5 . The Licenseeshall not provide any TelecommunicationServiceor install,

maintain or operate any Telecommunication System that is not authorized


in this Licence, except pursuant to a separate licence or other proper
authorizationfrom the Authority.

r . 1 . 6 . The Licenseeshall not authorize or facilitate the Terminal Equipment used


by a fixed line customer in connection with the Limited Mobility
communication service, to be authenticated or used with the Mobill
Communication System.

'L-

t . r . 7.

The Licensee shall provide access to national and intemational Long


Distance Public voice Telephone Services only through th;
interconnection of the Parent MNo Licensed System with the
Telecommunication System of another operator duly licensed by the
Authority to provide national and intemational long distanceservices.

1 . 1 . 8 . The Licenseeshall notify the Authority at the time that the Licenseewishes

to begin to offer a new category of Licensed Services not previously


offered by the Licensee. In its notice, the Licensee shall describe the new
categoryof Licensed Servicesand the expecteddate that they will begin to
be offered commerciallv bv the Licensee.

t.2

EFFECTIVE DATE AND TERM OF THE LICENCE

r.2.t.

This Licence shall come into force on the Effective Date and shall be valid
for a period of agreementor a valid term of his parent operator or which
ever smaller. .If the Authority for any valid reasonterminate the license of
ParantMNo then this license shall automatically standterminated.

1 .2 .2 .

If the Licenseewishes to renew the term of the Licence at the expiration of


the initial or any renewal term(date of expiry of parent lvrNoi it shall
,
submit to the Authority a written requestfor renewil latest agreementwith
MNo at least 3 months prior to the expiration of the current term.

1.2.3.

within 3 months after the receipt of the Licensee's request pursuant to


Condition L2.2,the Authority shall either:
(a)
renew the License on such terms and conditions as are consistent
with the policy of the Federal Governmentat that time to come into effect
at the conclusion of the initial term, or
(b)
give written notice to the licensee stating that the Authority may
not renew the Licence and provide reasonstherefore, which ."urons -uy
include the Licensee's repeated, grave or continuing violations of thl
terms and conditions of this licence, the Act, Rules or Regulations during
the initial terms and conditions of this Licence. The Licensee shall be
given 60 days to make written representations in response to the
Authority's show cause notice. within 30 days after the conclusion of
such 60 days period, the Authority shall hold a hearing at which the
Licensee may make representationsin responseto the Aithority,s show
causenotice. The Licensee may, as part of its representation,indicate the
funher License conditions it is preparedto accepi to reduce the likelihood
of continued or further violations of the terms and conditions of this
licence, the Act, Rules or Regulations. Following such hearing, the
Authority shall, within 15 days, give its determinationeithen

-3(c)
that the Authority has determinednot to renew the License at the
expiration of the initial term, and provide its reasonsfor making such a
determination,or
(d)
to renew the License on such terms and conditions as are
consistentwith the policy of the Federal Govemment at the time. to come
into effect at the conclusion of the initial term, or
(e).
to renew the License on such terms and conditions as are
consistent with policy of Federal Government at that time, to come into
effect at the conclusion of the initial term, and including such additional
terms as the Authority considers appropriate to reduce the likelihood of
continuedor further violations of the terms and conditions of this License,
the Act, Rules or Regulations.

PART 2 : RIGHTS OF THE LICENSEE


2.1

NUMBERS AND SHORT CODES

2.1'1

The MVNO Licenseecan obtain geographicand non-geographicnumbers,as well as


short codes, in accordance with the national numbering plan developed by the
Authority, for use in the provisions of the Licensed Servicesthrough pareni MNO.

2.2

MOBILE NUMBER PORTABILITY

2.2.I

2.3

The MVNO Licenseeshall implement Mobile Number Portability from the Effective
Date according to the regulations / guidelines issued by the Authority from time to
time in casecoreNetwork is installed..
NATIONAL ROAMING

2.3.1 The Licenseeshall not be allowed to make roaming agreementwith other local /national
mobile networks. The MVNO shall provide roaming facilities to its customers as per
roaming agreementsmade by its parent MNO.

-4PART 3 OBLIGATIONS OF THE LICENSEE


3.1

COMPLIANCE WITH LAW

3.1.1. This Licenceis subjectto the terms and conditionscontainedherein and to the Act, Rules
and Regulations. In the event of any conflict or inconsistencybetween the provisions of
this Licence, and the provisions of the Act, Rules or Regulations,the provisions of the
Act, Rules and Regulationsshall prevail.
3.I.2

The Licenseeshall establish,maintainand operateits MVNO LicensedSystem,and shall


provide the Licensed Services thorugh parent MNO, in compliance with the laws of
Pakistan.

3.1.3 The Licensee shall at all times co-operate with the Authority and its authorized
representativesin the exercise of the functions assignedto the Authority under the Act.
The Licensee shall comply with all orders,determinations,directives and decisionsof the
Authority.
3.2

RESEARCH AND DEVELOPMENT FUND

3.2.1 During each Financial Year of the Licensee,the Licenseeshall devote to researchand
development activities in Pakistan an amount calculated on the basis of 0.5% of the
Licensee's Annual gross revenue from Licensed Servicesminus inter-operator payment
and ParentMNO relatedpayments.
3.2.2 In any Financial Year of the Licensee,the Licenseemay satisfy its requirementsunder
Sub - Clause 3.2.1. by making a contribution to the Researchand DevelopmentFund
establishedby the FederalGovernment.
3.3

ACCESS TO EMERGENCY SERVICES

3.3.1 The Licenseeshall provide its customerswith accessto governmentemergencyservices,


including automatic connectionsto local police, fire and ambulanceassistanceby means
of a simple telephonenumber with operatorstandbyassistanceavailable in caseof failure
of Licensee's automated system. The Licensee shall comply with other requirements
imposed by the Authority in relation to emergencyservices.
3.4

DIRECTORYINFORMATION

3.4.I

The Licenseemay provide directoryenquiry serviceto its customers,consistingof access


to current information as the telephone numbers of its customersand the customers of
other cooperating Operators, except for those customers that request not to have such
information publicly disclosed.

3.4.2 The Licensee may, on an annual basis, provide printed directories to its customers.
Printed directories shall contain information regarding the names and telephone numbers
of the Licensee'scustomersand the customersof other cooperatingOperators,exceptfor
those customersthat requestnot to have such information publicly disclosed.

-53.4.3 The Licenseemay permit other Operatorsto accessits directory information, consisting
of customer name, addressand telephonenumber, except for those customersthat request
not to have such information publicly disclosed, in order to permit such Operators to
of,fertheir own directory enquiry service and to print telephonedirectories. The Licensee
shall negotiate the pricing, terms and conditions of such accesswith other Operatorsthat
request the same. If the Licensee and other Operator are unable to agree on the pricing,
terms and conditions of such access,either Operatormay refer the matter to the Authority
as a dispute relating to interconnection.
3.5

ALTERATION OF NETWORK

3.5.1 The Licenseeshall, within such reasonabletime and in such manner as may be directed
by the Authority, and at its own expense,alter the course, depth, position or mode of
attachmentof any apparatusforming part of its Licensed Systemwhich may causehazard
to human life/community and is deemedagainstthe public interest.

PART 4 FEES AND OTHERCHARGES


4.I PAYMENT OF FEES
4.1.l

The Licenseeshall pay the following initial License feesto the Authority:
4.1.1.1I00 % Licensefee in US$ or equivalentPakistanRupeesi.e 10,000US dollar.
For the purpose of conversion of payable fee into Pakistan Rupees, NBP TT
selling rate of the businessday precedingthe date of payment. In absenceof NBP
TT selling rate any other exchangerate mutually agreedby the Authority and the
Licensee shall be used. However, this payment being the initial License fee will
not be excluded from the gross revenue for the purpose of calculation of annual
Licensefee (at the rate of 0.5%o),
USF contribution(at the rateof 1.5%)and R&D
contribution(at the rateof 0.5o/o).

4.1.2 The Licenseeshall pay the following annual feesto the Authority within 120 daysof the
closeof FinancialYear of the Licensee:
4.1.2.1the MVNO Licenseeshall pay to the Authority an amountequivalentto 0.5 % of
the Licensee'sannual grossrevenuefrom Licensed Servicesminus inter-Operator
payments and parent MNO related payments as annual license fee.. However
initial License fee ,collection of charges,penalties
imposed by PTA,if any, and
leasedline chargesshall not be deductpdfrom tlrp grott revonuo,
4.I.2.2 the Licensee shall contribute Universal Service Fund to the Authority, an amount
equivalent to 1.5 Yo of the Licensee'sannual gross revenue from Licensed
Services minus inter-operator payment and related Parent operator (MNO)
mandated payments. However, initial License fee, collection charges, penalties
imposed by PTA, if any and lease line charges shall not be deducted from the
grossrevenue.

-6of the Licensee's


an amount equivalentto 0'5 %o
4.1.2.3the Licensee shall contribute
payment and
ii".rrsed Services minus inter-operator
"i^^,i;=t
annual gross revenu" rror.,
t9 th: Research and
;andateJ pavmenlg
^fee,
-initial
parent
operator
related
collection charges' penalties
License
Development Fund. 'o*.i"r,
from the
tine charges sirall not be deducted
imposed by pTA, if uo''urrJiease
grossrevenue'
4.2

UNIVERSAL SERVICE FUND

4.2.|TheLicenseeisnoteligibletoapplyformoneyfromtheUniversalserviceFund
4.3

FEES
GENERAL CONDITIONS CONCERNING

4.3.lTheLicenseeshallpaya||annualfeestotheAuthoritywithinl20daysoftheendofthe
relate'
Financial Year to which such fees
payment of all fees
available to the Authority, late
4.3.2 In addition to any other remedies
rate of 2o/opet
u" additional fee calculatedat the
including initial License f"" ,r,uiiin"'
date until
month or part thereof from the due
outstanding
the
on
month
"u"t
"*";;l;,
Paid'
statementsrn
to the Authority audited financial
submit
annually
shall
Licensee
4.3.3 The
to thisclause4'
pursuant

support il Jfii'",#"i'"*""r
"f

feespayable

payment of initial
in casethe Licenseefails to make
suspended,
be
may
License
The
4.3.4
Licensefee/annualLicensefeeswithinls0daysofduedateforthepayment.
payment of fees to the
under the Licence to make a
4,3.5 Where the Licensee is required
the Licensee
u t*'ency other than Pakistan Rupees'
denominateilnis
that
Authority
m a y m a k e s u c h p a y m g n t i l t h e e q u i v a l e n t a m oofu nPakistan
t o f P a k Rupees
i s t a n R ushall
p e ebe
s . Tthe
h e rTT
ateol
;quivalent a1ou1t
of
rate
exchange for determining the
the
guok oi pukistan for the business day preceding
National
of
rate
selling
PaYment.

-7 Part 5 GENERAL CONDITIONS

5.1

OPERATION OF LICENSED SERVICES

5 . 1. 1 The MVNO Licenseeshall ensurethat the Licensed Systemand the Licensed Servicesdo
not cause any damage to any Telecommunication System or Telecommunications
Servicesof any other Operator.

s . t . 2 The Licensee shall conduct its operationsand shall establishits Licensed Systemthrough
parent MNO in a mawrcr so that it is not a safety hazard and is not in contravention of
any law, rule or regulation.

5.2

DISCONTINUATION OF SERVICES

5 . 2 . 1 The Licensee shall not discontinueproviding a category of Class Licensed Services


unless (a) the M\/NO Licensee gives the Authority and affected customers at least 90
days prior written notice- of such discontinuation, and (b) Authority's prior written
approval to such discontinuation is obtained. The Authority will not give its written
approval to such discontinuation if the Licensee is in arrearsof any fees payable to the
Authority and any paymentto MNOs.

5.3

MONITORING

5 . 3 . 1 The MVNO Licenseeshall provide in caseSwitch is installed,at its own cost, suitable
equipment ^t premises designated by the Authority, in order to monitor the
communicationsfor the purpose of national security;measureand record traffic; call
detail records;and quality of servicein a mannerspecifiedby the Authodty. The Licensee
shall provide the Authorrty/ concernedagencieswith accessto such equipment,and the
information generatedby such equipment

5.4

INFORMATION

5 . 4 . 1 The Licensee shall furnish to the Authority; such information as the Authority may
demands regarding the Licensee's network plan, network and terminal standards,links
utilized, financial information, costs and accountsor any such other information as the
Authority may from time to time request in connection with its functions, powers and
responsibilities.
5 . 4 . 2 The Licensee shall maintain such books and records as the Authority may require. The
authority shall give the Licenseea reasonableperiod of time, not to exceed120 days,to
implement appropriate routines and systems to comply with any such requirement
imposed by the Authority. Upon request by the Authority, the Licensee shall make its
books and recordsavailable for inspectionby the Authority.

5 . 4 . 3 The Licensee shall maintain financial records and books of accountsin accordancewith
the laws of Pakistan.The Licenseeshall submit audited financial statements,including at
a minimum statementsof profit and loss and assetsand liabilities, to the Authority within
120 daysof the closingdateof FinancialYear of the Licensee.

-85.4.4 The Authority shall take reasonablestepsto maintain the confidentiality of information in
writing that is disclosed to it by the Licensee and which is clearly indicated as
confidential, except that the Authority may disclose information where the Authority
determines that the public interest in disclosure outweighs the Licensee's interest in
maintaining the confidentiality of such information.
5.s

QUALTTY OF SERVICE

5.5.1 The Licenseeshall at all times meet or exceedthe quality of servicestandardsdescribed


in Appendix'l and such other quality of service standardsas the Authority may, by
regulation, require. The Licensee shall maintain records of its performance in meeting
these quality of service standards,and shall submit them to the Authority on a quarterly
basis in such format as the Authority may require. The Licensee shall maintain
supporting records for inspection and technical audit as and when required by the
Authority. The Licenseeshall maintain all such recordsfor a period of three years.

5 . 5 . 2 The Authority may carry out tests on the qualrty of the Licensed Services and the
Licensed System and the Licensee shall extend full co-operation and assistancefor the
purposeincluding provision of test instrumentsand equipment.
J.O

INSPECTION

5.6.1 TheLicenseeshallallow inspectionof anypremisesby a representative


of the Authority
at anytime and furnishto the representative
suchinformationas may be requiredby the
Authority.
5.7

NATIONAL SECURITY

5.7.1

The Licensee shall comply with the national security and other requirements of section
54 of the Act and any other national secudty requirements under the law of the land.

5.7.2

It shall be open to the Authority to restrict the Licensee from operating in any sensirive
arca deftned by the Federal Govetnment from the natjonal securiry angle.

5.7.3 The Licensee shall not transfet the following to any person/place outside Pakistan :5.7.3.1 any accounting information telatrng to subscriber (except for roaming/bilhng);
and
5.7.3.2user inforrnation ;
5.7.4 No local/long distance traffrc (mobile and fixed line) shall be hauled outside Pakistan .
5.7.5

No remote access shall be ptovided to afly person/place outside Pakistan for any
maintenance/ repairs/ databases
/ facility .

-9-

\-t 6

No ciphering equipment or softwate shall be used by the service provider or user


without ptior approval of the Authoritl.'.
the Licensee shall ensute to implement Equipment Identity
Register (EIR) module in the netwotk.

5 . 7 . 7 In the case of Full MVNO

5.8

CALL RECORDS

s . 8 . 1 The Licensee shall maintain call records including called and calling numbers, date,
duration and time, with regard to the communications made on its Telecommunication
Systemfor a period of one year for scrutiny by or as directedby the Authority or required
by security agenciesunder the law.

5.9

NETWORK STANDARDS

5 . 9 . 1 The Licensee shall use any type of network equipment that meets appropriate ITU or
other international telecommunicationstandardsrecognizedby the Authority.

5 . 9 . 2 The Licensee shall ensure that its network is at all times interoperable and
interconnectablewith the networks of other Operators.If the Licensee implements any
new equipment or protocols in its network, the Licensee shall bear the cost of any
modifications to its network to maintain such interoperability and interconnectibility with
the networks of other Operators.

5 . 1 0 TYPE APPROVAL OF TERMINAL EQUIPMENT


5 . 1 0 . 1The Licensee shall not install or connect, or permit the installation or connection of, any
Terminal Equipment unless the Terminal Equipment is (a) type approved, or otherwise
permitted by the Authority, (b) type approved by a recognized telecommunications
equipment type approval agency or a recognizedtelecommunicationsequipment testing
laboratory in a member country of the Organisation of Economic Cooperation and
Development (OECD). The Licensee shall not install or connect, or permit the
installation or connection of, any Terminal Equipment or type of Terminal Equipment
prohibited by the Authority.
5 . 1 1 SERVICE COMMENCEMENT CERTIFICATE
5 . 11 . 1 The Licensee shall not provide any Licensed Services to customers,or accept any
paymentfrom customersin respectof LicensedServicesto be provided by the=Licensee,
until the Licensed has obtained from the Authority a service commencementcertificate
evidencing that the Authority is satisfi.edthat the Licensee has establishedthe Licensed
System,and is able to provide the Licensed Servicesincluding Mandatory Services,in
accordancewith the License.

5 . 1 1 . 2The Licensee shall give 30 days prior written notice to the Authority of the date on which
the Licensee intends to commence providing Mandatory Services to customers. The

-10Licensee shall cooperatewith the Authonty in its investigation of the Licensed System
and the Licensed Services in connection with the issuance by the Authority of a
commencementcertificate.
PART 6 RELATIONS WITH CUSTOMERS
6.I

STANDARD CONTRACT OF SERVICE

6.1.1 The Licenseeshall submit a standardcontractof service,for use with its non-commercial
customers, tbr approval by the Authority, before commencementof its services. The
Licensee shall file the standardcontract, and amendmentsthereto from time to time, with
the Authority for its approval. The Authority shall approve the standard contract if it
contains the terms and conditions describedin sub clause 6.2.1, and it contains the terms
and conditions that are not unduly burdensomeon non-commercialcustomers.
6.I.2

The standard contract, as approved by the Authority, shall apply to all consumersthat
obtain Mobile cellular TelephoneServicefrom the Licensee.

6.1.3 prior to providing Mobile Cellular TelephoneServiceto non-commercialcustomers,the


Licensee shall enter into a contract with such customers in accordance with the standard
form contract approvedby the Authority'
6.1.4 Upon application by the Licensee,the Authonty may waive compliance by the Licensee
with the provisions of sub clause6.1.3 above herein subjectto such terms and conditions
as the AuthoritY maY imPose.
provision of
6.1.5 The Licenseemay enter into agreementswith commercialcustomersfor the
customers.
and
such
Licensed Serviceson terms that are negotiatedbetweenthe Licensee
6.2

CONTENTS OF THE STANDARD CONTRACT OF SERVICE

6.2.1 The standardcontractshall include,at aminimum, the following terms and conditions:
where
6.2.1.1Deposits and alternative methods of providing security for payment
reasonably required, provided that in no circumstancesmay such deposits or security
exceedthe chirges reasonablyanticipatedto be incurred by the customer within a three
(3) month period,
6.2.I.2Pricing or mechanismsby which pricesare determined,
6.2.1.3 Confidentialityof customerinformation,
6.2.1.4Refundsor other rebatesfor serviceproblemsor over-billing,
6.2.I.5 payment terms, including any applicableinterest or administration charges,
6.2.I.6 Minimum contractperiod,and
6.2.1.7Customerand Licenseerights of termination'

- 116.3

COMPLAINT SYSTEM

6.3.1 The Licensee shall establishan efficient and easy-to-usesystem to promptly receive,
process and respond to complaints, claims or suggestionsby customersof Licensed
Services.
6.3.2 The Licensee shall make all reasonableefforts to resolve consumer complaints or
disputeswithout delay and without recourseto the Authority.
6.3.3 If a complaint is filed with the Authority in connection with any dispute between the
Licensee and a customer regarding any activity that is the subject of this Licence, the
Authority may settle the dispute. Without prejudice to the appeal and revision rights
establishedin section 7 of the Act, the Licensee shall abide by any resulting decision of
the Authority.
6.4

CONTENT AND FORMAT OF BILLS

6.4.1 The Licensee may determine the content and format of its bills to customers provided
that:
6.4.1.1in relation to a customer, the bill reflects the types of service and the units for
which chargesare made including, but only to the extent requestedby the customer,the
starting time of each connection,the number called and the duration and number of units
for each call; and
6.4.1.2the Licenseeretainsin its recordsinformationsufficient:
6.4.1.2.1 to identify for customersthe basis of the amount charged for use of
TelecommunicationServices; and
6.4.1.2.2 to provide the Authonty with an independentquality assurancethat the billing
processcomplies with the requirementsset out above
6.4.2 The Licensee shall maintain appropriate billing processesto enable the Licensee to
comply with the billing requirementsof conditionsin clause6.4.
6.4.3 The above information must be made available to pre-paid customerseither in printed or
electronic form upon request. The supply of such information may atttact a reasonable
charge
6.s

coDE oF COMMERCIAL PRACTICE (CUSTOMER CHARTER)

6.5.1 The Licenseeshall publish within six monthsof the Effective Date, a code of commercial
practices approved by the Authority. The code of practice shall include, at a minimum,
provisionscoveringthe following issues:
6.5.1.1A commitmentto take stepsto remedyserviceintemrptionsas soon as reasonably
possible and to provide reasonablecredits to customersfor lengthy outages,

t26.5.I.2 Protectionof the privacy of informationtransmittedover the LicensedSystem,


6.5.1.3Maintenanceby Licenseeof the confidentialityof customerinformation,
6.5.1.4Proceduresfor resolvingdisputesbetweenLicenseeand customers,and

6.6

6.5.1.5 Availability to customersof information conceming their accounts


Licensee.

the

6.5.1.6 Commitment by the Licenseeto customersin respectof standardand


licensedservices.

of

PRTVACY OF COMMUNICATIONS

6 . 6 . 1 The Licenseeshall not monitor or disclosethe contentsof any communicationconveyed


over its Licensed Systemexcept to the extent necessaryfor the purposeof maintaining or
repairing any part of the Licensed Systemor monitoring the Licensee's quality of service,
or exceptas requiredby the Act, the Rules,Regulationsand conditionsof this License.

6 . 6 . 2 The Licensee shall take reasonablemeasuresto safeguard its Licensed System from
unauthorizedinterception of communication carried on the Licensed System.

6.7

CONFIDENTIALITY

OF CUSTOMER INFORMATION

6 . 7 . 1 Except as permitted below, the Licensee shall take all reasonablemeasuresto prevent
information about its customers,including information about their business, other than
directory information,from being disclosedto third parties,including the Licensee'sown
subsidiaries,affiliates and associatedcompanies,except information which is required:
6.7.I J for the processof collectionof debtsowed to the Licensee,
6.'7.1.2by another Operator in relation to the provision of servicesto the customer, and
provided that the information is disclosedin confidenceto that Operator,
6.7.1.3by the Licensee'sauditorsforthe purposeof auditingthe Licensee'saccounts,or
6.7.1.4 for the prevention or detectionof crime or the apprehensionor prosecutionof
offenders or as may otherwisebe authorisedby or under any law of Pakistan.

6 . 7 . 2 Licenseeshall be permittedto discloseinformation about a customerwhere the Licensee

has clearly explained to the customer(a) the nature of the information to be disclosed,(b)
the recipientsof the information to be disclosedand (c) the purposefor the disclosure,
and the customerhas provided Licenseewith consentto such disclosure.

6.8

HARASSING, OFFENSIVE, UNSOLICITED OR IINLAWFUL COMMUNICATION

6 . 8 . 1 The Licensee shall take all reasonablestepsto track and locate and prevent the sourceof

harassing, unsolicited, offensive, fraudulent or unlawful communication. For that


purpose:

136.8.1.1 Any customer of the Licensee may request (the Requesting Customer) the
Authority or other duly authorized authority in Pakistanto authorize the Licensee
to monitor calls to the Requestingcustomer'smobile handsetor device.
6.8.1.2 The Authority or other duly authorized authority in Pakistan may direct a
Licenseeto monitor communicationto and from a customer'stelephone.
6.8.1.3 The Licenseeshall provide to the Authority the information resulting from the
monitoring of the communication to and from a customer's telephone, including
the identification number or details of the party or parties that are the source of
harassing, offensive fraudulent or unlawful communication and the dates of
occurrenceof such calls and their frequency; and
6.8.1.4 The Authority may direct the Licenseeto undertakeappropriate action to protect
the public from harassing,offensive, fraudulent or unlawful communication. Such
direction may require the Licensee to co-operate fully with and/or provide
relevant information to such other parties identified as being competent
authorities by the Authority in its direction.
6.8.1.5 The Licensee shall, at the request of the Authority, terminate service to any
customerthat is the sourceof harassing,offensive or illegal communication.
PART 7 TARIFFS

7.1

REGULATION OF PRICES

7.1.1 Except as otherwise ptovided in this license or as requited by Law, the Licensee is
free to set tadffs fot the License Servicesas it may deem fit
7.2

PUBLICATION
INFORMATION

OF

TARIFFS,

NOTIFICATIONS

AND

DISPLAY

OF

7.2.1 The Licenseeshall comply with all requirementsregardingpublication of prices, terms,


and conditions, notifications and display of information, as establishedby the Authority
from time to time.

PART 8 RELATIONS WITH OPERATORS


8.1.

BEHAVIOUR

with his parentandotheroperatorsin orderto


8.1.1 The MVNO shallhavegoodrelationship
meetQoS requirementof PTA

-14PART 9 INFRACTIONS AND SANCTIONS


9.1 SANCTIONS FOR VIOLATIONS OF THE LICENCE
9.I.1

If the Authority determinesthat the Licenseehas violated a provision of this Licence or


the Act, Rules or Regulations conditions of this License or any other orders or
instructions of the Authorities, the Authority may by order impose one or more sanctions
provided in the Act, the Rules and Regulationsissuedthere under.
PART 10 TERMINATION AND AMENDMENT

10.1

TERMINATION

OF THE LICENCE

10.1. 1 The Licence shall remain in force until it is terminatedby one of the following events:
10.1.1.1 The term of the Licenceexpireswithout renewal,
10.I . I .2 The Licenseeagreesto the terminationof this Licence,or
10.1.1.3The Licence is suspendedor terminatedin accordancewith the Act, Rules or
Regulations,or the provisionsof this Licence.
IO.2 AMENDMENT
10.2.1 This Licence may be amendedby written agreementbetween the Licensee and the
Authority subjectto the provisions of the Act, Rules and Regulations.
PART 11 GENERAL
11.1

ASSIGNMENT OF RIGHTS

11.1.1 The License grantedunderthe Act and Rules shall be personalto the licenseeand shall
not be assigned,sub-licensedto, transfened directly or indirectly or held on trust for any
person,without the prior written approval of the Authority and agreementof MNO.
II.2

OWNERSHIP AND CONTROL REPORTING

ll.2.l

The Licensee shall notifr the Authority of the occurrenceof any act, agreementor
transaction that to its knowledge, directly or indirectly, results in (a) acquisition by a
person or a group acting in common of more than 10 per cent of the Voting Interestsof
the Licensee,or (b) disinvestmentby a person or a group acting in common having direct
or indirect control of 10 per cent or more of the Voting Interestof the Licensee,of those
Voting Interestto any other personor group of persons.

11.2.2 The Licensee shall give the notification referred to in sub clause ll.2.I above to the
Authority on the later to occur of (a) one day after the date that the Licensee becomes
aware of the act, agreementor transaction,or (b) 30 days prior to the completion of the
act, agreementor transaction.

- 1 511.2.3 For a period of one year following the Effective date, the Licensee shall take all
necessarystepsto ensurethat no transactiondescribedin sub clause lI.2.I takes place
unlessthe prior consentof the Authority is obtained
11.3

NO LIABILITY

BY THE AUTHORITY

11.3.1 No suit, prosecutionor other legal proceeding shall lie against the Authority or any
member or employee of the Authority in respectof anything done or intended to be done
by the Authority in the good faith exerciseof its powers subjectto section 33 of the Act.
II.4

FORCE MAJEURE

11.4.1 Notwithstanding anything to the contrary contained in this License, if the Licensee shall
be renderedunable to carry out the whole or any part of its obligations under this License
for any reason beyond the control of the Licensee, including but not limited, to acts of
God, strikes, war, riots etc, then the performanceof the obligations of the Licensee as it is
affected by such causeshall be excusedduring the continuanceofany inability so caused
, provided that the Licensee has taken all appropriate precautions and reasonable
measuresto fulfil its obligation and that it shall within 14 days of its first occurrence
notify to the Authority the same and causeof such inability and its efforts to remove such
causeand remedyit's consequences.
1T.5

COMMUNICATION

WITH THE LICENSEE

I 1.5.1 The Licenseeshall maintainon file with the Authority a currentaddressfor the Licensee,
including telephone number, fax number and email address,and the name and title of a
contact person, for the pu{posesof receiving communications from the Authority. Any
notice or other communication to the Licenseepermitted under this Licence may be given
by hand delivering the same, or by mail, facsimile, or electronic mail addressedto the
Licenseeat its most recent addresson file with the Authority.
PART 12 INTERPRETATION AND DEFINITIONS

12.I

INTERPRETATION

U.l

In this Licence,words importing the singularshall includethe plural and vice versa.

12.I.2 The headingsin this Licence shall not affect its interpretation.
12.1.3 Any reference,expressor implied, to any legislation (including rules and regulations
issued pursuant to that legislation) includes referencesto that legislation (and rules and
regulations) as it may be amendedor modified from time to time.
12.2

DEFINITIONS

12.2.1 The words and expressionsused herein but not defined shall have the samemeaning as
are respectively assignedto them in the Act, the Rules and Regulations and Licenses

16issuedthereunder. Unless the context otherwiserequires,the following terms used in this


Licence shall have the meaningsindicated below:
(Act"

meansThe PakistanTelecommunication(Re-organization)Act 1996.

"Authority" meansthe PakistanTelecommunicationAuthority establishedunder section


3 of the Act.
"Basic Public Telephone Access Service" means a TelecommunicationsService
through Parent MNO providing accessto the PSTN and comprised of technical features
which permit the establishingof a telephony channel capable of allowing users to make
and receive local, long distanceand intemational real time voice telephonecalls.
"Board" meansthe FrequencyAllocation Board.
"Control" means control in any manner that results in control in fact of more than 10%
or more, whether directly through ownership of shares or indirectly through an
agreement,arrangementor otherwise,or indirectly through an agreementor arrangement
involving next of kin.
6'Effective Date" means the date on which this Licence is issued by the Authority and
appearingon the first page of this Licence, which date may be 30 days after the Authority
receivesfrom the Licenseeall initial feesdescribedin sub clause4.l.l.L
ttFederal Government" meansthe FederalGovernmentof Pakistan.
"Financial Year" means the period of twelve (12) months in respect of which the
Licensee is required to make up its Annual Report and Audited Accounts under the
CompaniesOrdinance,I 984.
"Freephone Service" means the service of routing a telephone call with a nongeographic number to a hidden geographic or mobile number, with no charge to the
calling party.
(6ITU" means
the Intemational TelecommunicationsUnion.
"Licence" means this Licence, the terms and conditions applicable thereto, and any
amendmentsthereto.
"Licensed Services'nmeansthe Mandatory Servicesand the Optional Services.
"Licensed System" means the Telecommunication Systemswhich are in existence and
operational or installed or otherwise provided, maintained and/or operated by the
Licenseethrough ParentMNO now and at any time and from time to time for the purpose
of providing LicensedServicesby whatevermeans.

17"Long Distance" meansend to end communicationbetweenpoints that are (i) locatedin


different Regions or (ii) such other distanceapart as the Authority may by Regulations
specify and the sameis applicablethrough ParentMNO.
"Long Distance and International Licensee" meansa Licenseelicensedto offer end to
end communication betweenpoints that are (i) located in different Region or (ii) located
in Pakistanand outside of Pakistanor (iii) such other distanceapart as the Authority may
by Regulations,specify and the sameis applicablethrough parent MNo.
"Mandatory Services" meansthe TelecommunicationsServicesthat the Licensee must
provide underthis Licence,and which are describedin sub clause1.1.2of the License.
"Mobile Communications Service" means a wireless-basedTelecommunications
Service where the Terminal Equipment may be connected to the Telecommunications
Systemby wirelessmeansand usedwhile in motion.
('Mobile

Numbering Portability" meansa facility providedby any licensedprovider of


Mobile Services to another which enables any User to whom a telephone number has
been assignedto continue to be provided with Mobile Servicesusing the same number
irrespectiveof the identity of the serviceprovider providing the service;
"Mobile Virtual Network Operator (MVNO)' meansa personwho has no licenseto
operate a mobile TelecommunicationNetwork and no frequency assignments, but who
will provide Mobile Services to his own users by means of entering into arrangements
with a Licensed Operator of a mobile TelecommunicationsNetwork for the provision to
him of capacity and facilities on that network.
"Mobile Network Operator(MNO)" means a company who has the license to provide
Mobile LicensedTelecomserviceswithin Pakistanas per clause1.1
"National Numbering Scheme" meansthe schemeadministeredby the Authority which
sets out the sequence of numbers or other characters which shall be used to route
telephony traffic to specific locations;
"Network Connection Point" is a location at which other Operatorscan send to or
receive from the Licensee voice or data traffrc originated by or destined for the
Licensee's customersthrough parent operator.
"Network Termination Point" means any point or node forming part of Licensed
System to which users may connect to the Licensed Systemby means of a wireless link
and Public TelecommunicationNetwork and are necessaryat which Terminal Equipment
may be connectedthrough parent operator.
"Operator" means any person authorized by a licence issued by the Authority to
provide Telecommunication Services or to establish, maintain and operate a
TelecommunicationSystem through parent op erutor.

- 1 8"Parent MNO" means the Mobil Network Operator with which licensee will have
commercial agreement for the provision mobile communication services on its
telecommunicationSystem .
"Premium Rate Service" meansthe service of routing a telephonecalls with a nongeographic number to a hidden geographic or mobile number, with a premium rate
chargeto the calling party through ParentMNO.
o'Public Mobile Payphone Services" meansthe commercialprovision
to the public of
mobile Public TelephoneAccessServicesthroughParentMNO.
"Region" means a telecommunications administrative region, as determined by the
Authority.
"Regulations" meansall or any regulationsissuedfrom time to time by the Authority.
66Rules"means all or any rules issued from time to time by the Federal Government
under the Act.
"Telecommunication Service" meansa serviceconsistingin the emission,conveyance,
switching or reception of any intelligence within, or into, or from, Pakistan by any
electrical,electro-magnetic,electronic,optical or optio-electronicsystem,whether or not
the intelligence is subjectedto re-arrangement,computation or any other process in the
courseof the servicethrough ParentMNO.
"Terminal Equipment" meansequipmentwhich is directly or indirectly connectedto
any Network Termination Point and which is used directly by users in order to access
TelecommunicationsServices.
'USO" means universal service obligation as defined in any Regulations issued by the
Authority from time to time;
o'Voting Interest" means,in respectof
(a) a corporation with sharecapital, meansthe vote attachedto a voting share,
(b) a corporation without sharecapital, means an interest that entitles the owner to voting
rights similar to those enjoyed by the owner of a voting share,
(c) a partnership, a trust, an associationor a joint venture, means an ownership interest in
the assetsof it that entitles the owner to receive a share of the profits of it, to receive a
shareof the assetsof it on dissolution and to participate directly in the managementof it or
to vote on the election of the personsto be entrustedwith the power and responsibility to
manageit, and
(d) a not-for-profit partnership,trust, associationor joint venture, meansa right that entitles
the owner to participate directly in the managementof it or to vote on the election of the
personsto be entrustedwith the power and responsibility to manageit.

APPENDIX- 1
QUALITY OF SERVICE STANDARDS
l.i

The Licensee shall take reasonableand prudent measuresto ensurethat the Licensed
Systemand Licensed Servicesare available and operateproperly at all times.

1.2

Any fault in any component of the Licensed System or Licensed Service shall be
repairedas early as possible.

1a
t1

During each calendarmonth, Licenseeshall meet or exceedthe following quality of


service standards (except for causes attributable to another Operator or a service
provider that provides telecommunicationsservicesoutsidePakistan):
Minimum target
Indicators

Short term
( 3 vears)

ServiceProvisioning
Service Activation Time
Post-Paid
Pre-paid

Long term
(3 vears on)

2hrs.

Remarks

thr.
30 min.

lhr.

Service Quality
Network Down-time (Average
acrossall sites)r

< 2 Y o i n a n yI
calendarmonth
< 1o/oover a I
rolling year
period

< 17oover a I month


period

Grade of Service (end to end


blockins)

<:4oh in busy
hour

<:2Yo in busy hour

Community
lsolation/ Cell-Site
Not longer than
DownTime(AverageAcrossAll
48 hours
Sites)'
Call ConnectionTime3
CallCompletion
Ratioa
Advanced Service Interuption
Notice

<=f

This relates to the percentage of


time network is operating.
The objective is to ensure
maximum operability of network
to the consumers.

Not longer than24


hours
<=$

>960/o

>98%

>=1 day

>:3 days

This notice is normally given


planned
when
system

I
Network Down-time (Average across all sites) mentioned in MCP-MoIT and is opposite of what was previously mentioned as
Network Operability in the QoS document releasedby PTA
'Cell-site
Down-time (for each site) mentionedin MCP-MoIT and is same as what was previously mentioned as Community
Isolationin the QoS documentreleasedby PTA exceptfor the values
I
Call ConnectionTime mentionedin MCP-MoIT and is sameas what was previously mentionedas post Dialling Delay in the
QoS document releasedby PTA
a
Call CompletionRatio mentionedin MCP-MoIT and is sameas what was previouslymentionedas ServiceReatinabilityin the
QoS documentreleasedby PTA exceptfor the values

MOS6 Score> 3

CallQualitys

MOS Score> 3

Bench Mark
Short term
Long term
( 3 vears)
(3 vears on)

Indicators

enhancements, updates
or
upgradesare to be performed.
This is derived fro a scaleof l-5,
where I stands for poor quality
and 5 for excellent.
Voice quality is determined
through Mean Opinion Score
methodologyas recommendedby
ITU-T
in
recommendation
numberP.800.

Remarks

Customer's Complaints

Customer
Complaints/l00
Subscribers
/ Month
Comolaints
ResardinsBillins

<=2Yo

<=l %o

<:3 Vo

<:1 o/o

95%

98%

98%

t00 %

Witlrin 24hrs.

92%

95%

within 48 hrs.

95%

100%

Complaints
Regarding
Network Onerabilitv
ComolaintTurn Around Time
%ioageof Billing Complaints
Resolved
Within 24hrs.

Within 48 hrs.
Yoageof Complaints (Regarding
Network Operability)Resolved

Billins Service

0.2per100
bills issued

Billing Complaints
Reconnection Time
ClearingArrears

After

30min.

0.2 per100bills Applies to complaints which are


valid
issued
15min.

The time it takes in minutes to


reconnectthe serviceoncethe due
payment has been made by the
customer

Onerator Service

s Call

Quality mentionedin MCP-MoIT and is sameas what was previouslymentionedas CustomerPerceivedConnection


Qualityin the QoSdocumentreleasedby PTA exceptfor thevalues
o Bit ErrorRatemeasurements
canbe usedasa proxy

OperatorAssistanceResponse
Time Within 30sec.
Customer
Complaint
ResponseTime
Within 30sec.

>=96oh

>:98 %o

>:96%o

>=98 o/o

Directory
Assistance
Response
Time
Within30sec.
Calls to Emergency Numbers
Handled
Within 30 Seconds
Directorv Assistance

UpdatedDirectoryAssistance

&
Network
Management
Securitv
Security
Voice
during
Connection
PersonalInformation Securiff
Provisioning of Centralized
CustomerComplaint Database
Provisioning of Computerized
Directorv Access Svstem
Probability of Fraud on lJser's
Account

There shouldbe a queuingsystem


for all operatorattendedcalls i.e.,
no call should receive a busy
signal; rather each call is queued
and maximum calls (as shown in
the given benchmark) should be
answeredwithin 30 seconds.

>=98oh

>98Yo

Provisioning
of redirect
mechanismto
PTCL
directory

100%

Provisioning
of
updateddirectory
assistance

Cellular operators are currently


not providing directory assistance
to their subscribers.As cellular
operatorshave a relatively smaller
network, the provisioning of
directory service is not proposed
for them in the short term.
However we propose that all the
cellular operatorsshould provide
redirect service mechanism for
accessing
PTCL
directory
assistanceto their subscribers.In
the long-term period, they are
required to provide their own
directorvassistanceservice

Yes
Yes
Yes
Yes
No

Operator should demonstrate to


that
PTA
fraud
controlled
oroceduresare in olace.

Annn<-l-* <
*o 3

G';nr-.---

sr tr-rT,

JU

l4r
\-"

rA

covERNMENT oF PAKISTAN
a r(rsTAN TELECOMMUNICATION AUTHORITY

HEADQUARTERSF-S4T,ISLAMABAD
http://www.pta.gov.pk
ication No ito be fittedby PTA,1

CHECK LIST FORM


(TO BE SUBMITTED WITH THE APPLICATION)

Check

Items

({) ir

#of
for PTA use only
Pages

attached

1
2.
3.

4.

5.

6.
7.
8.

9.

Applicant(s)profile; see'CMVNO FORM-B'


EvaluationFee; see'CM\INO fee doc-C'. Submit
proof of deposit
Certifi cate of Incorporation (including
Memorandum & Article of Association and Form29 andForm-A duly certifiedbv SECP)
4,, Attested Copies of ComputerizedNational
Identity Card for Pakistaninational shareholder
directors.
b';,'Attestedcopiesof Passportsof foreign nationals
submitted through Ministry of Foreign Affairs
after security clearances.
Undertaking on duly notarrzedstamppaper for:
a. That the Company or its Directors have never
been declaredinsolvent by any court of law.
b. That the Directors of the company have never
beenconvictedby a court of law for major
offences or unethical/immoral turpitude (other
than minor offences).
c. That neither the applicant Company nor its
shareholderdirectors are defaulter(s)of PTA.
Bio-dataof key managementpersonnel
Brief Descriptionof the Applicant's BusinessPlan
Technical Plan
Copy of proposedServiceLevel Agreementswith
the Access / InfrastructureProvider/ customers.

Page1 of5

CMVNIO FORM-A

{rn

GOVERNMENT OF PAKISTAN
PAKISTAN TELECOMMUNICATION AUTHORITY
HEADQUARTERS F-5[I, ISLAMABAD
http: / / www.pta. gov.pk

APPLICANT PROFILE1
(To be submitted with the application form)
l.

Company details

I .l Name of company

1.2Postaladdress

Telephone:

Fax:

Email:

Telephone:

Fax:

Email:

2.

Contact Information

2.1

Name of contact

2.2

Designation:

^a

z.J

terizedNational Identity Card

Telephone:

Fax:

Cell PhoneNo:

Pr<<nnrr

Email
Nln

lFnrei

-norq

nn

v , L L J

l r z t\

At any time in future, if any of the abovementionedinformationchanges,the applicant'sofficial


mentionedaboveor any one of the shareholderdirectorwill be liable to submit the same
representative(s)
to PTA licensins division.

Page2 of 5

CMVNO FORM-B

to be filled b

Application Form
certify that I am the authorizedrepresentativeof
'The Company', and is legally authorized sign
to
, hereinaftercalled

[,

M/s

for and on behalf of The Company and that all the statementsmade are true and correct
to the bestof my knowledge.
I.

On behalf of the companyIwould like to applyfor Class MVNO service License.

2. I have completedall prerequisites.


3. I understand that the submission of this proposal does not automatically qualify my
companyfor award of a Class MVNO Service license by Pakistan Telecommunication
Authority.

Full Name (

comma after every

Postaladdress

Telephone(in Company'sname):

Fax:

Email:

Signature:

Date

Name:

CMVNO fee (l.0) doc-C

,,k

GOVERNMENT OF PAKISTAN
PAKISTAN TELECOMMUNICATION AUTHORITY
HEADQUARTERS F-5/I, ISLAMABAD
http: / / www.pta. gov.pk

vfA

License Fee2Framework
icense ProcessingFee (non-refundable):
Rs.50,000.00
lnitial License Fee (ILF)

CMVNOS(Nationwide)

US$10,000or equivalentPakistanRupees

ALF, USF& R&Dwill be as per term and conditioncontainsin the license

2 AU Bank Drafts to be depositedat National Bank of Pakistan, Marriott Hotel Branch,


'Pakistun TelecommunicationAuthority Fund'A./C No.
Islamabad, in the name of
NIDA-TI.
PaSe 4 of 5

CMVNofee(1.0)doc-C

1) Fees
a) Initial License Fee
The Licensee shall pay the initial license fee to the Authority as given in the table on
page (4) of this document) prior to the Effective Date or as modified through
regulations from time to time by the Authority.
b) Annual Fees
D The MVNO Licensee shall pay to the Authority an amount equivalent to 0.5
%oof the Licensee'sannual gross revenue from Licensed Services minus
inter-Operator payments and parent MNO related payments as annual license
fee.. However initial License fee, collection of charges,penaltiesimposedby
PTA, if any, and leased line charges shall not be deducted from the gross
revenue;
ii) The Licensee shall contribute Universal Service Fund to the Authority, an
amount equivalent to 1.5 oh of the Licensee'sannual gross revenue from
Licensed Servicesminus inter-operatorpayment and related Parent operator
(IvINO) mandatedpayments.However, initial Licensefee, collection charges,
penalties imposed by PTA, if any and leaseline chargesshall not be deducted
from the grossrevenue;
o/o
iii) The Licenseeshall contributean amountequivalentto 0.5 of the Licensee's
annual gross revenue from Licensed Services minus inter-operator payment
and related Parent operator (tvINO) mandatedpayments to the Researchand
DevelopmentFund. However, initial Licensefee, collectioncharges,penalties
imposed by PTA, if any and leaseline chargesshall not be deductedfrom the
grossrevenue.for the most recentlycompletedFinancialYear; and
iv) In addition to any other remediesavailable to the Authority, late payment fee
shall incur an additional fee calculated at the rate of 2%oper month on the
outstandingamount, for every day or part thereof from the due date until paid.
c) Other
In addition to the fees payable hereunder,the Licensee shall pay to the Authority all
fees required to be paid under the Act, Rules and Regulations2) Payment Mode
a) The fee(s)may be depositedin the PTA CollectionAccount maintainedwith
National Bank of Pakistan,Islamabad.
b) The Licenseemay also pay through crossedCheque,Pay order or Bank draft
drawn in favor of PakistanTelecommunicationAuthority.
c) The Fee(s)may also be remitted through Telegraphic Transfer or any other
electronic mode under intimation to Director Licensing.
CMVNO fee (1.0) doc-C

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