Escolar Documentos
Profissional Documentos
Cultura Documentos
CONSTJLTATION
PAPE,R
ON
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.
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
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
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'
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
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
4.9
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
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.
5.
A'.ner<. A
DRAFT
Mobile Virtual Network Operator (MVNO) is an operatorthat does not own spectrum
instead, MVNOs
Operators(MNOs) to buy minutesof use (MoU) for saleto its own customerscustomers.
2.
(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
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
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
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
2.9
M\INO shall not be allowed to make roaming agreementwith other local / national I
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.
fl6vr{ot*
ffia
PAIflSTAN TELECOMMUNICATION
ORITY
March
2007
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
NUMBERSAND SHORTCODES
MOBILENUMBERPORTABILITY........
NATIONALROAMING.....
C OMP L IA N C WrT
E HL A W........
RESEARCHAND DEVELOPMENT
FI-IND
ACCESSTO EMERGENCY
SERVTCES
DIRECTORY
INFORMATION
ALTERATION
OFNETWORK
PAYMENTOF FEES..
UNIVERSALSERVICEFLrND
GENERALCONDITIONS
CONCERNING
FEES........
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..........
...........
I
...................
I
.....,.......2
......................3
.......3
..............
3
3
...................4
... ......4
.........4
................
4
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5
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s
.........
5
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6
,.,........6
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7
......,..7
......7
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..... ......
8
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..... ......
8
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9
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9
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9
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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
BE H A V IOU R ............
..............
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
..........
........13
..... ....
13
.....14
......,.. ....,,14
.....,....14
...................
14
.........
t4
.............
14
...............
14
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14
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15
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15
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15
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15
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15
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19
r.1.2.
I . 1. 3 .
t.t.4.
'L-
t . r . 7.
1 . 1 . 8 . The Licenseeshall notify the Authority at the time that the Licenseewishes
t.2
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 .
1.2.3.
-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.
2.1'1
2.2
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.
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
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
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
DIRECTORYINFORMATION
3.4.I
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.
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.
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.
5.1
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
5.3
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 . 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
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
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 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
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.
6.2.1 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
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
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,
6.6
the
of
PRTVACY OF COMMUNICATIONS
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.
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
6 . 8 . 1 The Licensee shall take all reasonablestepsto track and locate and prevent the sourceof
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
BEHAVIOUR
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
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
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
- 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
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
<:4oh in busy
hour
Community
lsolation/ Cell-Site
Not longer than
DownTime(AverageAcrossAll
48 hours
Sites)'
Call ConnectionTime3
CallCompletion
Ratioa
Advanced Service Interuption
Notice
<=f
>960/o
>98%
>=1 day
>:3 days
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.
Onerator Service
s Call
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
>=98oh
>98Yo
Provisioning
of redirect
mechanismto
PTCL
directory
100%
Provisioning
of
updateddirectory
assistance
Yes
Yes
Yes
Yes
No
Annn<-l-* <
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sr tr-rT,
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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
Items
({) ir
#of
for PTA use only
Pages
attached
1
2.
3.
4.
5.
6.
7.
8.
9.
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
Telephone:
Fax:
Cell PhoneNo:
Pr<<nnrr
Email
Nln
lFnrei
-norq
nn
v , L L J
l r z t\
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.
Full Name (
Postaladdress
Telephone(in Company'sname):
Fax:
Email:
Signature:
Date
Name:
,,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
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