8/10/2019 mvno_paper_160507 (1)

1/39

8/10/2019 mvno_paper_160507 (1)

2/39

t .2 ,3 .

4 . 4 .14.24.34.44.54.64 ; l4 .84 .94 .104 .11

5 .6.7 .8 .

CONTENT

IntroductionWorld Practice on MVNOScope of MVNO

Key IssuesNumber AllocationBrandingBillingFraud and SecurityNational SecurityUSF and R&D Fund ContributionPayment of FeesInterconnect & RoamingQuality of Service ObligationsCustomer CareService nterruption / Suspension TerminationComments & Contact PointDraft MVNO Framework n PakistanDraft MVNO Class LicenseApplication Materials

aJ

J

4

5555666666

77

Annex -AAnnex-BAnnex-C

8/10/2019 mvno_paper_160507 (1)

3/39

Introduction

Mobile Virtual Network Operator (MVNO) is an operator hat does not own spectrum buthave business arrangements with conventional Mobile Network Operators (MNOs), who buyminutes of use MoU) from the MNOs for sale o its own customers.

The MVNO business started n year 1999 and now there are over 100 around the Glob.

Since limited spectrum s available or MNOs, there can only be a small number of operators

(MNOs) in each regiorVcountry. However, anyone else wanting to enter the market may purchase

capacity rom MNO for reselling and become an MVNO.

The Authority, keeping n view clause 6.12 of cellular mobile policy 2004, ssued MVNO

Framework on March 20,2006 for implementation be mobile operators. The MVNO Framework

was prepared n consultation with all cellular mobile operators and 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 operators were lacking network capacity. Now, keeping in view

the changed cenario nd clause 2.10 of the ramework, he same s under eview.

2. WORLD PRACTICE ON MVNO

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

operating n developed economies ike Japan, South Korea, and Western ndia 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 examples of this is Virgin Mobile UK not only because t was first but

also one of the leanest and successful MVNO with having just the brand name and different

customer care number. MVNO was successful with just innovative pricing, value added services

and different customer care provisions and by this they managed o come first twice and its host

operator worst despite its product and Network. Now, there are over 100 operational MVNO

Consultation aper n MVNO Framework n PakistanMarch ,2007

8/10/2019 mvno_paper_160507 (1)

4/39

worldwide. Most of the MVNOs are n Europe, USA and Australia with major share ies in USA.

Moreover, MVNOs are popular in highly competitive and developed markets hat have appreciable

growth and enough capacity. ValueFirst (India) is another example who empowers ts customers o

communicate between varied IT back-end systems and mobile phones using SMS Softwarel API

Services. ValueFirst provides a unique, end-to-end, global carrier-grade mobile data service. ts

mobile data service offering ncludes plug and play application icensing and 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. alueFirst's Mobile Messaging Platform

is capable of delivering SMS services o virtually any CDMA/GSM mobile handset across he

globe.

Major leading MVNOs have heir infrastructure such as MSC, HLR and IN etc and also managing

SIM card by maintaining customer elated functions like billing, branding etc. Restriction and free

to do environment depends on the commercial agreement etween MNO and MVNO.

3. SCOPE OF MVNO

There are a variety of MVNOs. Some are simple re-seller of telecom service/mobile

network services whereas others have positioned heir operations n a manner hat customer do not

distinguish significantly n service or network performance. he original five models for MVNO

were developed n 1999 are shown below.

Hybrid

Consultation aper n MVNO Framework n PakistanMarch .2007

tAffinify Partner

8/10/2019 mvno_paper_160507 (1)

5/39

In the case of most simple MVNO, the companies become more than a re-seller by adding heir

own brand name and making own marketing strategies. Where as, some leading M\INO deploy

their own Mobile Switching Center MSC) and IN infrastructure o facilitate value added services. n

this, MVNO treats radio equipment of MNOs as a commodity while offer its own advanced and

differentiated services based on its own IN platform. This allows MVNOs to compete the

incumbent operators not only on the basis of price but also through the services being offered.

The scope of MVNO in Pakistan s left open to the terms agreed on 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 agreement with MVNO and other legal

document o PTA for grant of class icense o MVNO and after award of license and fulfillment of

necessary bligations under the license, M\rNO operation shall be commenced.

4 . KEY ISSUES

4.1 Number Allocation:

Since the MVNOs operate under certain commercial agreement with MNOs, which also

include clauses for exit from such agreements, herefore, the number allocation issue is very

important. Similarly, with number portability regime, this issue becomes more important. The

numbers blocks for MVNO operation shall therefore be allocated to MNOs and who shall be

responsible or its number portability and payment o PTA related ssues.

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 codes allocated o MNOs for the same purpose.

4.3 Billing:

MVNO shall be responsible or 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 customers n this regard'

Consultation Paper on MVNO Framework in PakistanMarch 1,2007

8/10/2019 mvno_paper_160507 (1)

6/39

4.4 F'raud and Security:

Mobile phone heft and Fraud are major concerns and the MNOs have policies and

procedures on reporting and deactivating stolen or lost handsets. Since this can be handled at

MSC level, MVNO may not be capable or handling this. Therefore, arrangements are made in

the commercial contracts between the parties and MNO is obliged to report and deal with any

fraudulent use it detects. n the case, MVNO have been allowed to setup ts own MSCs then the

M\rNO shall be responsible or making necessary rrangement o deal with fraud cases.

National Security

The national security ssue will depend n the agreement etween MNOs and MVNOs. In

case of Full MVNO, the M\n{O shallbe responsible or taking care of national ecurity ssues'

In all other cases, NOs shallbe esponsible or takingcare of national ecurity ssues.

4.6 USF and R&D Fund Contribution

M\AIO shall contribute n the USF and R&D funds on the same ate being paid by the

MNOs.

4.7 Payment of Fees:

The MVNOs shall pay an upfront ee of equal o US$ 10,000. or the class icense.

Further he MVNO shall also pay an annual ee @ of 05% of its gross evenue minus nter-

operator ndPTA charges,

4.8 Interconnect and Roaming

The MVNO will not be allowed to make nterconnect r roamirrg agreements with other

operators nstead will use he parent N{l{Ointerconnect and roaming agreements.

4.9 Quality of Service Obligation

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

Consultation aper n MVNO Framework n PakistanMarch 1,2007

4.5

8/10/2019 mvno_paper_160507 (1)

7/39

by the Authority which also applicable for MNOs. The QoS of MVNOs will be checked

independently f its parent MNOs and n case he QoS s found below the set evel the Authority

will reserve he rights to impose penalty on MVNOs.

4.10 Customer Care

The MVNO shall be responsible o establish ts own customer care centers o catet for its

own subscribers complaints and other related ssues.

4.ll Service nterruption/Suspension/Termination

Once MVNO commences ts service, then the MNO shall provide service to its M\,rNO

without interruption. Also the MNOs shall not suspend/terminate ervices o MVNOs under the

commercial agreement without prior approval of the Authority.

4.12 Termination of MVNO Class License

In the event if the Authority terminate the license of Parent MNO, the MVNO class

license shall stand erminated automatically'

5. COMMENTS AND CONTACT POINT

We would welcome your comments on this consultation paper' Any comments shouldbe

forwarded by April.7,2007 to Director Generar wireless Licensing), pakistan Telecommunication

Authority, Headquarters F-5/1, Islamabad, Pakistan' Commentscan be emailed to

dgwl@ptaeov.pk r faxed on # 05l-2878129'

Consultation Paper on MVNO Frameworkin Pakistan

March 1,2007

8/10/2019 mvno_paper_160507 (1)

8/39

A'.ner

8/10/2019 mvno_paper_160507 (1)

9/39

2.3 The MNO that make commercial agreement or 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 ts own brand name or the provision of services n Pakistan. For this

purpose he Authority shall allocate separate number blocks to MNOs for use by its M\rNO

only. Further, each MVNO shall have separate number blocks on which it will sell its own

SIM. However, for the number portability, MNOs shall be responsible who actually control

the network infrastructure. In case an agreement s singed for Full M\INO model then theMNOs shall make sure that their concerned MVNOs make arrangements n MSC etc to

enable number portability prior to commencement f services y the MVNO concerned.

2.5 M\n{O shall be allowed to install certain network elements as agreed upon 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 responsibility of MVNOs. Since MVNOs shall hold its own

Brand name, market ts own SIMs and nstall certain network elements, herefore, he MVNO

must make sure that its users receive good quality of service as per benchmarks set by the

Authority. In this respect he MVNO while signing agreements with MNO should look into

this aspect.

2.7 MNOs shall be responsible or the national security ssues. n 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 concerned shall make necessary arrangements or the national

security matters.

2.8 The MVNO will hold the ownership of its own customers nd will be responsible or

DraftM\ttrO Framework n Pakistan

March. ,2007

8/10/2019 mvno_paper_160507 (1)

10/39

making necessary arrangement o facilitate them. The MVNO shall address he complaints of

its own users and or this purpose shall establish t least one customer care centre n each city

of its operation.

2.9 M\INO shall not be allowed to make roaming agreement with other local / national

International mobile networks. The MVNO shall provide roaming acilities o its customers

as per roaming agreements ade by its parent MNO.

2,10 MVNO shall be responsible or all payments ue o PTA as per its license conditions.

MVNO shall also be responsible or the conduct / action of its own subscribers, who shall

also abide by the Act, Rules, Regulations promulgated by the Authority from time to time.M'fNO shall be responsible or the resolution of billing or other disputes with its own

customers s well as MNOs.

2.11 Once an MVNO commences ts service, then the MNO shall provide service to

M\rNO without intemrption. Also the MNOs shall not suspend/terminate ervices o MVNOs

under the commercial agreement without prior approval of the Authority.

2.I2 The MVNO Class Licence shall be issued or a period of agreement etween MNO andM\D{O or a valid term of his parent MNO or which ever smaller. If the Authority for any validreason terminates the license of Parent MNO then this license shall automatically standterminated.

2.I3 This Frameworkmay be reviewed y the Authority, orm ime o time, f the Authoritydeems t fit or circumstances o equire.

DraftMVNO Framework n Pakistan

Much. 1.2007

8/10/2019 mvno_paper_160507 (1)

11/39

fl6vr{ot* D

ffiaPAIflSTAN

TELECOMMUNICATION A ORITYHEADOUARTERS F.5/1 ISLAMABAD. PAKISTAN

Licence No. MVNO- 07/WLLLMPTNZ007 March 2007

MOBILE VIRTUAL NETWORK OPERATOR CLASS LICENCE ISSUED UNDERSECTION 2I OF THE PAKISTAN TELECOMMUNICATION (RE-ORGANIZATION)

ACT, 1996

The Pakistan Telecommunication Authority ( The Authority ) hereby grants anon-exclusive VNo class License o M/s . . . . . . . . . . . . o. . . . o.o. . . . . . . (private)Limited ( The Licensee ) o provide the M\rNO Licensed Services n pakistan(excluding AJK and Northern Areas) and to establish, maintain and operate theLicensed System through parent MNO, subject to the terms and conditionscontained erein.

On behalf of

The Authorifv(Private) Limited

On behalf of

l W s . . . . . . . . . . . . . . . . . . . . . . . a k i s t a n

8/10/2019 mvno_paper_160507 (1)

12/39

- 1 1 -

LIST OF CONDITIONSPART I - GRANT OF LIC8NCE............ ...........

1 .1 SCOPE FTHELICENCE ... . . . . . . . . . . . . . . . .1,2 EFFECTIVE ATEANDTERMOF THELICENCE ..... , . . . . . . .2

PART 2 - RIGHTS OF THE LICENSEE....... ......................3

2.T NUMBERSAND SHORTCODES .......2.2 MOBILENUMBERPORTABILITY..... . . . . . . . . . . . . . . . . .2.3 NATIONALROAMING..... 3

PART 3 - OBLIGATIONS OF THE LICENS8E............... ...................4

3.1 COMPLIANCE rTHLAW.. . . . . . . . . . . . . . . .43.2 RESEARCH ND DEVELOPMENT I-IND .........43.3 ACCESS O EMERGENCY ERVTCES ..... . . . . . . . . . . .3.4 DIRECTORY NFORMATION ...... . . . . , , .43.5 ALTERATION FNETWORK ...... . . . . . . .

PART 4 - FEES AND OTHER CHARGES .............. ..........

4,1 PAYMENTOF FEES.. ... . . . . . .4.2 UNIVERSALSERVICE LrND ............4,3 GENERAL ONDITIONS ONCERNING EES..... . . . , . , . . . . . . . .6

PART 5 - GENERAL CONDITIONS........ .........7

5.1 OPERATION F LICENSED ERVICES .............5.2 DISCONTINUATION FSERVICES..... . . . . . . . . . . . . , . .7s .3 MONrTORrNG... . . . . . . . . . . . . . . . . . .7s .4 TNFORMATION .. . . . . . . . . . . . . . . . .75.5 QUALITYOF SERVICE.. . . . . . . . . . . . . . . . . . . . . .s .6 INSPECTION.. . . . . . . . . .

. . . . . . . . . . . .8s .7 NATIONALSECURITY.. . . . . . . . . . . . . . . . . . . . . .s .8 CALLRECORDS ... . . . . . . . . . . . . . .5 .9 NETWORK TANDARDS... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 .10 TypE APPROVAL FTERMINAL QUIPMENT.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5.11 SERVICE OMMENCEMENTERTIFICATE..... . . . . . . . . . . . . . . . . .

PART 6 - RELATIONS WITH CUSTOMERS......... ........ 0

8/10/2019 mvno_paper_160507 (1)

13/39

- i i i -

6 .r STANDARD ONTRACT FSERVrCE.. . . . . . . . . . . . . . . . . . . . . . . . . . . . .06.2 CONTENTS FTHESTANDARD ONTRACT FSERVICE..... . . . . . . . . . . . . . . . . . . . . . . . . .O6.3 COMPLATNTYSTEM ... . . . . . . . . . . . . . . . . . . .16.4 CONTENT ND FORMATOF BILLS ..... . . . . . . . . . . .16.5 CODEOF COMMERCIAL RACTICECUSTOMER HARTER)..... . . . . . . . . . . . . . . . . . . .1

6.6 PRTVACY FCOMMUNrCATIONS.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .26.7 CONFIDENTIALITYFCUSTOMERNFORMATION...... . . . . . . . . . . . . . . . . .126.8 HARASSING, OFFENSIVE,UNSOLICITED RI.INLAWFUL

coMMtrNrcATIoN ..... . . . .12

PART 7 - TARIFFS............ .............. 3

7.r REGULATION FPRTCES ..... . . . . . . . . . . .37.2 PUBLICATIONOF TARIFFS,NOTIFICATIONS ND DISPLAY OF

INFORMATION ... . . . . . . . . . . . . .3

PART 8 - RELATIONSWITH OTHER OPERATORS............ ........ 3

8.1 BEHAVIOUR.. . . . . . . . . . . . . . . . . . . . 3

PART 9 . INFRACTIONSAND SANCTIONS ........... .....14

9,1 SANCTIONS ORVIOLATIONS FTHELICENCE.. . . . . . . . . . . . . . . . . , . . . . . . , ,14

PART 10 TERMINATION ANDAMENDMENT .....,....14

10.1 TERMINATTON FTHELICENCE. .... . . . . . . . . . . . . . . .4r0.2 AMENDMENT...... . . . . . . . . . . .4

PART rl - GENERAL......... ............. 4

11.1 ASSIGNMENT FRIGHTS ... . . . . . . . . . . . .4TT.2 OWNERSHIP ND CONTROL EPORTING...... . . . . . . . . . . . . . . . . 4I r.3 NO LIABILITYBy THEAUTHORITY... . . . . . . . . . . . . . . . . . . . . . . . . . . . .5rr.4 FORCEMAJEURE ..... . . . . . . .511.5 COMMUNICATION ITHTHELICENSEE..... . . . . . . . . . . . . . . . . .5

PART 12 INTERPRETATION ANDDEFINITIONS......... ............. 5

12.1 INTERPRETATION .......... 5r2.2 DEFINrTIONS.. . . . . . . . . . . . . . . . . . . 5

APPENDTX - QUALTTYOF SERVICE STANDARDS .................9

8/10/2019 mvno_paper_160507 (1)

14/39

1 . 1

- 1 -

PART 1 GRANT OF LICENCE

SCOPE OF THE LICENCE

1' 1.1' This Licence authorizes he Licensee o provide he Licensed M\rNO ClassServices in Pakistan (excluding

AJK and Northern Areas), and:toestablish, maintain and operate he Licensed System hrough parent Ml.r-o

The Licensee shall provide the following Mandatory Services throughParaent MNO in Pakistan.

Mobile Communication Service, ncluding;

l.L2.I emergency ervices,

1.1.2.2 operator assistance ervices, nd

1.1.2-3 national and international ong distance services hroueh parentMNO

1.r.2.4 such other Telecommunications ervices as he Authority may, byRegulation, equire.

The Licensee may provide optional services ncidental o cellular mobiletelephony hrough Parent MNO;

The Licence does not authorizethe ollowing :

l.l.4.lthe provision of Mobile Cellular Telecommunication Services nAJK and Northern Areas

1.1.4.2the interconnection of the Licensed System to thetelecommunication system of a service providei that providestelecommunications ervices utside pakistan.,

r.1.4.3 such other activities or Telecommunication Services as theAuthority may by Regulation,prohibit.

The Licensee shall not provide any Telecommunication Service or install,maintain or operate any Telecommunication

System hat is not authorizedin this Licence, except pursuant to a separate icence or other properauthorization rom the Authority.

The Licensee shall not authorize or facilitate the Terminal Equipment usedby a fixed line customer in connection with the Limited Mobilitycommunication service, to be authenticated or used with the MobillCommunication System.

r.1 .2 .

I 1 3 .

t . t . 4 .

1 .1 .5 .

r. 1 .6 .

8/10/2019 mvno_paper_160507 (1)

15/39

t . r.7

1 .1 .8 .

r.2 . t .

' L -

The Licensee shall provide access to national and intemational LongDistance Public voice Telephone Services only through th;interconnection of the Parent MNo Licensed System with theTelecommunication System of another operator duly licensed by theAuthority to provide national and ntemational ong distance services.

The Licensee shall notify the Authority at the time that the Licensee wishesto begin to offer a new category of Licensed Services not previouslyoffered by the Licensee. n its notice, the Licensee shall describe he newcategory of Licensed Services and the expected date that they will begin tobe offered commerciallv bv the Licensee.

t.2 EFFECTIVE DATE AND TERM OF THE LICENCE

1.2.2.

This Licence shall come nto force on the Effective Date and shall be validfor a period of agreement or a valid term of his parent operator or whichever smaller.

.If the Authority for any valid reason erminate he license ofParant MNo then this license shall automatically stand erminated.

If the Licensee wishes o renew the term of the Licence at the expiration ofthe initial or any renewal term(date of expiry of parent lvrNoi , it shallsubmit to the Authority a written request or renewil latest agreement withMNo at least 3 months prior to the expiration of the current term.

within 3 months after the receipt of the Licensee's request pursuant toCondition L2.2,the Authority shall either:

(a) renew the License on such terms and conditions as are consistentwith the policy of the Federal Government at that time to come into effectat the conclusion of the initial term, or

(b) give written notice to the licensee stating that the Authority maynot renew the Licence and provide reasons herefore, which . urons -uyinclude the Licensee's repeated, grave or continuing violations of thlterms and conditions of this licence, the Act, Rules or Regulations duringthe initial terms and conditions of this Licence. The Licensee shall begiven 60 days to make written representations n response to theAuthority's show cause notice. within 30 days after the conclusion ofsuch 60 days period, the Authority shall hold a hearing

at which theLicensee may make representations n response o the Aithority,s showcause notice. The Licensee may, as part of its representation, ndicate thefunher License conditions it is prepared o accepi o reduce he likelihoodof continued or further violations of the terms and conditions of thislicence, the Act, Rules or Regulations. Following such hearing, theAuthority shall, within 15 days, give its determination eithen

1.2 .3 .

8/10/2019 mvno_paper_160507 (1)

16/39

- 3 -

(c) that the Authority has determined not to renew the License at theexpiration of the initial term, and provide its reasons or making such adetermination, or

(d) to renew the License on such terms and conditions as are

consistent with the policy of the Federal Govemment at the time. to comeinto effect at the conclusion of the initial term, or

(e). to renew the License on such terms and conditions as areconsistent with policy of Federal Government at that time, to come intoeffect at the conclusion of the initial term, and including such additionalterms as the Authority considers appropriate o reduce the likelihood ofcontinued or 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 Licensee an obtain geographic nd non-geographic umbers, as well asshort codes, in accordance with the national numbering plan developed by theAuthority, for use n the provisions of the Licensed Services hrough pareni MNO.

2.2 MOBILE NUMBER PORTABILITY

2.2.I The MVNO Licensee shall implement Mobile Number Portability from the EffectiveDate according to the regulations / guidelines issued by the Authority from time totime in case core Network is installed.

2.3 NATIONAL ROAMING

2.3.1 The Licensee shall not be allowed o make roaming agreement with other local /nationalmobile networks. The MVNO shall provide roaming facilities to its customers as perroaming agreements made by its parent MNO.

8/10/2019 mvno_paper_160507 (1)

17/39

- 4 -

PART 3 OBLIGATIONS OF THE LICENSEE

3.1 COMPLIANCE WITH LAW

3.1.1. This Licence s subject o the terms and conditions contained erein and o the Act, Rulesand Regulations. n the event

of anyconflict or inconsistency

between he provisions ofthis Licence, and the provisions of the Act, Rules or Regulations, he provisions of theAct, Rules and Regulations shall prevail.

3.I.2 The Licensee shall establish, maintain and operate ts MVNO Licensed System, and shallprovide the Licensed Services thorugh parent MNO, in compliance with the laws ofPakistan.

3.1.3 The Licensee shall at all times co-operate with the Authority and its authorizedrepresentatives n the exercise of the functions assigned o the Authority under the Act.The Licensee shall comply with all orders, determinations, directives and decisions of theAuthority.

3.2 RESEARCH AND DEVELOPMENT FUND

3.2.1 During each Financial Year of the Licensee, he Licensee shall devote o research anddevelopment activities in Pakistan an amount calculated on the basis of 0.5% of theLicensee's Annual gross revenue rom Licensed Services minus inter-operator paymentand Parent MNO related payments.

3.2.2 In any Financial Year of the Licensee, he Licensee may satisfy ts requirements nderSub - Clause 3.2.1. by making a contribution o the Research and Development Fundestablished by the Federal Government.

3.3 ACCESS TO EMERGENCY SERVICES

3.3.1 The Licensee shall provide ts customers with access o government mergency ervices,including automatic connections o local police, fire and ambulance assistance y meansof a simple telephone number with operator standby assistance vailable n case of failureof Licensee's automated system. The Licensee shall comply with other requirementsimposed by the Authority in relation to emergency services.

3.4 DIRECTORYINFORMATION

3.4.I The Licensee may provide directory enquiry service o its customers, onsisting of accessto current information as the telephone numbers of its customers and the customers ofother cooperating Operators, except for those customers hat request not to have suchinformation publicly disclosed.

3.4.2 The Licensee may, on an annual basis, provide printed directories o its customers.Printed directories shall contain information regarding he names and telephone numbersof the Licensee's ustomers nd he customers f other cooperating Operators, xcept orthose customers hat request not to have such nformation publicly disclosed.

8/10/2019 mvno_paper_160507 (1)

18/39

- 5 -

3.4.3 The Licensee may permit other Operators o access ts directory nformation, consistingof customer name, address and telephone number, except or those customers hat requestnot to have such information publicly disclosed, n order to permit such Operators toof,fer heir own directory enquiry service and to print telephone directories. The Licenseeshall negotiate he pricing, terms and conditions of such access with other Operators hat

request he same. f the Licensee and other Operator are unable to agree on the pricing,terms and conditions of such access, ither Operator may refer the matter to the Authorityas a dispute relating to interconnection.

3.5 ALTERATION OF NETWORK

3.5.1 The Licensee shall, within such reasonable ime and in such manner as may be directedby the Authority, and at its own expense, alter the course, depth, position or mode ofattachment of any apparatus orming part of its Licensed System which may cause hazardto human ife/community and s deemed against he public interest.

PART 4 FEES AND OTHERCHARGES

4.I PAYMENT OF FEES

4.1.l The Licensee hall pay the following initial License ees o the Authority:

4.1.1.1 00 % License ee in US$ or equivalent Pakistan Rupees .e 10,000 US dollar.For the purpose of conversion of payable fee into Pakistan Rupees, NBP TTselling rate of the business day preceding he date of payment. In absence of NBPTT selling rate any other exchange ate mutually agreed by the Authority and theLicensee shall be used. However, this payment being the initial License fee willnot be excluded from the gross revenue or the purpose of calculation of annualLicense ee (at the rate of 0.5%o), SF contribution at the rate of 1.5%) and R&Dcontribution at the rate of 0.5o/o).

4.1.2 The Licensee shall pay the following annual fees o the Authority within 120 days of theclose of Financial Year of the Licensee:

4.1.2.1the MVNO Licensee shall pay to the Authority an amount equivalent o 0.5 % ofthe Licensee's annual gross evenue rom Licensed Services minus inter-Operatorpayments and parent MNO related payments as annual license fee.. However

initial License fee ,collection of charges,penalties mposed by PTA,if any, andleased ine charges shall not be deductpd rom tlrp grott revonuo,

4.I.2.2 the Licensee shall contribute Universal Service Fund to the Authority, an amountequivalent to 1.5 Yo of the Licensee's annual gross revenue from LicensedServices minus inter-operator payment and related Parent operator (MNO)mandated payments. However, initial License fee, collection charges, penaltiesimposed by PTA, if any and lease ine charges shall not be deducted from thegross evenue.

8/10/2019 mvno_paper_160507 (1)

19/39

- 6 -

4.1.2.3the Licensee shall contribute an amountequivalent o 0'5 %oof the Licensee's

annual gross revenu rror., ii .rrsed Servicesminus inter-operator payment and

related parent operatori^^,i;=t

;andateJ pavmenlg t9 th: Research and

Development Fund. 'o*.i r,-initial

License^fee,

collection charges' penalties

imposed by pTA, if uo''urrJiease tinecharges sirall not be deducted from the

gross evenue'

4.2 UNIVERSAL SERVICE FUND

4.2 . |TheLicensee isnote lig ib le toapplyformoneyfromtheUniversa lserv iceFund

4.3 GENERAL CONDITIONS CONCERNINGFEES

4.3 . lTheLicenseeshallpaya | | annual fees to theAuthor i tywi th in l20daysof theendof theFinancial Year to which such ees relate'

4.3.2In addition to any other remedies available

to the Authority, late payment of all fees

including initial License f ,r,uiiin ' u additional fee calculated at the rate of 2o/opet

month on the outstanding * ;;l;, u tmonth or part thereof from the due date until

Paid'

4.3.3 The Licensee shall annually submitto the Authority audited financial statements

n

support fil Jfii' ,# i' * r fees ayable ursuanto

thisclause '

4.3.4 The License may be suspended, ncase he Licensee ails to make payment of

initial

Licensefee/annualLicensefeeswithinls0daysofduedateforthepayment.

4,3.5 Where the Licensee is required underthe Licence to make a payment of fees

to the

Authority that is denominateiln- u t*'ency other thanPakistan Rupees' the Licensee

m a y m a k e s u c h pa y m g n t i l t h e e qu i v a l e n t a m o un t o f P a k i s t a n R up e e s . T h e r a t e o lexchange for determining the ;quivalent

a1ou1t of Pakistan Rupees shall be the TT

selling rate of Nationalguok oi pukistan for the business day preceding

the rate of

PaYment.

8/10/2019 mvno_paper_160507 (1)

20/39

8/10/2019 mvno_paper_160507 (1)

21/39

J . O

- 8 -

5.4.4 The Authority shall take reasonable teps o maintain the confidentiality of information inwriting that is disclosed to it by the Licensee and which is clearly indicated asconfidential, except that the Authority may disclose information where the Authoritydetermines that the public interest in disclosure outweighs the Licensee's interest inmaintaining the confidentiality of such nformation.

5.s QUALTTY OF SERVICE

5.5.1 The Licensee shall at all times meet or exceed he quality of service standards escribedin Appendix'l and such other quality of service standards as the Authority may, byregulation, require. The Licensee shall maintain records of its performance in meetingthese quality of service standards, and shall submit them to the Authority on a quarterlybasis in such format as the Authority may require. The Licensee shall maintainsupporting records for inspection and technical audit as and when required by theAuthority. The Licensee shall maintain all such records or a period of three years.

5 .5 .2 The Authority may carry out tests on the qualrty of the Licensed Services and theLicensed System and the Licensee shall extend full co-operation and assistance or thepurpose ncluding provision of test instruments and equipment.

INSPECTION

5.6.1 The Licensee hallallow nspection f any premises y a representative f the Authorityat any ime and urnish o the representative uch nformation as may be required by theAuthority.

5.7 NATIONAL SECURITY

5.7.1 The Licensee shall comply with the national security and other requirements of section54 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 sensirivearca 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);an d

5.7.3.2 user nforrnation ;

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 anymaintenanc e repairs databases facility

8/10/2019 mvno_paper_160507 (1)

22/39

\ - t 6

5 . 7 . 7

5. 8

s .8 .1

5.9

5 .9 .1

5.9.2

5.10

5 .10 .1

- 9 -

No ciphering equipment or softwate shall be used by the service provider or userwithout ptior approval of the Authoritl.'.

In the case of Full MVNO the Licensee shall ensute to implement Equipment IdentityRegister (EIR) module in the netwotk.

CALL RECORDS

The Licensee shall maintain call records including called and calling numbers, date,duration and time, with regard to the communications made on its TelecommunicationSystem or a period of one year for scrutiny by or as directed by the Authority or requiredby security agencies under the law.

NETWORK STANDARDS

The Licensee shall use any type of network equipment that meets appropriate ITU orother international elecommunication standards ecognized by the Authority.

The Licensee shall ensure that its network is at all times interoperable andinterconnectable with the networks of other Operators. f the Licensee implements anynew equipment or protocols in its network, the Licensee shall bear the cost of anymodifications to its network to maintain such nteroperability and interconnectibility withthe networks of other Operators.

TYPE APPROVAL OF TERMINAL EQUIPMENT

The Licensee shall not install or connect, orpermit

the installation orconnection of, any

Terminal Equipment unless the Terminal Equipment is (a) type approved, or otherwisepermitted by the Authority, (b) type approved by a recognized telecommunicationsequipment type approval agency or a recognized elecommunications equipment testinglaboratory in a member country of the Organisation of Economic Cooperation andDevelopment (OECD). The Licensee shall not install or connect, or permit theinstallation or connection of, any Terminal Equipment or type of Terminal Equipmentprohibited by the Authority.

SERVICE COMMENCEMENT CERTIFICATE

The Licenseeshall not provide any Licensed Services o customers, or accept any

payment rom customers n respect of Licensed Services o be provided by the=Licensee,until the Licensed has obtained from the Authority a service commencement certificateevidencing that the Authority is satisfi.ed hat the Licensee has established he LicensedSystem, and is able to provide the Licensed Services ncluding Mandatory Services, naccordance ith the License.

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

5 . 11

5 . 1 . 1

5.11 .2

8/10/2019 mvno_paper_160507 (1)

23/39

- 1 0 -

Licensee shall cooperate with the Authonty in its investigation of the Licensed Systemand the Licensed Services in connection with the issuance by the Authority of acommencement ertificate.

PART 6 RELATIONS WITH CUSTOMERS

6.I STANDARD CONTRACT OF SERVICE

6.1.1 The Licensee shall submit a standard ontract of service, or use with its non-commercialcustomers, tbr approval by the Authority, before commencement of its services. TheLicensee shall file the standard contract, and amendments hereto from time to time, withthe Authority for its approval. The Authority shall approve the standard contract if it

contains he terms and conditions described n sub clause 6.2.1, and it contains he termsand conditions that are not unduly burdensome on non-commercial customers.

6.I.2 The standard contract, as approved by the Authority, shall apply to all consumers hat

obtain Mobile cellular Telephone Service rom the Licensee.

6.1.3 prior to providing Mobile Cellular Telephone Service o non-commercial ustomers, he

Licensee shall enter into a contract with such customers in accordance with the standard

form contract approved by the Authority'

6.1.4 Upon application by the Licensee, he Authonty may waive compliance by the Licensee

with the provisions of sub clause 6.1.3 above herein subject o such erms and conditions

as he AuthoritY maY mPose.

6.1.5 The Licensee may enter nto agreements ith commercial customers or the provision of

Licensed Services on terms that are negotiated between he Licensee and such customers.

6.2 CONTENTS OF THE STANDARD CONTRACT OF SERVICE

6.2.1 The standard ontract shall nclude, at aminimum, the following terms and conditions:

6.2.1.1Deposits and alternative methods of providing security for payment where

reasonably required, provided that in no circumstances may such deposits or security

exceed he chirges reasonably anticipated o be incurred by the customer within a three

(3) month period,

6.2.I.2Pricing or mechanisms y which prices are determined,

6.2.1 3 Confidentiality of customer nformation,

6.2.1.4 Refunds or other ebates or service problems or over-billing,

6.2.I.5 payment terms, ncluding any applicable nterest or administration charges,

6.2.I.6 Minimum contract period, and

6.2.1.7 Customer and Licensee ights of termination'

8/10/2019 mvno_paper_160507 (1)

24/39

- 1 1 -

6.3 COMPLAINT SYSTEM

6.3.1 The Licensee shall establish an efficient and easy-to-use ystem o promptly receive,process and respond to complaints, claims or suggestions y customers of LicensedServices.

6.3.2 The Licensee shall make all reasonable efforts to resolve consumer complaints ordisputes without delay and without recourse o the Authority.

6.3.3 If a complaint is filed with the Authority in connection with any dispute between theLicensee and a customer regarding any activity that is the subject of this Licence, theAuthority may settle the dispute. Without prejudice to the appeal and revision rightsestablished n section 7 of the Act, the Licensee shall abide by any resulting decision ofthe Authority.

6.4 CONTENT AND FORMAT OF BILLS

6.4.1 The Licensee may determine the content and format of its bills to customers providedthat:

6.4.1.1in relation to a customer, the bill reflects the types of service and the units forwhich charges are made including, but only to the extent requested by the customer, hestarting time of each connection, he number called and the duration and number of unitsfor each call; and

6.4.1.2 he Licensee etains n its records nformation sufficient:

6.4.1.2.1 to identify for customers he basis of the amount charged for use of

Telecommunication Services and

6.4.1.2.2 o provide the Authonty with an independent quality assurance hat the billingprocess complies with the requirements set out above

6.4.2 The Licensee shall maintain appropriate billing processes o enable the Licensee tocomply with the billing requirements f conditions n clause 6.4.

6.4.3 The above nformation must be made available to pre-paid customers either in printed orelectronic form upon request. The supply of such information may atttact a reasonablecharge

6.s coDE oF COMMERCIAL PRACTICE (CUSTOMER CHARTER)

6.5.1 The Licensee shall publish within six months of the Effective Date, a code of commercialpractices approved by the Authority. The code of practice shall include, at a minimum,provisions covering he following issues:

6.5.1.1 A commitment o take steps o remedy service ntemrptions as soon as reasonablypossible and to provide reasonable redits o customers or lengthy outages,

8/10/2019 mvno_paper_160507 (1)

25/39

t 2 -

6.5.I.2 Protection of the privacy of information ransmitted ver he Licensed System,

6.5.1.3 Maintenance y Licensee f the confidentiality of customer nformation,

6.5.1.4 Procedures or resolving disputes etween Licensee nd customers, nd

6.5.1.5 Availability to customers of information conceming their accountsLicensee.

6.5.1.6 Commitment by the Licensee o customers n respect of standard andlicensed services.

PRTVACY OF COMMUNICATIONS

The Licensee shall not monitor or disclose he contents of any communication conveyedover its Licensed System except o the extent necessary or the purpose of maintaining orrepairing any part of the Licensed System or monitoring the Licensee's quality of service,

or except as required by the Act, the Rules, Regulations nd conditions of this License.

The Licensee shall take reasonable measures o safeguard ts Licensed System fromunauthorized nterception of communication carried on the Licensed System.

CONFIDENTIALITY OF CUSTOMER INFORMATION

Except as permitted below, the Licensee shall take all reasonable measures o preventinformation about its customers, ncluding information about their business, other thandirectory nformation, rom being disclosed o third parties, ncluding he Licensee's ownsubsidiaries, affiliates and associated ompanies, except nformation which is required:

6.7 I J for the process f collection of debts owed o the Licensee,

6.'7.1.2 by another Operator n relation to the provision of services o the customer, andprovided that the information is disclosed n confidence o that Operator,

6.7.1.3 by the Licensee's auditors orthe purpose of auditingthe Licensee's accounts, r

6.7.1.4 for the prevention or detection of crime or the apprehension r prosecution ofoffenders or as may otherwise be authorised by or under any law of Pakistan.

Licensee shall be permitted o disclose nformation about a customer where he Licenseehas clearly explained o the customer a) the nature of the information to be disclosed, b)the recipients of the information o be disclosed and (c) the purpose or the disclosure,and the customer has provided Licensee with consent o such disclosure.

HARASSING, OFFENSIVE, UNSOLICITED OR IINLAWFUL COMMUNICATION

The Licensee shall take all reasonable teps o track and locate and prevent the source ofharassing, unsolicited, offensive, fraudulent or unlawful communication. For thatpurpose:

the

of

6. 6

6 . 6 . 1

6.6.2

6.7

6 .7 .1

6.7.2

6.8

6 .8 .1

8/10/2019 mvno_paper_160507 (1)

26/39

13 -

6.8.1.1 Any customer of the Licensee may request (the Requesting Customer) theAuthority or other duly authorized authority in Pakistan o authorize he Licenseeto monitor calls o the Requesting ustomer's mobile handset r device.

6.8.1.2 The Authority or other duly authorized authority in Pakistan may direct a

Licensee o monitor communication o and rom a customer's elephone.6.8.1.3 The Licensee shall provide to the Authority the information resulting from the

monitoring of the communication to and from a customer's telephone, ncludingthe identification number or details of the party or parties that are the source ofharassing, offensive fraudulent or unlawful communication and the dates ofoccurrence of such calls and their frequency; and

6.8.1.4 The Authority may direct the Licensee o undertake appropriate action to protectthe public from harassing, offensive, fraudulent or unlawful communication. Suchdirection may require the Licensee to co-operate fully with and/or providerelevant information to such other parties identified as being competentauthorities by the Authority in its direction.

6.8.1.5 The Licensee shall, at the request of the Authority, terminate service to anycustomer hat is the source of 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 isfree to set tadffs fot the License Services as t may deem fit

7.2 PUBLICATION OF TARIFFS, NOTIFICATIONS AND DISPLAY OFINFORMATION

7.2.1 The Licensee shall comply with all requirements egarding publication of prices, erms,and conditions, notifications and display of information, as established by the Authorityfrom time to time.

PART 8 RELATIONS WITH OPERATORS

8.1. BEHAVIOUR

8.1.1 The MVNO shall have good elationship ith his parent nd other operators n order omeet QoS requirement f PTA

8/10/2019 mvno_paper_160507 (1)

27/39

- 1 4 -

PART 9 INFRACTIONS AND SANCTIONS

9.1 SANCTIONS FOR VIOLATIONS OF THE LICENCE

9.I.1 If the Authority determines hat the Licensee has violated a provision of this Licence orthe Act, Rules or Regulations conditions of this License or any other orders orinstructions of the Authorities, the Authority may by order impose one or more sanctionsprovided in the Act, the Rules and Regulations ssued here under.

PART 10 TERMINATION AND AMENDMENT

10.1 TERMINATION OF THE LICENCE

10.1 1 The Licence shall remain n force until it is terminated by one of the following events:

10.1 1.1 The term of the Licence expires without renewal,

10. . .2 The Licensee grees o the termination of this Licence, or10.1.1.3 The Licence s suspended r terminated n accordance with the Act, Rules orRegulations, r the provisions of this Licence.

IO.2 AMENDMENT

10.2.1 This Licence may be amended by written agreement between the Licensee and theAuthority subject o the provisions of the Act, Rules and Regulations.

PART 11 GENERAL

11.1 ASSIGNMENT OF RIGHTS

11.1.1 The License granted underthe Act and Rules shall be personal o the licensee and shallnot be assigned, sub-licensed o, transfened directly or indirectly or held on trust for anyperson, without the prior written approval of the Authority and agreement of MNO.

II.2 OWNERSHIP AND CONTROL REPORTING

ll.2.l The Licensee shall notifr the Authority of the occurrence of any act, agreement ortransaction that to its knowledge, directly or indirectly, results in (a) acquisition by aperson or a group acting in common of more than 10 per cent of the Voting Interests of

the Licensee, or (b) disinvestment by a person or a group acting in common having director indirect control of 10 per cent or more of the Voting Interest of the Licensee, of thoseVoting Interest o any other person or group of persons.

11.2.2 The Licensee shall give the notification referred o in sub clause ll.2.I above to theAuthority on the later to occur of (a) one day after the date that the Licensee becomesaware of the act, agreement or transaction, or (b) 30 days prior to the completion of theact, agreement r transaction.

8/10/2019 mvno_paper_160507 (1)

28/39

- 15

11.2.3 For a period of one year following the Effective date, the Licensee shall take allnecessary teps o ensure hat no transaction described n sub clause I.2.I takes placeunless he prior consent of the Authority is obtained

11.3 NO LIABILITY BY THE AUTHORITY

11.3.1 No suit, prosecution or other legal proceeding shall lie against he Authority or anymember or employee of the Authority in respect of anything done or intended o be doneby the Authority in the good faith exercise of its powers subject o section 33 of the Act.

II.4 FORCE MAJEURE

11.4.1 Notwithstanding anything to the contrary contained n this License, f the Licensee shallbe rendered unable o carry out the whole or any part of its obligations under this Licensefor any reason beyond the control of the Licensee, ncluding but not limited, to acts ofGod, strikes, war, riots etc, then the performance of the obligations of the Licensee as t isaffected by such cause shall be excused during the continuance ofany inability so caused, provided that the Licensee has taken all appropriate precautions and reasonablemeasures o fulfil its obligation and that it shall within 14 days of its first occurrencenotify to the Authority the same and cause of such inability and its efforts to remove suchcause and remedy t's consequences.

1T.5 COMMUNICATION WITH THE LICENSEE

I 1.5.1 The Licensee shall maintain on file with the Authority a current address or the Licensee,including telephone number, fax number and email address, and the name and title of acontact person, for the pu{poses of receiving communications from the Authority. Anynotice or other communication o the Licensee permitted under this Licence may be givenby hand delivering the same, or by mail, facsimile, or electronic mail addressed o theLicensee at its most recent address on file with the Authority.

PART 12 INTERPRETATION AND DEFINITIONS

12.I INTERPRETATION

O U.l In this Licence, words mpor ting he singular shall nclude he plural and vice versa.

12.I.2 The headings n this Licence shall not affect ts interpretation.

12.1.3 Any reference, express or implied, to any legislation (including rules and regulationsissued pursuant to that legislation) includes references o that legislation (and rules andregulations) as t may be amended or modified from time to time.

12.2 DEFINITIONS

12.2.1 The words and expressions sed herein but not defined shall have the same meaning asare respectively assigned o them in the Act, the Rules and Regulations and Licenses

8/10/2019 mvno_paper_160507 (1)

29/39

16 -

issued hereunder. Unless he context otherwise equires, he following terms used n thisLicence shall have he meanings ndicated below:

(Act means The Pakistan Telecommunication Re-organization) Act 1996.

Authority means he Pakistan Telecommunication Authority established under section3 of the Act.

Basic Public Telephone Access Service means a Telecommunications Servicethrough Parent MNO providing access o the PSTN and comprised of technical featureswhich permit the establishing of a telephony channel capable of allowing users o makeand receive ocal, long distance and ntemational real time voice telephone calls.

Board means he Frequency Allocation Board.

Control means control in any manner hat results n control in fact of more than 10%or more, whether directly through ownership of shares or indirectly through anagreement, arrangement or otherwise, or indirectly through an agreement or arrangementinvolving next of kin.

6'Effective Date means the date on which this Licence is issued by the Authority andappearing on the first page of this Licence, which date may be 30 days after the Authorityreceives rom the Licensee ll initial fees described n sub clause 4.l.l.L

ttFederal Government means he Federal Government f Pakistan.

Financial Year means the period of twelve (12) months in respect of whichLicensee is required to make up its Annual Report and Audited Accounts under

Companies Ordinance, 984.

Freephone Service means the service of routing a telephone call with a non-geographic number to a hidden geographic or mobile number, with no charge to thecalling party.

(6ITU means he Intemational Telecommunications Union.

Licence means this Licence, the terms and conditions applicable thereto, and anyamendments hereto.

LicensedServices'n means he Mandatory Services and he Optional Services.

Licensed System means he Telecommunication Systems which are in existence andoperational or installed or otherwise provided, maintained and/or operated by theLicensee hrough Parent MNO now and at any time and from time to time for the purposeof providing Licensed Services y whatever means.

thethe

8/10/2019 mvno_paper_160507 (1)

30/39

1 7 -

Long Distance means end o end communication etween oints that are (i) located ndifferent Regions or (ii) such other distance apart as the Authority may by Regulationsspecify and the same s applicable hrough Parent MNO.

Long Distance and International Licensee means a Licensee icensed o offer end oend communication between points

that are (i) located n different Region or (ii) locatedin Pakistan and outside of Pakistan or (iii) such other distance apart as the Authority mayby Regulations, specify and the same s applicable hrough parent MNo.

Mandatory Services means he Telecommunications Services hat the Licensee mustprovide under his Licence, and which are described n sub clause1.1.2 f the License.

Mobile Communications Service means a wireless-based TelecommunicationsService where the Terminal Equipment may be connected o the TelecommunicationsSystem by wireless means and used while in motion.

('Mobile Numbering Portability means a facility provided by any licensed provider ofMobile Services o another which enables any User to whom a telephone number hasbeen assigned o continue to be provided with Mobile Services using the same numberirrespective of the identity of the service provider providing the service;

Mobile Virtual Network Operator (MVNO)' means a person who has no license ooperate a mobile Telecommunication Network and no frequency assignments but whowill provide Mobile Services to his own users by means of entering into arrangementswith a Licensed Operator of a mobile Telecommunications Network for the provision tohim of capacity and facilities on that network.

Mobile Network Operator(MNO) means a company who has the license to provideMobile Licensed Telecom services within Pakistan s per clause 1.1

National Numbering Scheme means he scheme dministered y the Authority whichsets out the sequence of numbers or other characters which shall be used to routetelephony raffic to specific ocations;

Network Connection Point is a location at which other Operators can send to orreceive from the Licensee voice or data traffrc originated by or destined for theLicensee' s customers hrough parent operator.

Network Termination Point means any point or node forming part of LicensedSystem o which users may connect o the Licensed System by means of a wireless linkand Public Telecommunication Network and are necessary at which Terminal Equipmentmay be connected hrough parent operator.

Operator means any person authorized by a licence issued by the Authority toprovide Telecommunication Services or to establish, maintain and operate aTelecommunication System through parent op erutor.

8/10/2019 mvno_paper_160507 (1)

31/39

- 1 8

Parent MNO means the Mobil Network Operator with which licensee will havecommercial agreement for the provision mobile communication services on itstelecommunication System

Premium Rate Service means he service of routing a telephone calls with a non-geographic number to a hidden geographic or mobile number,

with apremium

ratecharge o the calling party through Parent MNO.

o'Public Mobile Payphone Services means he commercial provision to the public ofmobile Public Telephone Access Services hrough Parent MNO.

Region means a telecommunications administrative region, as determined by theAuthority.

Regulations means all or any regulations ssued rom 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 means a service consisting n the emission, conveyance,switching or reception of any intelligence within, or into, or from, Pakistan by anyelectrical, electro-magnetic, lectronic, optical or optio-electronic ystem, whether or notthe intelligence is subjected o re-arrangement, omputation or any other process n thecourse of the service hrough Parent MNO.

Terminal Equipment means equipment which is directly or indirectly connected oany Network Termination Point and which is used directly by users in order to accessTelecommunications ervices.

'USO means universal service obligation as defined in any Regulations issued by theAuthority from time to time;

o'Voting Interest means, n respect f

(a) a corporation with share capital, means he vote attached o a voting share,

(b) a corporation without share capital, means an interest that entitles the owner to votingrights similar to those enjoyed by the owner of a voting share,

(c) a partnership, a trust, an association or a joint venture, means an ownership interest nthe assets of it that entitles the owner to receive a share of the profits of it, to receive ashare of the assets of it on dissolution and to participate directly in the management of it orto vote on the election of the persons o be entrusted with the power and responsibility tomanage t, and

(d) a not-for-profit partnership, rust, association or joint venture, means a right that entitlesthe owner to participate directly in the management of it or to vote on the election of thepersons o be entrusted with the power and responsibility to manage t.

8/10/2019 mvno_paper_160507 (1)

32/39

l . i

1 .2

1 at 1

APPENDIX 1

QUALITY OF SERVICE STANDARDS

The Licensee shall take reasonable and prudent measures o ensure hat the LicensedSystem and Licensed Services are available and operate properly at all times.

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

During each calendar month, Licensee shall meet or exceed he following quality ofservice standards (except for causes attributable to another Operator or a serviceprovider that provides elecommunications services outside Pakistan)

I Network Down-time (Average across all sites) mentioned in MCP-MoIT and is opposite of what was previously mentioned asNetwork Operability in the QoS document released by PTA'Cell-site Down-time (for each site) mentioned n MCP -MoIT and is same as what was previously mentioned as CommunityIsolation n the QoS document eleased y PTA except or the valuesI Call Connection Time mentioned n MCP-MoIT and is same as what was previously mentioned as post Dialling Delay in theQoS document released by PTAa Call Completion Ratio mentioned n MCP-MoIT and s same as what was previously mentioned as Service Reatinability n theQoS document eleased y PTA except or the values

Indicators

Minimum target

Remarkshort term( 3 vears)

Long term(3 vears on)

Service ProvisioningService Activation Time

Post-Paid 2hrs. thr.Pre-paid lhr. 30 min.

Service Quality

Network Down-time (Averageacross all sites)r

< 2 Yo i n a n ycalendar month< 1o/o ver a I

rolling yearperiod

< 17oover a I monthperiod

This relates to the percentage oftime network is operating.The objective is to ensure

maximum operability of networkto the consumers.

Grade of Service (end to endblockins)

8/10/2019 mvno_paper_160507 (1)

33/39

enhancements, updates orupgrades are o be performed.

CallQuali tys MOS6 Score > 3 MOS Score > 3

This is derived ro a scale of l-5,where I stands for poor qualityand 5 for excellent.Voice quality is determinedthrough Mean Opinion Scoremethodology as recommended yITU-T in recommendationnumber P.800.

IndicatorsBench Mark

Remarkshort term( 3 vears)

Long term(3 vears on)

Customer's Complaints

Customer Complaints/l00Subscribers/ Month

Comolaints esardins illins

8/10/2019 mvno_paper_160507 (1)

34/39

o

Operator Assistance ResponseTime Within 30sec.

>=96oh >:98 %oThere should be a queuing systemfor all operator attended alls i.e.,no call should receive a busysignal; rather each call is queuedand maximum calls (as shown inthe given benchmark) should beanswered within 30 seconds.

Customer ComplaintResponse ime

Within 30sec.>:96%o >=98 o/o

Directory AssistanceResponse ime

Within30sec.>=98oh

Calls to Emergency NumbersHandled

Within 30 Seconds>98Yo 100%

Directorv Assistance

Updated Directory Assistance

Provisioningof redirect

mechanism oPTCL

directory

Provisioning fupdated irectory

assistance

Cellular operators are currentlynot providing directory assistanceto their subscribers. As cellularoperators ave a relatively smallernetwork, the provisioning ofdirectory service is not proposedfor them in the short term.However we propose hat all thecellular operators should provideredirect service mechanism foraccessing PTCL directoryassistance o their subscribers. nthe long-term period, they arerequired to provide their owndirectorv assistance ervice

Network Management &

SecuritvVoice Security duringConnection

Yes

Personal nformation Securiff YesProvisioning of CentralizedCustomer Complaint Database

Yes

Provisioning of ComputerizedDirectorv Access Svstem

Yes

Probability of Fraud on lJser'sAccount

NoOperator should demonstrate toPTA that fraud controlledorocedures re n olace.

8/10/2019 mvno_paper_160507 (1)

35/39

Annn

8/10/2019 mvno_paper_160507 (1)

36/39

k{rn GOVERNMENT OF PAKISTANPAKISTAN TELECOMMUNICATION AUTHORITYHEADQUARTERS F 5[I, ISLAMABADhttp: / www.pta. gov.pkAPPLICANT PROFILE1

(To be submitted with the application form)

l. Company details

I .l Name of company

1.2 Postal address

Telephone: Fax: Email:

Telephone: Fax: Email:

2. Contact Information

Designation:

terized National Identity Card

Telephone: Fax: Email

Cell Phone No: P r < < n n r r N l n l F n r e i - n o r q n n l r z \ v , L L J t

t At any ime in future, f any of the above mentioned nformation changes, he applicant's officialrepresentative(s) entioned above or any one of the shareholder irector will be liable o submit he sameto PTA licensins division.

2.2

^ az . J

2.1 Name of contact

Page 2 of 5 CMVNO FORM-B

8/10/2019 mvno_paper_160507 (1)

37/39

to be filled b

M/s

Application Form

[ , certify that I am the authorized epresentative of

, hereinafter alled The Company', and s legally authorized o sign

for and on behalf of The Company and that all the statements made are true and correct

to the best of my knowledge.

On behalf of the company would like to applyfor Class MVNO service License.I have completed all prerequisites.I understand that the submission of this proposal does not automatically qualify my

company or award of a Class MVNO Service license by Pakistan TelecommunicationAuthority.

Postal address

I.2.3.

Full Name ( comma after every

Telephone in Company's name):

Email:

Fax:

Dateignature:

Name:

CMVNO fee (l.0) doc-C

8/10/2019 mvno_paper_160507 (1)

38/39

8/10/2019 mvno_paper_160507 (1)

39/39

1) Fees

a) Initial License FeeThe Licensee shall pay the initial license ee to the Authority as given in the table onpage (4) of this document) prior to the Effective Date or as modified throughregulations rom 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's annual gross revenue rom Licensed Services minusinter-Operator payments and parent MNO related payments as annual licensefee.. However initial License ee, collection of charges, enalties mposed byPTA, if any, and leased line charges shall not be deducted from the grossrevenue;

ii) The Licensee shall contribute Universal Service Fund to the Authority, anamount equivalent o 1.5 oh of the Licensee's annual gross revenue fromLicensed Services minus inter-operator ayment and related Parent operator(IvINO)mandated ayments. However, nitial License ee, collection charges,penalties mposed by PTA, if any and lease ine charges shall not be deductedfrom the gross evenue;

iii) The Licensee hall contribute an amount equivalent o 0.5 o/oof the Licensee'sannual gross revenue from Licensed Services minus inter-operator paymentand related Parent operator (tvINO) mandated payments o the Research and

Development Fund. However,nitial License ee, collection charges, enalties

imposed by PTA, if any and lease ine charges shall not be deducted rom thegross evenue. or the most recently completed Financial Year; and

iv) In addition to any other remedies available to the Authority, late payment feeshall incur an additional fee calculated at the rate of 2%o per month on theoutstanding amount, or every day or part thereof from the due date until paid.

c) OtherIn addition to the fees payable hereunder, he Licensee shall pay to the Authority allfees required to be paid under the Act, Rules and Regulations-

2) Payment Mode

a) The fee(s) may be deposited n the PTA Collection Account maintained withNational Bank of Pakistan, slamabad.

b) The Licensee may also pay through crossed Cheque, Pay order or Bank draftdrawn in favor of Pakistan Telecommunication Authority.

c) The Fee(s) may also be remitted through Telegraphic Transfer or any otherelectronic mode under ntimation to Director Licensing.