diff --git a/apps/carrier-connector/internal/rateplan/pricing_engine.go b/apps/carrier-connector/internal/rateplan/pricing_engine.go
new file mode 100644
index 0000000..f212433
--- /dev/null
+++ b/apps/carrier-connector/internal/rateplan/pricing_engine.go
@@ -0,0 +1,468 @@
+package rateplan
+
+import (
+	"context"
+	"fmt"
+	"time"
+)
+
+// PricingEngine handles rate plan pricing calculations and validations
+type PricingEngine struct {
+	repo   Repository
+	logger Logger
+}
+
+// Logger interface for pricing engine
+type Logger interface {
+	WithError(err error) Logger
+	WithField(key string, value interface{}) Logger
+	Error(msg string)
+	Info(msg string)
+	Warning(msg string)
+}
+
+// NewPricingEngine creates a new pricing engine
+func NewPricingEngine(repo Repository, logger Logger) *PricingEngine {
+	return &PricingEngine{
+		repo:   repo,
+		logger: logger,
+	}
+}
+
+// ValidateRatePlan performs comprehensive validation of a rate plan
+func (pe *PricingEngine) ValidateRatePlan(ctx context.Context, plan *RatePlan) error {
+	// Basic field validation
+	if err := pe.validateBasicFields(plan); err != nil {
+		return err
+	}
+
+	// Validate dates
+	if err := pe.validateDates(plan); err != nil {
+		return err
+	}
+
+	// Validate allowances
+	if err := pe.validateAllowances(plan); err != nil {
+		return err
+	}
+
+	// Validate overage rates
+	if err := pe.validateOverageRates(plan); err != nil {
+		return err
+	}
+
+	// Validate discounts
+	if err := pe.validateDiscounts(plan); err != nil {
+		return err
+	}
+
+	// Validate early termination
+	if err := pe.validateEarlyTermination(plan); err != nil {
+		return err
+	}
+
+	return nil
+}
+
+// CalculateOptimalPrice calculates the optimal price for a rate plan based on market conditions
+func (pe *PricingEngine) CalculateOptimalPrice(ctx context.Context, plan *RatePlan) (*PriceOptimization, error) {
+	// Get similar plans in the same region
+	filter := &RatePlanFilter{
+		Region:    plan.Region,
+		PlanType:  plan.PlanType,
+		Status:    PlanStatusActive,
+		IsActive:  &[]bool{true}[0],
+		Limit:     10,
+	}
+
+	similarPlans, err := pe.repo.ListRatePlans(ctx, filter)
+	if err != nil {
+		return nil, fmt.Errorf("failed to get similar plans: %w", err)
+	}
+
+	// Calculate market average
+	var totalBasePrice float64
+	for _, similarPlan := range similarPlans {
+		totalBasePrice += similarPlan.BasePrice
+	}
+
+	var marketAverage float64
+	if len(similarPlans) > 0 {
+		marketAverage = totalBasePrice / float64(len(similarPlans))
+	}
+
+	// Calculate recommended price
+	recommendedPrice := pe.calculateRecommendedPrice(plan, marketAverage)
+
+	optimization := &PriceOptimization{
+		CurrentPrice:     plan.BasePrice,
+		MarketAverage:    marketAverage,
+		RecommendedPrice: recommendedPrice,
+		PriceDifference:  recommendedPrice - plan.BasePrice,
+		CompetitorCount:  len(similarPlans),
+		OptimizedAt:      time.Now(),
+	}
+
+	return optimization, nil
+}
+
+// ValidateSubscription validates a subscription request
+func (pe *PricingEngine) ValidateSubscription(ctx context.Context, req *SubscribeRequest) error {
+	// Get the rate plan
+	plan, err := pe.repo.GetRatePlan(ctx, req.RatePlanID)
+	if err != nil {
+		return fmt.Errorf("rate plan not found: %w", err)
+	}
+
+	// Check if plan is available for subscription
+	if !plan.IsActive || plan.Status != PlanStatusActive {
+		return fmt.Errorf("rate plan is not available for subscription")
+	}
+
+	// Check validity dates
+	now := time.Now()
+	if now.Before(plan.ValidFrom) {
+		return fmt.Errorf("rate plan is not yet available")
+	}
+
+	if plan.ValidTo != nil && now.After(*plan.ValidTo) {
+		return fmt.Errorf("rate plan has expired")
+	}
+
+	// Validate discounts
+	if len(req.AppliedDiscounts) > 0 {
+		if err := pe.validateSubscriptionDiscounts(plan, req.AppliedDiscounts); err != nil {
+			return err
+		}
+	}
+
+	return nil
+}
+
+// CalculateSubscriptionCost calculates the total cost for a subscription
+func (pe *PricingEngine) CalculateSubscriptionCost(ctx context.Context, req *CalculateCostRequest) (*CostBreakdown, error) {
+	// Get the rate plan
+	plan, err := pe.repo.GetRatePlan(ctx, req.RatePlanID)
+	if err != nil {
+		return nil, fmt.Errorf("rate plan not found: %w", err)
+	}
+
+	breakdown := &CostBreakdown{
+		RatePlanID:     req.RatePlanID,
+		Currency:       plan.Currency,
+		CalculatedAt:   time.Now(),
+		BreakdownItems: []CostItem{},
+	}
+
+	// Base cost
+	baseCost := plan.BasePrice
+	breakdown.BreakdownItems = append(breakdown.BreakdownItems, CostItem{
+		Type:        "base_price",
+		Description: "Base subscription cost",
+		Amount:      baseCost,
+		Currency:    plan.Currency,
+	})
+
+	// Calculate data overage
+	dataOverageCost := pe.calculateDataOverage(plan, req.DataUsed)
+	if dataOverageCost > 0 {
+		breakdown.BreakdownItems = append(breakdown.BreakdownItems, CostItem{
+			Type:        "data_overage",
+			Description: "Data usage over allowance",
+			Amount:      dataOverageCost,
+			Currency:    plan.Currency,
+		})
+	}
+
+	// Calculate voice overage
+	voiceOverageCost := pe.calculateVoiceOverage(plan, req.VoiceUsed)
+	if voiceOverageCost > 0 {
+		breakdown.BreakdownItems = append(breakdown.BreakdownItems, CostItem{
+			Type:        "voice_overage",
+			Description: "Voice usage over allowance",
+			Amount:      voiceOverageCost,
+			Currency:    plan.Currency,
+		})
+	}
+
+	// Calculate SMS overage
+	smsOverageCost := pe.calculateSMSOverage(plan, req.SMSUsed)
+	if smsOverageCost > 0 {
+		breakdown.BreakdownItems = append(breakdown.BreakdownItems, CostItem{
+			Type:        "sms_overage",
+			Description: "SMS usage over allowance",
+			Amount:      smsOverageCost,
+			Currency:    plan.Currency,
+		})
+	}
+
+	// Apply discounts
+	discountAmount := pe.calculateDiscounts(plan, req.AppliedDiscounts, baseCost)
+	if discountAmount > 0 {
+		breakdown.BreakdownItems = append(breakdown.BreakdownItems, CostItem{
+			Type:        "discount",
+			Description: "Applied discounts",
+			Amount:      -discountAmount,
+			Currency:    plan.Currency,
+		})
+	}
+
+	// Calculate total
+	totalCost := baseCost + dataOverageCost + voiceOverageCost + smsOverageCost - discountAmount
+	breakdown.TotalCost = totalCost
+	breakdown.Subtotal = baseCost + dataOverageCost + voiceOverageCost + smsOverageCost
+	breakdown.DiscountTotal = discountAmount
+
+	return breakdown, nil
+}
+
+// Helper methods
+
+func (pe *PricingEngine) validateBasicFields(plan *RatePlan) error {
+	if plan.Name == "" {
+		return fmt.Errorf("rate plan name is required")
+	}
+	if plan.CarrierID == "" {
+		return fmt.Errorf("carrier ID is required")
+	}
+	if plan.Region == "" {
+		return fmt.Errorf("region is required")
+	}
+	if plan.BasePrice < 0 {
+		return fmt.Errorf("base price cannot be negative")
+	}
+	if plan.Currency == "" {
+		return fmt.Errorf("currency is required")
+	}
+	if plan.BillingCycle == "" {
+		return fmt.Errorf("billing cycle is required")
+	}
+	return nil
+}
+
+func (pe *PricingEngine) validateDates(plan *RatePlan) error {
+	if plan.ValidFrom.IsZero() {
+		return fmt.Errorf("valid from date is required")
+	}
+
+	now := time.Now()
+	if plan.ValidFrom.After(now) {
+		pe.logger.Warning("Rate plan valid from date is in the future")
+	}
+
+	if plan.ValidTo != nil && plan.ValidTo.Before(plan.ValidFrom) {
+		return fmt.Errorf("valid to date cannot be before valid from date")
+	}
+
+	return nil
+}
+
+func (pe *PricingEngine) validateAllowances(plan *RatePlan) error {
+	// Validate data allowance
+	if plan.DataAllowance != nil {
+		if plan.DataAllowance.Amount <= 0 && !plan.DataAllowance.Unlimited {
+			return fmt.Errorf("data allowance amount must be positive or unlimited")
+		}
+		if plan.DataAllowance.Unit == "" {
+			return fmt.Errorf("data allowance unit is required")
+		}
+	}
+
+	// Validate voice allowance
+	if plan.VoiceAllowance != nil {
+		if plan.VoiceAllowance.Minutes <= 0 && !plan.VoiceAllowance.Unlimited {
+			return fmt.Errorf("voice allowance minutes must be positive or unlimited")
+		}
+	}
+
+	// Validate SMS allowance
+	if plan.SMSAllowance != nil {
+		if plan.SMSAllowance.Messages <= 0 && !plan.SMSAllowance.Unlimited {
+			return fmt.Errorf("SMS allowance messages must be positive or unlimited")
+		}
+	}
+
+	return nil
+}
+
+func (pe *PricingEngine) validateOverageRates(plan *RatePlan) error {
+	if plan.OverageRates != nil {
+		if plan.OverageRates.DataRate < 0 {
+			return fmt.Errorf("data overage rate cannot be negative")
+		}
+		if plan.OverageRates.VoiceRate < 0 {
+			return fmt.Errorf("voice overage rate cannot be negative")
+		}
+		if plan.OverageRates.SMSRate < 0 {
+			return fmt.Errorf("SMS overage rate cannot be negative")
+		}
+		if plan.OverageRates.Currency == "" {
+			return fmt.Errorf("overage rates currency is required")
+		}
+	}
+	return nil
+}
+
+func (pe *PricingEngine) validateDiscounts(plan *RatePlan) error {
+	if plan.Discounts != nil {
+		for _, discount := range plan.Discounts {
+			if discount.Name == "" {
+				return fmt.Errorf("discount name is required")
+			}
+			if discount.Value <= 0 {
+				return fmt.Errorf("discount value must be positive")
+			}
+			if discount.ValidFrom.IsZero() {
+				return fmt.Errorf("discount valid from date is required")
+			}
+			if discount.ValidTo != nil && discount.ValidTo.Before(discount.ValidFrom) {
+				return fmt.Errorf("discount valid to date cannot be before valid from date")
+			}
+		}
+	}
+	return nil
+}
+
+func (pe *PricingEngine) validateEarlyTermination(plan *RatePlan) error {
+	if plan.EarlyTermination != nil && plan.EarlyTermination.Enabled {
+		if plan.EarlyTermination.FeeType == "" {
+			return fmt.Errorf("early termination fee type is required")
+		}
+		if plan.EarlyTermination.FeeType == "fixed" && plan.EarlyTermination.FeeAmount <= 0 {
+			return fmt.Errorf("early termination fee amount must be positive for fixed fee type")
+		}
+		if plan.EarlyTermination.FeeType == "percentage" && (plan.EarlyTermination.FeePercentage <= 0 || plan.EarlyTermination.FeePercentage > 100) {
+			return fmt.Errorf("early termination fee percentage must be between 0 and 100")
+		}
+	}
+	return nil
+}
+
+func (pe *PricingEngine) calculateRecommendedPrice(plan *RatePlan, marketAverage float64) float64 {
+	// Basic pricing strategy: position slightly below market average for competitive advantage
+	if marketAverage > 0 {
+		return marketAverage * 0.95 // 5% below market average
+	}
+	return plan.BasePrice
+}
+
+func (pe *PricingEngine) validateSubscriptionDiscounts(plan *RatePlan, discountIDs []string) error {
+	if plan.Discounts == nil {
+		return fmt.Errorf("no discounts available for this rate plan")
+	}
+
+	for _, discountID := range discountIDs {
+		found := false
+		for _, discount := range plan.Discounts {
+			if discount.ID == discountID {
+				if !discount.IsActive {
+					return fmt.Errorf("discount %s is not active", discountID)
+				}
+				now := time.Now()
+				if now.Before(discount.ValidFrom) || (discount.ValidTo != nil && now.After(*discount.ValidTo)) {
+					return fmt.Errorf("discount %s is not currently valid", discountID)
+				}
+				found = true
+				break
+			}
+		}
+		if !found {
+			return fmt.Errorf("discount %s not found", discountID)
+		}
+	}
+
+	return nil
+}
+
+func (pe *PricingEngine) calculateDataOverage(plan *RatePlan, dataUsed int64) float64 {
+	if plan.DataAllowance == nil || plan.DataAllowance.Unlimited || plan.OverageRates == nil {
+		return 0
+	}
+
+	allowanceMB := plan.DataAllowance.Amount
+	if plan.DataAllowance.Unit == "GB" {
+		allowanceMB *= 1024
+	}
+
+	if dataUsed <= allowanceMB {
+		return 0
+	}
+
+	overageMB := dataUsed - allowanceMB
+	return float64(overageMB) * plan.OverageRates.DataRate
+}
+
+func (pe *PricingEngine) calculateVoiceOverage(plan *RatePlan, voiceUsed int64) float64 {
+	if plan.VoiceAllowance == nil || plan.VoiceAllowance.Unlimited || plan.OverageRates == nil {
+		return 0
+	}
+
+	if voiceUsed <= plan.VoiceAllowance.Minutes {
+		return 0
+	}
+
+	overageMinutes := voiceUsed - plan.VoiceAllowance.Minutes
+	return float64(overageMinutes) * plan.OverageRates.VoiceRate
+}
+
+func (pe *PricingEngine) calculateSMSOverage(plan *RatePlan, smsUsed int64) float64 {
+	if plan.SMSAllowance == nil || plan.SMSAllowance.Unlimited || plan.OverageRates == nil {
+		return 0
+	}
+
+	if smsUsed <= plan.SMSAllowance.Messages {
+		return 0
+	}
+
+	overageSMS := smsUsed - plan.SMSAllowance.Messages
+	return float64(overageSMS) * plan.OverageRates.SMSRate
+}
+
+func (pe *PricingEngine) calculateDiscounts(plan *RatePlan, discountIDs []string, baseCost float64) float64 {
+	if plan.Discounts == nil || len(discountIDs) == 0 {
+		return 0
+	}
+
+	totalDiscount := 0.0
+	for _, discountID := range discountIDs {
+		for _, discount := range plan.Discounts {
+			if discount.ID == discountID && discount.IsActive {
+				if discount.Type == DiscountTypePercentage {
+					totalDiscount += baseCost * discount.Value / 100
+				} else if discount.Type == DiscountTypeFixed {
+					totalDiscount += discount.Value
+				}
+			}
+		}
+	}
+
+	return totalDiscount
+}
+
+// Supporting types
+
+type PriceOptimization struct {
+	CurrentPrice     float64   `json:"current_price"`
+	MarketAverage    float64   `json:"market_average"`
+	RecommendedPrice float64   `json:"recommended_price"`
+	PriceDifference  float64   `json:"price_difference"`
+	CompetitorCount  int       `json:"competitor_count"`
+	OptimizedAt      time.Time `json:"optimized_at"`
+}
+
+type CostBreakdown struct {
+	RatePlanID     string     `json:"rate_plan_id"`
+	Currency       string     `json:"currency"`
+	TotalCost      float64    `json:"total_cost"`
+	Subtotal       float64    `json:"subtotal"`
+	DiscountTotal  float64    `json:"discount_total"`
+	BreakdownItems []CostItem `json:"breakdown_items"`
+	CalculatedAt   time.Time  `json:"calculated_at"`
+}
+
+type CostItem struct {
+	Type        string  `json:"type"`
+	Description string  `json:"description"`
+	Amount      float64 `json:"amount"`
+	Currency    string  `json:"currency"`
+}