PTA Orders PTML To Halt ONIC Operations Over MVNO Non-Compliance.

The Pakistan Telecommunication Authority (PTA) has directed Pak Telecom Mobile Limited (PTML), the operator of Ufone, to immediately stop new sales, activations, SIM and eSIM issuance, subscriptions, marketing and other commercial activities of its ONIC digital telecom service over alleged non-compliance with the country’s Mobile Virtual Network Operator (MVNO) framework.

The regulator determined that ONIC’s existing operating structure goes beyond that of a conventional brand owned by a licensed mobile network operator. Although PTML owns the ONIC brand and provides its network, spectrum and numbering resources, the service operates through separate commercial and digital arrangements.

According to the PTA, ONIC has customised packages, separate customer relationship management and billing systems, dedicated digital platforms and independent customer-care functions. The regulator also noted that DTMS, a separate entity, performs key activities including marketing, customer acquisition, know-your-customer processes, SIM logistics, sales and customer support.

The PTA further examined the revenue-sharing arrangement between PTML and DTMS under a Build-Operate Services Agreement. DTMS reportedly receives 55% of relevant revenue during the first three years, with its share declining under the agreed schedule.

Based on these operational and financial arrangements, the authority concluded that ONIC possesses the characteristics of an MVNO under the MVNO Policy Framework 2025 and requires regulatory regularisation.

To protect existing customers from disruption, the PTA has allowed PTML three months to migrate or transfer ONIC subscribers to PTML. The regulator clarified that this period is only for customer migration and does not authorise continued new sales or commercial expansion of ONIC.

PTML has also been ordered to submit a comprehensive compliance report within seven working days of receiving the decision. The report must confirm that the activities covered by the order have been stopped and outline the measures taken to comply.

The authority identified additional concerns involving customer data, SIM issuance, KYC procedures, lawful interception, data localisation, security, quality of service, disaster recovery, business continuity, mobile number portability and third-party arrangements.

PTML may either restructure ONIC so that it clearly operates as a PTML brand or seek the required MVNO licence if it intends to retain ONIC’s current independent operating model. The PTA said any future continuation of ONIC in its existing form would require the necessary regulatory authorisation.