The Pakistan Telecommunication Authority (PTA) has ordered Pak Telecom Mobile Limited (PTML) to immediately halt new sales, activations, SIM and eSIM issuance, subscriptions, marketing and commercial operations of its ONIC digital telecom service.
According to reports, the authority, in a major regulatory decision, ruled that the service falls within the Mobile Virtual Network Operator (MVNO) framework, and directed PTML, which operates Ufone, to discontinue ONIC in its existing form.
While it held that the service could not continue without proper regulatory authorisation and compliance with the applicable MVNO framework, to protect existing subscribers from disruption, the PTA gave PTML three months from receipt of the order to migrate existing ONIC customers to PTML.
The regulator announced the decision following a hearing, disposing of PTML’s representation regarding the launch and operation of ONIC.
The PTA found that although ONIC was a registered PTML brand and used PTML’s network, spectrum and numbering resources with its operational structure going well beyond a conventional brand arrangement.
According to the Authority, ONIC functions as a distinct digital-first proposition with customised packages, separate CRM and billing systems, and dedicated digital and customer-care platforms. A separate entity, DTMS, performs significant customer-facing and commercial functions for the service.
The regulator noted that DTMS handles marketing, customer acquisition, KYC-related processes, SIM logistics, sales and customer services and operates the customer-facing digital platform.
The PTA also flagged a revenue-sharing arrangement under the Build-Operate Services Agreement (BOSA), under which DTMS receives 55 percent of relevant revenue during the initial three years, with its share declining afterward, according to the agreed schedule.
The Authority said these features together show that ONIC carries the essential characteristics defined under the MVNO Policy Framework 2025, regardless of PTML’s ownership of the brand and its retention of the underlying licensed network.
The PTA said that the existing arrangement could not be treated as fully regularised simply because PTML retains the brand, network, spectrum, numbering resources and ultimate regulatory responsibility.
It also raised concerns over customer management, SIM issuance and KYC, billing and CRM, access to subscriber information and call-detail records, lawful interception, data localisation and security, quality of service, disaster recovery, business continuity, mobile number portability and third-party arrangements.
Under the decision, PTML now has two regulatory options.
It can restructure ONIC as a straightforward PTML product operating within PTML’s existing mobile network operator licence, removing the features that make it function as an independently operated MVNO.
Alternatively, if PTML wants to keep the current MVNO-type structure, it must obtain the required MVNO licence under the applicable regulatory framework.
