PTA orders halt to new ONIC sales, activations

Existing customers get three months for migration; PTML must restructure ONIC under its MNO licence or secure an MVNO licence to retain current model The Pakistan Telecommunication Authority (PTA) has ordered Pak Telecom Mobile Limited (PTML), the operator of Ufone, to immediately stop new sales, activations, SIM and eSIM issuance, subscriptions and marketing of ONIC after determining that its existing model falls under the Mobile Virtual Network Operator (MVNO) framework, Business Recorder reported. Existing ONIC customers will, however, be given three months from receipt of the order to be migrated or transferred to PTML. The PTA clarified that this window is exclusively for existing customers and does not allow ONIC to continue new commercial operations. The decision leaves PTML with two options if it wants to continue ONIC. It can restructure ONIC as a clear PTML product or brand operating entirely under its existing Mobile Network Operator licence, removing features that give it the characteristics of an independently operated MVNO. Alternatively, if it wants to retain the current structure, the relevant company will have to obtain an MVNO licence. The PTA reached its decision after examining ONIC's operational and commercial arrangements. While PTML owns the ONIC brand and retains its network, spectrum and numbering resources, the regulator found that the service operates substantially beyond a conventional branding arrangement. ONIC has customised packages, separate CRM and billing systems and dedicated digital and customer-care platforms. A separate entity, DTMS, also performs significant functions including marketing, customer acquisition, KYC-related processes, SIM logistics, sales and customer services. The commercial arrangement with DTMS was another factor in the regulator's assessment. Under the Build-Operate Services Agreement (BOSA), DTMS receives 55% of relevant revenue during the first three years, with its share declining subsequently under an agreed schedule. The PTA said these characteristics collectively bring ONIC within the MVNO Policy Framework 2025, despite PTML retaining ownership of the brand and underlying telecom infrastructure. The regulator also identified concerns involving SIM issuance and KYC, customer and subscriber information, billing, lawful interception, data localisation and security, quality of service, disaster recovery, business continuity and third-party arrangements. It noted that independent verification of disaster recovery and high-availability testing, RTO/RPO requirements and SLA performance had not been fully demonstrated, while some arrangements involving DTMS had not been completely placed before the Authority. PTML has been directed to submit a comprehensive compliance report within seven working days of receiving the order, confirming the cessation of ONIC operations covered by the decision and detailing the measures taken to comply. The dispute dates back to June 2023, when PTML informed the PTA about plans to launch ONIC as an app-based digital product targeting consumers initially in Karachi, Lahore, Islamabad, Rawalpindi and Faisalabad. The regulator subsequently raised concerns that ONIC's presentation could give consumers the impression that it was an independent company rather than a service linked to a licensed cellular operator. In August 2023, PTA directed PTML not to launch ONIC until complete information had been provided and evaluated. PTML challenged the direction before the Islamabad High Court, which in February 2026 converted the petition into a representation and sent the matter back to PTA for a reasoned decision. PTML maintained that ONIC was simply its digital brand and that its agreement with DTMS was an outsourcing and managed-services arrangement. PTA rejected that position based on the substance of the commercial and operational structure. The decision comes after the federal government's MVNO Policy Framework 2025 replaced the earlier 2006 guidelines and reduced the initial national MVNO licence fee to $140,000 from the $5 million initial fee prescribed under the 2012 regulations.