The Pakistan Telecommunication Authority (PTA) has ordered Pak Telecom Mobile Limited (PTML) to immediately stop new sales, activations, SIM and eSIM issuance, subscriptions, marketing, and other commercial operations of ONIC, ruling that the digital telecom service falls within Pakistan’s Mobile Virtual Network Operator (MVNO) framework.

The order follows a hearing on PTML’s representation over ONIC’s launch and operating structure. PTA concluded that the service cannot continue in its current form without the required regulatory authorization.

To protect existing users from disruption, PTA has allowed PTML a three-month period solely to migrate current ONIC subscribers to PTML. The regulator made clear that this does not amount to permission for ONIC to continue new commercial operations during the transition.

PTA Says ONIC Operates Beyond a Conventional Brand

PTML had maintained that ONIC was simply a digital brand operating under its existing mobile network operator license. PTA, however, found that ONIC’s structure goes well beyond a typical branding arrangement.

According to the regulator, ONIC operates with customized packages, separate customer relationship management and billing systems, dedicated digital and customer-care platforms, and a separate commercial structure involving DTMS.

PTA said DTMS is involved in marketing, customer acquisition, KYC-related processes, SIM logistics, sales, and customer services, while also operating the customer-facing digital platform.

The Authority also pointed to a revenue-sharing arrangement under the Build-Operate Services Agreement, under which DTMS receives 55% of relevant revenue during the first three years before its share declines according to the agreed schedule.

PTA said these features collectively give ONIC the core characteristics of an MVNO, even though PTML retains ownership of the brand and continues to hold the underlying network, spectrum and numbering resources.

The regulator also raised concerns relating to SIM issuance and KYC, billing and CRM systems, access to subscriber information and call-detail records, lawful interception, data localization, security, quality of service, disaster recovery, business continuity, mobile number portability and third-party arrangements.

PTA said independent verification of certain disaster-recovery, high-availability and service-level requirements had not been fully demonstrated, while some third-party arrangements involving DTMS had also not been completely placed before the Authority.

PTML Given Two Regulatory Options

PTA has given PTML two possible routes for ONIC’s future.

The company can restructure ONIC as a clearly defined PTML product or brand operating entirely under PTML’s existing mobile network operator license, removing the features that make it function like an independently operated MVNO.

Alternatively, if PTML wants to retain ONIC’s current structure, the relevant company will need to obtain the required MVNO license under the applicable regulatory framework.

The decision comes under Pakistan’s 2025 MVNO Policy Framework, which replaced the earlier 2006 guidelines and reduced the initial national MVNO license fee to $140,000.

PTA has also directed PTML to submit a comprehensive compliance report within seven working days, confirming that ONIC’s new commercial operations have been stopped and detailing the measures taken to comply with the order.

The regulator stressed that the three-month period applies only to migration of existing customers and does not authorize new sales, subscriptions,  or activations.

The dispute over ONIC dates back to 2023, when PTML first informed PTA of plans to introduce the digital service. PTA later raised concerns that ONIC’s market presentation could create the impression that it was an independent telecom operator rather than a PTML brand.

PTML continued to argue that ONIC was merely a digital brand supported through outsourcing and managed-service arrangements. PTA, however, rejected that characterization, saying the commercial and operational substance of the arrangement placed ONIC within the MVNO framework.

For ONIC, the path forward is now clear: either operate as a conventional PTML brand under the existing license or obtain formal MVNO authorization before resuming its current model.

ONIC’s Response

ONIC would like to reassure its customers that there is no disruption to its services, and customers can continue to use uninterrupted services. We remain fully committed to serving our customers and maintaining the highest standards of connectivity, service and support. Our customers remain our top priority, and we appreciate their continued trust and confidence in ONIC.