PTA imposes Rs38.9mn fine on Jazz over corporate postpaid SIM violations

The Pakistan Telecommunication Authority (PTA) has imposed a fine of Rs38.9 million on Pakistan Mobile Communication Limited (Jazz) for alleged violations in the issuance, verification, sale, activation and monitoring of around 400 Corporate Postpaid SIMs.

The enforcement order, issued under Section 23 of the Pakistan Telecommunication (Re-organization) Act, 1996, followed a complaint by M/s Target Marketing (Private) Limited, which alleged that approximately 400 corporate SIMs had been issued in its name without its request, approval, consent or authorisation.

The complainant had also alleged that it subsequently received a recovery notice through a third-party recovery agency for outstanding dues of Rs626,360.48 relating to SIMs allegedly registered in its name. It further claimed that the SIMs remained active and operational for a considerable period without its knowledge or approval.

According to the PTA order, the authority sought relevant records from Jazz after receiving the complaint. However, the operator furnished an incomplete response, which lacked mandatory corporate authorisation documents and end-user credentials.

The authority noted that Jazz provided an NTN certificate, an outdated business agreement naming a point of contact and a list of 400 SIMs allegedly registered in his name, along with requests for addition of business connections during June-August 2021.

The PTA held that the operator had failed to furnish complete records demonstrating compliance with mandatory requirements concerning end-user verification, maintenance of credentials and mapping of issued SIMs to individual users.

The regulator observed that corporate SIM issuance carries continuing obligations relating to verification, monitoring and traceability. It said responsibility for compliance cannot be shifted to corporate customers, franchisees, sales channels or authorised representatives.

The PTA also rejected Jazz’s contention that the dispute was essentially a billing or commercial matter, observing that the issue involved systemic non-compliance with mandatory regulatory requirements governing corporate SIM issuance, verification and post-issuance monitoring.

The authority further noted that effective monitoring and enforcement mechanisms at the operator level constitute an important component of the regulatory regime governing SIM issuance, particularly in respect of corporate and bulk SIM provisioning.

It concluded that Jazz had failed to ensure compliance with the applicable regulatory framework governing the issuance, verification, activation and monitoring of corporate SIMs, particularly under the relevant provisions of the Subscribers’ Regulations and the Standard Operating Procedure (SOP).

The PTA consequently imposed a penalty of Rs38.9 million on Jazz, directing the operator to deposit the amount within 30 days from the date of issuance of the order. Failure to deposit the fine within the stipulated period would result in further proceedings under law.