PTA fines mobile operators Rs740mn over multiple SIM issuance violations

The Pakistan Telecommunication Authority (PTA) has imposed cumulative penalties of around Rs740 million on the country’s four cellular mobile operators for repeated violations of SIM issuance regulations, holding them responsible for unauthorised activation of SIMs and serious lapses in biometric verification and oversight of franchise networks.

According to a series of enforcement orders issued under Section 23 of the Pakistan Telecommunication (Re-organisation) Act, 1996, China Mobile Pakistan (Zong) was fined Rs155.6 million, while Jazz (PTML), Telenor Pakistan and Ufone (PTML) each faced multiple enforcement actions carrying fines of Rs116.7 million, Rs116.7 million and Rs116.7 million, respectively.

PTA also imposed additional penalties of Rs77.8 million and Rs38.9 million on Ufone in separate cases, taking the cumulative penalties against all operators to about Rs740 million.

The regulator concluded that the operators had failed to ensure compliance with mandatory subscriber verification requirements, despite repeated regulatory directions aimed at preventing illegal SIM sales and identity fraud.

The enforcement orders revealed that, in multiple cases, SIMs were issued and activated against subscribers’ CNICs without their knowledge, consent or physical presence, in violation of the Subscriber Antecedents Verification Regulations and the Standard Operating Procedures, which govern biometric verification.

In one of the most serious cases, PTA found that China Mobile Pakistan had activated a SIM against a subscriber’s CNIC through an authorised franchise in Lahore without the subscriber’s knowledge. A subsequent raid led to the recovery of laptops, biometric verification devices and around 150 SIMs, indicating significant irregularities in SIM issuance.

The authority rejected the company’s defence that the SIM had been activated through NADRA biometric verification, ruling that successful biometric authentication alone did not absolve the operator of its statutory responsibility to ensure lawful issuance and genuine subscriber consent.

Telenor Pakistan was penalised after PTA found that a SIM had been activated against the same subscriber’s CNIC through an authorised franchise without her consent. During the investigation, authorities recovered multiple biometric verification devices, laptops and SIM inventory from the franchise premises.

PTA observed that operators cannot escape liability by arguing that franchisees function as independent contractors, noting that telecom regulations place exclusive responsibility for every SIM sold on the licensed operator.

Ufone faced multiple enforcement actions after investigations uncovered large-scale illegal SIM issuance through its sales channels.

In one case, raids resulted in the recovery of more than 12,600 active SIMs, along with biometric verification devices and other equipment allegedly used in unlawful SIM activations. Separate investigations also involved unauthorised activation of SIMs without subscribers’ consent through franchise outlets in different cities.

PTA imposed a fine of Rs116.7 million on Pakistan Mobile Communications Limited (Jazz) for violating regulatory requirements governing SIM issuance and biometric verification.

PTA concluded that SIMs were issued and activated in violation of prescribed regulatory safeguards, including issuance without demonstrated subscriber consent through physical presence at authorised sales channels and inadequate supervision, monitoring and compliance over authorised sales outlets and Biometric Verification System (BVS) device usage.

The regulator noted that despite the availability of detailed compliance procedures, operators had failed to maintain effective monitoring of franchisees and retailers, allowing repeated violations to occur.

PTA said the operators also failed to ensure effective implementation of Live Finger Detection (LFD) technology and geofencing controls on biometric verification devices, safeguards intended to prevent identity theft, biometric spoofing and unauthorised SIM activation.

The authority warned that illegal SIM issuance exposes telecom consumers to identity theft, cyber fraud, financial crimes and misuse of telecommunications infrastructure, stressing that licensed operators remain solely responsible for every SIM issued through their authorised sales channels.

All operators have been directed to deposit the respective fines within the stipulated period, failing which, PTA warned that further legal action would be initiated under the law.