PTA imposes Rs77.8mn fine on CM Pak for SIM geo-fencing breach

The Pakistan Telecommunication Authority (PTA) has slapped a hefty fine of Rs77.8 million on China Mobile Pakistan (CM Pak) for failing to enforce mandatory 100-metre geo-fencing requirements on biometric verification system (BVS) devices used for SIM sales.

According to an enforcement order issued by the PTA, the regulator found CM Pak responsible for allowing SIM sales beyond the designated geo-location of an authorised sales channel, in violation of the prescribed regulatory framework.

The case stems from a PTA field inspection conducted on March 30, 2026, when the regulator found an authorised sales representative affiliated with CM Pak’s Taxila franchise carrying out SIM sales at I-10 Markaz, Islamabad, outside the approved territorial jurisdiction and designated geo-location of the franchise.

The PTA said the activity also took place without the required Door-to-Door/Kiosk approval from the regulator.

The enforcement order noted that the BVS geo-fencing requirement was introduced to ensure that biometric devices remain within 100 metres of the designated geo-location of an approved sales channel.

SIM sales beyond that location are prohibited unless specifically approved by the PTA.

CM Pak had contested the proposed enforcement action, arguing that the incident was an isolated operational lapse involving a single Data Sales Officer (DSO), rather than a systemic failure of its compliance mechanism.

The company told the regulator that all SIMs involved had been activated only after successful biometric verification and remained traceable through prescribed records. It also maintained that there had been no fake or anonymous SIM issuance, biometric bypass or failure of NADRA verification.

CM Pak further informed the PTA that it had taken corrective action after being notified of the violation, including issuing a show-cause notice and warning letter to the concerned franchise, terminating the responsible DSO, circulating compliance advisories and strengthening its internal monitoring mechanism.
However, the PTA rejected the company’s defence, making it clear that successful biometric verification does not cure a separate breach of geo-fencing requirements.
The regulator observed that biometric verification and geo-fencing are independent regulatory obligations. While biometric verification establishes the identity of a subscriber, geo-fencing is intended to ensure that SIM sales remain confined to authorised locations, prevent unauthorised movement of BVS devices and reduce the risk of unlawful or untraceable SIM issuance.
The PTA also rejected CM Pak’s argument that responsibility for the violation could be shifted to the franchise or individual DSO. Under the Subscribers Antecedents Verification Regulations and the licence conditions, the operator retains statutory and direct responsibility for SIM sales carried out through its authorised sales network.
The authority further noted that corrective measures taken after detection of a violation may be considered as mitigating circumstances but do not erase an offence already committed.
The PTA stressed that geo-fencing is not merely a procedural formality but an essential regulatory safeguard. Allowing operators to neutralise established violations through subsequent corrective action, it said, would undermine the effectiveness of the mandatory regulatory framework.
After examining the show-cause notice, CM Pak’s compliance report, written replies and submissions made during the hearing, the PTA concluded that the operator had failed to exercise effective supervision and regulatory control over its authorised sales channel.
The regulator therefore held CM Pak liable under Section 23 of the Pakistan Telecommunication (Re-organization) Act, 1996 and imposed a fine of Rs77,800,000, directing the company to deposit the amount within 10 days of receipt of the order.
The PTA warned that failure to pay the fine within the stipulated period would invite further action in accordance with law.