ISLAMABAD: The Pakistan Telecommunication Authority (PTA) has ordered Pak Telecom Mobile Limited (PTML) to immediately shut down new sales, activations, SIM/eSIM issuance, subscriptions, marketing and commercial operations of its ONIC digital telecom service, declaring that the proposition falls within the Mobile Virtual Network Operator (MVNO) framework.
In a major regulatory decision, the Authority directed PTML, which operates Ufone, to discontinue ONIC in its existing form, holding that the service cannot continue without the requisite regulatory authorisation and compliance with the applicable MVNO framework.
However, to protect existing subscribers from service disruption, the PTA has allowed PTML three months from receipt of the order solely to migrate/transfer existing ONIC customers to PTML.
The decision was announced following a hearing and disposes of PTML’s representation concerning the launch and operation of ONIC.
The PTA concluded that although ONIC is a registered PTML brand and uses PTML’s network, spectrum and numbering resources, its operational structure goes substantially beyond a conventional brand arrangement.
According to the Authority, ONIC operates as a distinct digital-first proposition with customised packages, separate CRM and billing systems, and dedicated digital and customer-care platforms, while a separate entity, DTMS, performs significant customer-facing and commercial functions.
The regulator noted that DTMS is involved in marketing, customer acquisition, KYC-related processes, SIM logistics, sales and customer services, while operating the customer-facing digital platform.
The PTA also highlighted a significant revenue-sharing arrangement under the Build-Operate Services Agreement (BOSA), under which DTMS receives 55 percent of relevant revenue during the initial three years, with its share subsequently declining according to the agreed schedule.
The authority said these features collectively demonstrate that ONIC possesses the essential characteristics contemplated under the MVNO Policy Framework 2025, notwithstanding PTML’s ownership of the ONIC brand and its retention of the underlying licensed network.
Consequently, the PTA determined that ONIC falls within the MVNO regulatory framework and requires regulatory regularisation.
The regulator said the existing arrangement cannot be treated as fully regularised merely because PTML retains the brand, network, spectrum, numbering resources and ultimate regulatory responsibility.
It further raised concerns over customer management, SIM issuance and KYC, billing and CRM, access to subscriber information and call-detail records (CDRs), lawful interception, data localisation and security, quality of service, disaster recovery, business continuity, mobile number portability and third-party arrangements.
The PTA particularly observed that independent verification of disaster recovery/high-availability testing, RTO/RPO requirements and SLA performance had not been fully demonstrated, while certain third-party arrangements involving DTMS had not been completely placed before the Authority.
Under the decision, PTML has two regulatory options.
It may restructure ONIC as an unequivocal PTML product/brand operating within PTML’s existing MNO licence, removing characteristics that make it an independently operated MVNO proposition.
Alternatively, if PTML wants to retain the present MVNO-type structure, the relevant company must obtain the requisite MVNO licence under the applicable regulatory framework.
The decision marks a significant regulatory development for Pakistan’s emerging digital-first telecom and MVNO market. The federal government’s 2025 MVNO Policy Framework had superseded the earlier 2006 guidelines and reduced the initial national MVNO licence fee to USD 140,000, compared with the USD 5 million initial licence fee prescribed under the 2012 MVNO regulations.
The PTA has further ordered PTML to submit a comprehensive compliance report within seven working days of receiving the order, confirming cessation and closure of ONIC operations and detailing measures taken to comply with the decision.
The authority made clear that no transition period or authorisation to continue ONIC operations has been granted, other than the three months exclusively meant for migration of existing customers. Any future operation of ONIC will require requisite regulatory authorisation from the PTA.
The ONIC saga dates back to June 2023, when PTML notified the PTA of its intention to launch the digital product. The original proposal targeted digitally savvy consumers and envisaged an app-based customer journey, with initial sales in Karachi, Lahore, Islamabad, Rawalpindi and Faisalabad.
The PTA subsequently raised concerns that ONIC’s market presentation could create consumer confusion by portraying it as an independent company unrelated to a licensed cellular operator, and directed PTML to clearly disclose its relationship with PTML.
The regulator ordered PTML in August 2023 not to launch ONIC until complete information was provided and evaluated. PTML challenged the direction before the Islamabad High Court, which in February 2026 converted the petition into a representation and remanded the matter to the PTA for a reasoned decision.
PTML subsequently maintained before the PTA that ONIC was merely its own digital brand and not an independent telecom operator or MVNO, arguing that the BOSA with DTMS represented an outsourcing/managed-services arrangement. The company also maintained that subscribers, numbering, spectrum and regulatory responsibility remained with PTML.
The PTA, however, rejected this characterisation based on the substance of the commercial and operational arrangements and ordered the immediate discontinuation of ONIC’s commercial operations.
An official statement issued by ONIC stated, “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.”
Copyright Business Recorder, 2026