ISLAMABAD – The Pakistan Telecommunication Authority (PTA) has directed Pak Telecom Mobile Limited (PTML), which operates Ufone, to immediately stop new sales, activations, SIM and eSIM issuance, subscriptions, marketing and other commercial activities of its ONIC digital telecom service.
The regulator has determined that ONIC’s current operating model falls within the Mobile Virtual Network Operator (MVNO) framework and cannot continue without the required regulatory authorisation.
The decision followed a hearing on PTML’s representation concerning the launch and operation of ONIC. However, the PTA has allowed the company three months from the receipt of the order to migrate or transfer existing ONIC subscribers to PTML, solely to prevent disruption to current customers.
The authority said ONIC is registered as a PTML brand and operates over PTML’s network, spectrum and numbering resources. However, it found that the service’s operational structure extends beyond a conventional telecom brand arrangement.
According to the decision, ONIC functions as a separate digital-focused proposition with customised packages, dedicated customer relationship management and billing systems, as well as its own digital and customer support platforms.
The PTA noted that DTMS, a separate entity, performs several key customer-facing and commercial functions for ONIC, including marketing, customer acquisition, know-your-customer processes, SIM logistics, sales and customer services.
The regulator also examined a Build-Operate Services Agreement between PTML and DTMS under which DTMS receives 55 percent of relevant revenue during the first three years, with its share subsequently decreasing according to the agreed schedule.
The PTA said the combined nature of these arrangements gives ONIC the characteristics of an MVNO under the MVNO Policy Framework 2025, regardless of PTML’s ownership of the brand and its control of the underlying licensed network.
The authority therefore held that ONIC requires regulatory regularisation under the applicable MVNO framework.
The PTA also raised concerns relating to customer management, SIM issuance and KYC procedures, billing, CRM systems, access to subscriber information and call-detail records, lawful interception, data security and localisation, quality of service, disaster recovery, business continuity, mobile number portability and third-party arrangements.
It further observed that independent verification of disaster-recovery and high-availability testing, including recovery time and recovery point objectives and service-level agreement performance, had not been fully established.
The regulator has given PTML two possible routes for compliance. The company can restructure ONIC as an unequivocal PTML product or brand operating under its existing mobile network operator licence, removing features that give it the characteristics of an independently operated MVNO.
Alternatively, PTML can retain the existing structure by ensuring that the relevant entity obtains the required MVNO licence.
The PTA has directed PTML to submit a comprehensive compliance report within seven working days of receiving the order. The report must confirm that ONIC’s commercial operations have ceased and outline the measures taken to comply with the decision.
The authority clarified that the three-month period does not constitute permission to continue ONIC’s operations and is exclusively intended to facilitate the migration of existing subscribers.
The dispute over ONIC dates back to June 2023, when PTML notified the PTA of plans to launch the digital telecom service. The product was aimed at digitally oriented consumers and was designed around an app-based customer experience, initially targeting Karachi, Lahore, Islamabad, Rawalpindi and Faisalabad.
The PTA subsequently raised concerns about ONIC’s market presentation and directed PTML to clearly disclose its relationship with the licensed cellular operator. In August 2023, the regulator directed PTML not to launch the service until the required information had been submitted and assessed.
PTML challenged the direction before the Islamabad High Court. In February 2026, the court converted the petition into a representation and sent the matter back to the PTA for a reasoned decision.
During the subsequent proceedings, PTML maintained that ONIC was its digital brand rather than an independent telecom operator or MVNO. It argued that its agreement with DTMS was an outsourcing and managed-services arrangement and that subscribers, numbering resources, spectrum and regulatory responsibility remained under PTML.
The PTA rejected that interpretation, saying the substance of the commercial and operational arrangements was more consistent with an MVNO structure, and ordered the discontinuation of ONIC’s commercial operations unless the service is brought within the applicable regulatory framework.
