PTA Orders Ufone Operator to Stop New ONIC Sales Over MVNO License Issue

The Pakistan Telecommunication Authority has ordered PTML to stop new ONIC sales, activations and SIM issuance after ruling that the digital service falls under Pakistan’s Mobile Virtual Network Operator framework. Existing customers will get three months for migration.

The Pakistan Telecommunication Authority (PTA) issued the order to Pak Telecom Mobile Limited (PTML), which operates Ufone. The order requires PTML to immediately stop new ONIC sales, activations, SIM and eSIM issuance, subscriptions and related marketing and commercial activities.

The regulator’s decision follows a dispute that began in 2023. PTML has maintained that ONIC is a digital brand of the company. PTA has now found that ONIC’s current structure goes beyond a normal brand arrangement and falls within the MVNO framework.

The order does not require PTML to disconnect existing ONIC users. The company has three months from receiving the order to migrate or transfer those customers to PTML. PTA has made clear that this period only protects existing subscribers. It does not allow ONIC to accept new customers or continue new activations.

Why PTA Classified ONIC as an MVNO

PTML owns the ONIC brand and provides the network, spectrum and numbering resources. PTA did not dispute these points. The regulator focused on how ONIC actually operates.

ONIC has its own customized packages, CRM and billing systems. It also uses dedicated digital and customer-care platforms.

Another company, DTMS, handles several important functions for ONIC. These include marketing, customer acquisition, KYC-related work, SIM logistics, sales and customer service.

PTA also examined the financial arrangement between PTML and DTMS. Under their Build-Operate Services Agreement, DTMS receives 55% of relevant revenue during the first three years. Its share then declines under the agreement.

PTA considered the overall arrangement when assessing whether ONIC operates like a separate virtual operator.

The regulator also raised issues involving SIM issuance and KYC, customer information, billing, lawful interception, data security, data localization and third-party arrangements.

Based on these features, PTA concluded that ONIC’s current operating model falls under the MVNO Policy Framework 2025.

What PTML Can Do Next

PTML now has two options if it wants to continue the ONIC service.

• It can change ONIC so it clearly operates as a PTML brand under the company’s existing Mobile Network Operator license. That would require removing the features that make ONIC operate like a separate virtual operator.
• The other option is to obtain an MVNO license and continue with a structure that meets the MVNO rules.

PTML also has seven working days to submit a compliance report to PTA. The report must confirm that the ordered activities have stopped and explain the steps taken to comply with the decision.