PTA Halts Purchase of ONIC SIMs

The Pakistan Telecommunication Authority (PTA) has instructed mobile operator PTML to cease the issuance of new ONIC SIM cards and eSIMs. This includes halting the activation of new connections, new subscriptions, and related marketing and commercial operations. PTML has been granted a three-month window to migrate all existing ONIC customers to PTML while safeguarding their data and records throughout the transition.

Within a span of seven working days, PTML must submit a compliance report to the PTA, certifying that the prohibited activities have indeed been halted and detailing the measures taken to adhere to the authority's directives.

In its eight-page order, the PTA indicates that ONIC possesses distinct branding, packages, a dedicated mobile application, billing and customer management systems, along with direct customer operations. These attributes render ONIC's business model akin to that of a Mobile Virtual Network Operator (MVNO). The regulator also emphasizes the involvement of Digital Technology Management Services (DTMS), which manages ONIC's marketing, customer acquisition, Know Your Customer procedures, SIM logistics, sales, and customer support.

Under the agreement signed with PTML, DTMS is entitled to 55 percent of the associated revenue during the initial three years of operation.

PTML has two options to continue its ONIC services - either by operating it fully under its existing mobile license, removing features that classify ONIC as a separate MVNO, or by acquiring an MVNO license while maintaining ONIC's current operational setup. The regulator has highlighted that ONIC's separate branding, customised packages, digital platform, billing system, customer management, and customer care arrangements contribute to its characteristics of an MVNO.

Furthermore, the PTA underscores that DTMS, an independent entity, manages ONIC's marketing, customer acquisition, Know Your Customer processes, SIM logistics, sales, and customer service, and also receives 55 percent of the relevant revenue for the first three years under its agreement with PTML. Until ONIC is duly authorized, PTML remains accountable for ONIC's regulatory, technical, consumer protection, security, and national security responsibilities.

Existing ONIC customers will need to be transferred to PTML within a period of three months. The PTA's directives were first reported by ProPakistani.