PTA orders PTML to immediately halt ONIC operations over MVNO non-compliance

The Pakistan Telecommunication Authority (PTA) has instructed Pak Telecom Mobile Limited (PTML) to immediately cease all sales, activations, SIM/eSIM distribution, subscriptions, marketing, and commercial activities for its ONIC digital telecom service, labeling it as a Mobile Virtual Network Operator (MVNO) under the MVNO Policy Framework 2025.

Despite PTML owning the ONIC brand and its network, spectrum, and numbering resources, the PTA deemed the service's operational structure as substantially different from a conventional brand arrangement, as it functions as a digital-first proposition with custom packages, separate CRM and billing systems, and dedicated digital and customer-care platforms.

The regulator also highlighted that an independent entity, DTMS, manages significant customer-facing and commercial functions, including marketing, customer acquisition, KYC processes, SIM logistics, sales, and customer service. Additionally, PTML has a revenue-sharing agreement with DTMS, under which the latter receives 55% of relevant revenue during the first three years, with the share decreasing as per an agreed schedule.

The PTA concluded that these features place ONIC within the MVNO regulatory framework, necessitating regulatory regularisation. Therefore, PTML has two options: restructure ONIC as a fully PTML product operating within its MNO licence or obtain an MVNO licence if it wishes to retain the present MVNO-type structure. The decision underscores a significant regulatory shift in Pakistan's digital-first telecom and MVNO market, as the federal government's 2025 MVNO Policy Framework supersedes earlier guidelines, reducing the initial MVNO licence fee from $5 million to $140,000.

PTML is required to submit a comprehensive compliance report within seven working days of receiving the order, detailing measures taken to comply with the decision.