PTA Orders Onic to Stop—What Happens to Existing Users?
News Desk
Islamabad: The Pakistan Telecommunication Authority (PTA) has ordered Pak Telecom Mobile Limited (PTML), the operator of Ufone, to immediately suspend new sales, activations, SIM and eSIM issuance, subscriptions, marketing and other commercial activities related to its digital telecom brand Onic.
The regulator has ruled that Onic’s existing business model falls under the Mobile Virtual Network Operator (MVNO) Policy Framework 2025 and cannot continue in its current form without the necessary regulatory approval.
To protect existing subscribers from an abrupt service disruption, the PTA has allowed PTML three months from the date of the order to migrate or transfer Onic customers to PTML.
The decision followed a hearing concerning PTML’s application for the launch and operation of Onic.
The PTA observed that while Onic is a registered PTML brand and uses PTML’s network, spectrum and numbering resources, its operational structure extends beyond that of a conventional telecom brand.
According to the regulator, Onic operates as a digital-first service with its own packages, CRM and billing systems, digital platforms and customer-care arrangements. A separate entity, DTMS, handles several key functions, including marketing, customer acquisition, KYC-related processes, SIM logistics, sales and customer support.
The Authority also highlighted the revenue-sharing arrangement under the Build-Operate Services Agreement (BOSA), under which DTMS receives 55% of relevant revenue during the first three years, with its share subsequently declining according to an agreed schedule.
The PTA said these arrangements collectively give Onic the characteristics of an MVNO under the 2025 policy framework, despite PTML retaining ownership of the brand and the underlying network.
The regulator rejected the argument that the arrangement was compliant simply because PTML owns the brand, network, spectrum and numbering resources and remains ultimately responsible for regulatory obligations.
The Authority also raised concerns over subscriber management, SIM issuance and KYC, billing and CRM, access to subscriber data and call detail records, lawful interception, local data storage and security, quality of service, disaster recovery and business continuity.
It said 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 PTA also noted that some third-party arrangements involving DTMS had not been completely disclosed.
PTML has been given two routes to achieve compliance.
It can either restructure Onic as a PTML product operating fully under the company’s existing Mobile Network Operator (MNO) licence, removing features that make it function as an independent MVNO.
Alternatively, PTML can retain Onic’s existing structure by obtaining the required MVNO licence under the applicable regulatory framework.
The PTA has also ordered PTML to submit a comprehensive compliance report within seven business days of receiving the decision. The report must detail the steps taken to implement the order, including confirmation that Onic’s commercial activities have been discontinued.
The regulator clarified that the three-month period is exclusively for migrating existing subscribers and does not allow Onic to continue its commercial operations. Any future activities involving Onic will require prior approval from the PTA.
The decision comes as Pakistan moves to establish a clearer regulatory framework for digital-first telecom services and MVNOs. The MVNO Policy Framework 2025 replaced the earlier 2006 guidelines and reduced the initial national MVNO licence fee to $140,000, compared with the $5 million initial fee under the 2012 regulations.
The regulatory issue surrounding Onic dates back to June 2023, when PTML informed the PTA of its plans to launch the digital-first telecom service targeting digitally savvy consumers through an app-based model.
