The Pakistan Telecommunication Authority (PTA) imposed a massive penalty on China Mobile Pakistan (Zong). Specifically, PTA fines Zong Rs. 116.7 million for a second time in one week. This penalty comes after the PTA found the operator responsible for issuing illegal SIMs. Just days after facing penalties for similar unauthorized activations at different locations, this new incident underscores severe, systemic weaknesses in Zong’s oversight and compliance mechanisms.
The Case of Unauthorized SIM Activations
The issue started when a citizen, Muhammad Shafique, filed a formal complaint. He discovered two SIM cards registered against his CNIC without his knowledge or consent. Consequently, the PTA launched an investigation. The regulator discovered that two separate franchise networks in Islamabad and Karachi activated these illegal SIMs.
Under Section 23 of the Pakistan Telecommunication (Re-organization) Act of 1996, the PTA held Zong completely accountable. Furthermore, the PTA stated this action directly violated the Subscribers Antecedents Verification Regulations of 2015. The regulator noted that the complainant disowned the SIMs. Therefore, this fact alone proved the franchises issued the connections without his physical presence.
Zong’s Defense & Internal Actions
During its internal inquiry, Zong admitted to procedural lapses at the franchise level. As a result, the company took disciplinary action against its staff. First, Zong terminated an employee at the Islamabad franchise. Second, it imposed a Rs. 50,000 fine on the Karachi franchise. Additionally, the telecom operator issued warning letters to both branches and blocked the two disputed SIM cards.
Moreover, Zong blacklisted the individuals involved in the illegal activations. The company also suspended 884 mobile numbers linked to the implicated sales personnel until it completes a strict re-verification process. However, Zong argued that the misconduct only involved individual retailers. The company insisted that all activations successfully passed through NADRA-linked biometric verification systems.
PTA Fines Zong & Rejects Operator Excuses
Despite Zong’s internal actions, the PTA completely rejected the company’s defense. The regulator clarified that the mobile operator holds sole responsibility for all SIM sales and activations. This rule applies unconditionally, whether franchisees, retailers, or other channels handle the transactions.
Additionally, the PTA pointed out critical failures in Zong’s security measures. For instance, the company failed to verify the physical presence of the subscriber. Furthermore, Zong failed to ensure its biometric devices complied with mandatory Live Finger Detection (LFD) requirements. The regulator also criticized Zong’s internal enforcement section. According to the PTA’s Standard Operating Procedures, this section failed to conduct adequate and regular franchise inspections.
Ultimately, the PTA warned that such weak controls open the door for unauthorized and criminal use of mobile connections. Therefore, the regulator directed Zong to deposit the Rs. 116.7 million fine within 10 days. If the company fails to comply, it will face further legal proceedings under current telecom laws.
