The Pakistan Telecommunication Authority (PTA) has just dropped a major regulatory bombshell. PTA ordered Pak Telecom Mobile Limited (PTML) to initiate an immediate shutdown of all commercial operations of its digital telecom service, ONIC. As a result, ONIC must instantly halt new sales, SIM and eSIM issuance, subscriptions, and marketing.
Why Did PTA Order ONIC Shutdown?
During a lengthy regulatory battle, PTML argued that ONIC was merely a digital brand. Furthermore, the company claimed its partnership with DTMS was simply an outsourcing agreement. PTML maintained that subscribers, numbering, spectrum, and regulatory responsibility remained with them.
However, the PTA completely rejected this claim. Following a detailed hearing, the regulator concluded that ONIC operates far beyond a conventional brand arrangement. Instead, it functions as an independent Mobile Virtual Network Operator (MVNO).
The PTA found that ONIC acts as a distinct digital-first platform. It uses customized packages, separate billing systems, and dedicated customer-care channels. Additionally, a separate entity named DTMS manages significant commercial tasks. These include marketing, customer acquisition, SIM logistics, and KYC processes.
Moreover, the PTA uncovered a massive revenue-sharing deal under a Build-Operate Services Agreement (BOSA). According to this agreement, DTMS takes a 55% cut of relevant revenue during the first three years. Therefore, the PTA decided that ONIC possesses all the essential traits of an MVNO. Consequently, it requires proper regulatory regularization.
Security Concerns & Regulatory Options
The regulator also raised several serious operational red flags. Specifically, the PTA expressed concerns over data localization, lawful interception, and security. It also highlighted issues regarding call-detail records (CDRs), disaster recovery, and quality of service. Furthermore, independent verification for high-availability testing and Service Level Agreements (SLA) fell short.
As a result, the PTA gave PTML two strict options. First, the company can strip away ONIC’s independent features. It must then restructure ONIC purely as a PTML brand under its existing Mobile Network Operator (MNO) license.
Alternatively, the operating company must obtain an official MVNO license. Notably, the federal government’s 2025 MVNO Policy Framework reduced the initial national license fee to just $140,000, a massive drop from the $5 million fee prescribed under the old 2012 regulations.
What Happens to Existing ONIC Customers?
Fortunately, the PTA wants to protect current users from abrupt service disruption. Therefore, the regulator granted PTML a strict three-month window solely to migrate existing ONIC customers to the PTML network.
Besides this brief transition period, the PTA granted no other authorization for ONIC to continue operations. Moreover, PTML must submit a comprehensive compliance report within seven working days of receiving the order. This report must confirm the complete closure of ONIC’s commercial operations.
This decision concludes a saga that began in June 2023. Back then, PTML first notified the PTA of its plan to launch the app-based service in major cities. The PTA quickly halted the launch in August 2023 over consumer confusion concerns. Eventually, the Islamabad High Court remanded the matter back to the PTA earlier this year in February 2026. Today, that process culminated in a definitive shutdown order, marking a significant regulatory shift for Pakistan’s emerging digital-first telecom market.
