Pakistan Telecom Mobile Limited (PTML) has challenged the Pakistan Telecommunication Authority’s (PTA) order to suspend commercial operations of its digital telecom service, ONIC. The case centers on whether ONIC can operate under PTML’s existing license or needs separate authorization.
The PTA directed PTML to stop new sales, activations, SIM and eSIM issuance, subscriptions, marketing, and other commercial activities immediately. The regulator ruled that ONIC’s operating model falls under the Mobile Virtual Network Operator (MVNO) framework and requires the relevant authorization.
PTA Questions ONIC’s Operating Model
The dispute centers on ONIC’s relationship with PTML, which operates Ufone. PTML maintains that ONIC is its digital brand, operating under its existing mobile network operator (MNO) license. However, the PTA concluded that ONIC’s commercial arrangements match the characteristics of an MVNO under the 2025 policy framework.
The regulator acknowledged that ONIC is a registered PTML brand and uses its network, spectrum, and numbering resources. However, it highlighted the service’s customized packages, separate customer relationship management (CRM) and billing systems, digital platforms, and customer-care arrangements.
The PTA also pointed to DTMS, a separate company handling several customer-facing and commercial functions. These include marketing, customer acquisition, know-your-customer (KYC) checks, SIM logistics, sales, and customer services.
Another key factor was the Build-Operate Services Agreement (BOSA) between PTML and DTMS. Under the agreement, DTMS receives 55 percent of relevant revenue during the first three years. Its share then declines according to the agreed schedule.
PTML Must Restructure ONIC or Obtain an MVNO License
The PTA also raised concerns about subscriber information, call-detail records, lawful interception, data security, and data localization. Other issues included SIM issuance, KYC checks, billing systems, service quality, disaster recovery, and business continuity.
The regulator also highlighted mobile number portability and third-party arrangements. It ruled that PTML’s ownership of the ONIC brand and its licensed network did not, by itself, establish compliance with telecom regulations.
Under the order, PTML must either restructure ONIC as a clear PTML product operating under its existing license or obtain the required MVNO license. The company has challenged the regulator’s decision in court, disputing its interpretation of ONIC’s operating structure.
The PTA has allowed PTML three months to transfer existing ONIC subscribers to PTML to prevent service disruption. However, this period does not permit ONIC to continue commercial operations during the transition.
PTML must also submit a detailed compliance report within seven working days of receiving the order.
Dispute Dates Back to 2023
The regulatory dispute began in June 2023, when PTML informed the PTA of its plan to launch ONIC as an app-based digital telecom service. The service targeted consumers in Karachi, Lahore, Islamabad, Rawalpindi, and Faisalabad.
In August 2023, the regulator directed PTML not to launch ONIC until it submitted complete information for review. The PTA was concerned that the service’s market presentation could confuse consumers about its relationship with a licensed cellular operator.
PTML subsequently challenged the direction before the Islamabad High Court. In February 2026, the court converted the petition into a representation and sent the matter back to the PTA for a reasoned decision.
During the regulatory proceedings, PTML argued that ONIC was neither an independent telecom operator nor an MVNO. It described its agreement with DTMS as an outsourcing and managed-services arrangement.
PTML also maintained that subscribers, numbering resources, spectrum, and ultimate regulatory responsibility remained with the company. The PTA rejected this position, concluding that the substance of the commercial and operational arrangements brought ONIC under the MVNO framework.
PTML’s latest court challenge marks another stage in the dispute. The case now puts the suspension of ONIC’s commercial activities, the transfer of existing subscribers, and the service’s regulatory status at the centre of the legal proceedings.
