PTA has imposed a Rs 77.8 million fine on Pakistan Mobile Communications Limited, operating as Jazz, following an investigation into illegal SIM sale and activation practices at a franchise in Sargodha and its connected retailers. The regulator has given Jazz a strict 10-day deadline to deposit the penalty amount, with a warning that failure to comply will result in further legal action under applicable laws. The enforcement order, issued under Section 23 of the Pakistan Telecommunication Re-organization Act 1996, runs to 19 pages and marks one of the more significant regulatory actions taken against a major telecom operator in Pakistan in recent memory.
The investigation examined SIM sale and activation data from June to July 2024, during which PTA identified highly unusual patterns at the Sargodha franchise. Retailers had activated dozens of SIM cards using female Computerised National Identity Cards during late-night hours, specifically between 11 PM and 7 AM, a pattern that raised immediate red flags about the legitimacy of the activations. The franchise also used multiple biometric verification devices to carry out the activations, compounding the irregularities. PTA conducted a raid on the franchise premises on July 25, 2024, during which authorities recovered 10 pre-activated SIM cards, a practice that is strictly prohibited under PTA regulations.
During the proceedings, Jazz denied any wrongdoing and argued that rogue franchisees and retailers had acted independently without the knowledge of corporate management. The operator contended that no law explicitly prohibits selling SIM cards during late-night hours, that criminal proceedings were still ongoing in court meaning no formal guilt had been established, and that PTA could not invoke Section 23 for what Jazz characterised as standard operating procedure violations alone. PTA rejected all of these arguments in its enforcement order, stating clearly that operators bear sole responsibility for any SIM sold through their network and that compliance with PTA directions and SIM sale standard operating procedures is a mandatory licence obligation. The regulator held that the actions of franchisees do not absolve Jazz of its legal responsibilities under the terms of its operating licence.
Jazz had terminated the franchise and blacklisted the involved retailers following the discovery of the violations, but PTA deemed these steps insufficient to offset the seriousness of the infractions already committed. The regulator concluded that Jazz demonstrated serious weaknesses in its monitoring and enforcement systems and failed to adequately supervise its sales channels. The fine sends a clear message that PTA intends to hold operators accountable for the conduct of their distribution networks regardless of whether the violations can be attributed to individual franchisees acting independently, reinforcing the principle that the integrity of the SIM issuance process is an operator-level responsibility that cannot be delegated away.
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