Pakistan Telecom Mobile Limited (PTML) has challenged the order of Pakistan Telecommunication Authority (PTA) that directs the immediate suspension of commercial operations of its digital telecom service ONIC, taking the regulatory dispute to court. The PTA had ordered PTML to immediately stop new sales, activations, SIM and eSIM issuance, subscriptions, marketing and commercial operations of ONIC, ruling that the service falls within the Mobile Virtual Network Operator (MVNO) framework and cannot operate in its existing form without the required regulatory authorization. The order allows PTML three months, exclusively to migrate existing ONIC subscribers to PTML so that service is not disrupted, and it requires the company to submit a detailed compliance report within seven working days of receiving the order.
The dispute centers on whether ONIC is a digital brand of PTML operating under its existing Mobile Network Operator (MNO) licence, or an MVNO type proposition that needs separate regulatory authorization. In its decision after a hearing, the PTA rejected the position of PTML that ONIC was merely its own digital brand, holding that the commercial and operational arrangements of the service showed the essential characteristics of an MVNO under the 2025 policy framework. The Authority noted that ONIC is a registered PTML brand and uses its network, spectrum and numbering resources, yet it operates through customized packages, separate customer relationship management (CRM) and billing systems, dedicated digital platforms and customer care arrangements.
The regulator also highlighted the role of DTMS, a separate entity responsible for significant customer facing and commercial functions, including marketing, customer acquisition, know your customer (KYC) processes, SIM logistics, sales and customer services. The PTA attached particular significance to the Build Operate Services Agreement (BOSA), under which DTMS receives 55 percent of relevant revenue during the initial three years, with its share declining afterwards under the agreed schedule. The Authority held that ownership of the ONIC brand and the underlying licensed network by PTML did not, by itself, establish regulatory compliance, and it raised concerns about subscriber information and call detail records, lawful interception, data localization and security, SIM issuance and KYC, billing systems, quality of service, disaster recovery, business continuity, mobile number portability and third party arrangements.
Under the order, PTML must either restructure ONIC as an unequivocal PTML product operating within its existing licence or obtain the required MVNO licence if it intends to keep the present operating structure. The PTA clarified that the three month period is only for transferring existing subscribers and does not allow ONIC to continue its commercial operations during the transition. The dispute dates back to June 2023, when PTML notified the PTA of its intention to introduce ONIC as an app based digital telecom service for consumers in Karachi, Lahore, Islamabad, Rawalpindi and Faisalabad, and in August 2023 the regulator directed the company not to launch the service until complete information had been provided and evaluated. PTML then challenged that direction before the Islamabad High Court, which converted the petition into a representation in February 2026 and sent the matter back to the PTA for a reasoned decision. PTML told the regulator that ONIC is not an independent telecom operator or MVNO and that its agreement with DTMS is an outsourcing and managed services arrangement, with subscribers, numbering resources, spectrum and final regulatory responsibility remaining with PTML. The PTA concluded that the substance of the arrangements brought ONIC within the MVNO framework, and the latest court challenge has moved the dispute into a new phase.
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