The Pakistan Telecommunication Authority (PTA) has ordered Pak Telecom Mobile Limited (PTML) to stop new sales and activations of its ONIC digital telecom service. PTML also operates Ufone and owns the ONIC brand.
The order also covers new SIM and eSIM issuance, subscriptions, marketing and other commercial activities linked to ONIC.
Why is ONIC being shut down?
The PTA said that ONIC comes under the Mobile Virtual Network Operator (MVNO) framework. It said the service cannot continue in its current form without the required regulatory approval.
What will happen to existing customers?
The PTA has given PTML three months to move existing ONIC customers to PTML.
The three-month period is only for customer migration. It does not allow PTML to continue ONIC’s commercial operations during this time.
The regulator has also ordered PTML to send a compliance report within seven working days. The report must confirm that ONIC operations have been stopped and explain the steps taken to follow the order.
The PTA said any future operation of ONIC will need proper approval under the relevant telecom rules.
Why did PTA treat ONIC as an MVNO?
The PTA said ONIC goes beyond being a normal brand of PTML. ONIC uses PTML’s network, spectrum and numbering resources. However, the service also has its own digital setup and customer systems.
These include separate billing and CRM systems. ONIC also has its own digital platforms and customer care services.
Another company called DTMS handles several important parts of the service. These include marketing, attracting customers, KYC-related work, SIM delivery, sales and customer support.
DTMS also runs the digital platform used by ONIC customers.
The PTA also looked at the revenue-sharing deal between PTML and DTMS. Under the Build-Operate Services Agreement (BOSA), DTMS receives 55 per cent of the relevant revenue during the first three years. Its share then falls under the agreed plan.
The PTA said these arrangements give ONIC many features of an MVNO.
The Authority said PTML keeping ownership of the ONIC brand does not change this position.
These concerns include SIM issuance, KYC checks, billing and CRM systems. The PTA also looked at access to customer information and call records.
What two choices was PTML given?
The first option is to change ONIC’s structure, so it clearly operates as a PTML product or brand. In this case, it must work fully under PTML’s existing mobile network operator licence.
The second option is to keep the current MVNO-style structure. If PTML chooses this route, the relevant company must obtain the required MVNO licence.
The decision follows a hearing on PTML’s representation about ONIC and its launch.
