According to the regulatory decision, PTA has determined that Onic falls within the regulatory framework for Mobile Virtual Network Operators (MVNOs) and cannot continue operating in its current form without the required regulatory approval and compliance with the applicable MVNO framework.

However, to protect existing customers from disruption, PTA has given PTML three months from the date it receives the order to transfer existing Onic customers to PTML. The authority clarified that this three-month period is only for the transfer of existing customers and does not constitute permission to continue Onic’s commercial operations.

The decision was issued following a hearing on PTML’s application concerning the launch and operation of Onic.

PTA noted that although Onic is a registered brand of PTML and uses PTML’s network, spectrum and numbering resources, its operational structure goes beyond that of a conventional telecom brand.

According to the authority, Onic operates as a separate digital-based service with dedicated packages, CRM and billing systems, digital platforms and customer-care systems. A separate entity, DTMS, is also involved in direct customer interaction and key commercial activities.

PTA said DTMS is involved in marketing, customer acquisition, KYC-related matters, SIM logistics, sales and customer services, while also operating digital platforms for direct interaction with customers.

The authority also highlighted a Build-Operate Services Agreement (BOSA) under which DTMS would receive 55% of relevant revenue during the first three years, with its share gradually decreasing according to an agreed schedule afterwards.

PTA said these features collectively demonstrate that Onic has the fundamental characteristics of an MVNO under the MVNO Policy Framework 2025, despite PTML retaining ownership of the brand and the underlying licensed network.

The authority therefore concluded that Onic falls within the MVNO regulatory framework and needs to be formally regulated.

PTA also raised concerns regarding customer management, SIM issuance and KYC, billing and CRM, access to customer information and Call Detail Records (CDRs), lawful interception, local data storage and security, quality of service, disaster recovery, business continuity, mobile number portability and third-party arrangements.

The regulator noted that independent verification of disaster recovery and high-availability testing, RTO/RPO requirements and SLA performance had not been fully demonstrated. Some third-party arrangements involving DTMS had also not been completely presented to the authority.

Two options for PTML

Under the decision, PTML has two options to comply with regulatory requirements.

The company can restructure Onic clearly as its own product or brand operating under PTML’s existing MNO licence and remove the features that make it appear to operate as an independent MVNO.

Alternatively, if PTML wants to retain Onic’s existing MVNO-style structure, it will have to obtain the required MVNO licence under the applicable regulatory framework.

PTA has also directed PTML to submit a comprehensive compliance report within seven working days of receiving the order. The report must confirm the cessation of Onic’s activities and detail the steps taken to implement the decision.

The authority clarified that no interim period or permission has been granted for Onic’s continued operations beyond the three-month period for transferring existing customers. Any future Onic activity will require the necessary regulatory approval from PTA.

Onic case dates back to 2023

The Onic matter dates back to June 2023, when PTML informed PTA of its intention to launch the digital product.

The initial proposal targeted digitally savvy customers and aimed to provide an app-based, fully digital service. Initial sales were planned for Karachi, Lahore, Islamabad, Rawalpindi and Faisalabad.

PTA later raised concerns that Onic’s market presentation could confuse consumers because it was being presented as an independent company without a clear connection to a licensed cellular operator. PTML was therefore directed to clearly disclose its relationship with Onic.

In August 2023, PTA ordered PTML not to launch Onic until complete information had been provided and reviewed.

PTML challenged the directive in the Islamabad High Court. In February 2026, the court converted the petition into a representation and sent the matter back to PTA for a reasoned decision.

PTML subsequently maintained before PTA that Onic was simply its own digital brand and not an independent telecom operator or MVNO. The company argued that its BOSA with DTMS represented an outsourcing or managed services arrangement.

PTML also maintained that customer ownership, numbering, spectrum and regulatory responsibility remained with the company. PTA, however, rejected the argument based on the actual nature of Onic’s commercial and operational arrangements and ordered the immediate halt of its commercial activities.