Pakistan Telecom Mobile Limited (PTML) has challenged the Pakistan Telecommunication Authority’s (PTA) decision to suspend the commercial operations of its digital telecom brand ONIC, escalating a dispute over the service’s regulatory status.

The PTA had directed PTML to immediately halt new ONIC SIM and eSIM sales, activations, subscriptions, marketing, and other commercial activities, ruling that the service falls within the Mobile Virtual Network Operator (MVNO) framework and requires separate regulatory authorization.

The regulator has allowed PTML three months to migrate existing ONIC subscribers to PTML to avoid service disruption. However, it clarified that the transition period does not permit ONIC to continue commercial operations or acquire new customers.

PTML has contested the ruling, maintaining that ONIC is a digital brand operating under its existing Mobile Network Operator (MNO) license rather than an independent virtual network operator.

Why PTA Wants ONIC’s Operations Suspended

The dispute centers on ONIC’s business model and its commercial relationship with Digital Technology Management Services (DTMS), a separate entity responsible for several customer-facing operations.

According to the PTA, ONIC operates through separate billing and customer management systems, dedicated digital platforms, and customized packages. DTMS also handles key functions, including marketing, customer acquisition, SIM distribution, and customer support.

The regulator highlighted a Build-Operate Services Agreement under which DTMS receives 55% of relevant revenue during the initial three years, with the share declining subsequently.

PTA maintained that these arrangements give ONIC the characteristics of an MVNO, despite the brand operating on PTML’s existing network infrastructure.

PTML, however, argues that its arrangement with DTMS is an outsourcing agreement and does not change ONIC’s status as a digital brand. The company insists that spectrum, numbering resources, subscribers, and regulatory responsibility remain under PTML.

The regulator also raised concerns over subscriber data management, SIM verification, billing systems, lawful interception and compliance with telecom security requirements.

Legal Dispute Dates Back to 2023

The regulatory disagreement began in June 2023, when PTML informed the PTA of plans to introduce ONIC as an app-based mobile service targeting major Pakistani cities.

In August 2023, the regulator instructed PTML not to launch the service until its operational structure had been reviewed. PTML subsequently challenged the directive before the Islamabad High Court.

In February 2026, the court referred the matter back to the PTA for a reasoned decision. Following a hearing, the regulator concluded that ONIC’s operating arrangements fell within the MVNO framework.

Under its latest order, the PTA has given PTML two options: restructure ONIC as a product operating entirely under its existing telecom license or obtain the necessary MVNO authorization.

The latest legal challenge has placed ONIC’s operating future under renewed uncertainty, with the court’s decision potentially influencing how digital telecom brands and third-party service arrangements are regulated in Pakistan.

For existing ONIC customers, the immediate concern is the regulator-directed migration process, while restrictions on new customer acquisition remain central to the dispute. The available information does not establish whether the court has granted any interim relief.