Ufone’s digital brand ONIC has hit a regulatory wall. The Pakistan Telecommunication Authority (PTA) has ordered Pak Telecom Mobile Limited (PTML), the company behind Ufone, to immediately stop new sales, activations, SIM and eSIM issuance, subscriptions, and marketing for ONIC.
The reason: PTA says ONIC is operating like a Mobile Virtual Network Operator (MVNO), but it does not have an MVNO license.
This is a big deal for Pakistan’s telecom sector. ONIC has built a name for itself as a fully digital mobile brand, from SIM delivery to app-based customer support. Now its future depends on how PTML responds to this order.
What Happened?
PTA reviewed ONIC’s business model after PTML made its case in a hearing. The regulator wasn’t convinced.
According to PTA, ONIC’s current setup matches the profile of a Mobile Virtual Network Operator, and it cannot keep running this way without the proper license.
As a result, PTA has directed PTML to stop all new commercial activity tied to ONIC. This includes new SIM and eSIM issuance, new subscriber activations, and marketing campaigns.
Existing ONIC users are not cut off right away. PTA has given PTML a three-month window from the date of the order to move current ONIC subscribers over to PTML directly, purely to avoid disrupting active users.
Why PTA Says ONIC Is An MVNO
PTA’s order lists several reasons why ONIC looks and functions like an independent MVNO rather than a simple PTML sub-brand.
- Separate branding and packages: ONIC markets its own plans and identity, separate from Ufone.
- Dedicated systems: ONIC runs its own app, its own billing and customer-management setup, and handles customer interactions directly, separate from Ufone’s core systems.
- Third-party operator involved: A company called Digital Technology Management Services (DTMS) reportedly runs ONIC’s day-to-day operations.
Here’s where it gets interesting on the money side. Under the deal between PTML and DTMS, DTMS reportedly keeps 55 percent of the relevant revenue for the first three years of the arrangement. That revenue split was one of the details PTA pointed to while making its decision.
PTML pushed back during the hearing. The company argued that ONIC is simply its own digital brand, not a separate telecom operator, and that the arrangement with DTMS was an outsourcing deal, not an MVNO setup. PTA did not accept that explanation.
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PTML’s Two Options Going Forward
According to a PTA official who spoke to Dawn, PTML now has two paths:
- Strip out the MVNO-like features and run ONIC purely as a Ufone product under Ufone’s existing mobile operator license.
- Apply for a proper MVNO license and continue running ONIC as a separate, licensed digital brand.
Getting an MVNO license isn’t free, either. Under Pakistan’s 2025 MVNO Policy Framework, the national MVNO license fee was brought down to $140,000, though other license tiers reportedly cost significantly more.
PTA has also asked PTML to submit a compliance report within seven working days, confirming the ordered activities have stopped.
Why It Matters
This isn’t just paperwork. It’s a signal about how PTA plans to regulate digital-only telecom brands going forward.
Digital sub-brands like ONIC have grown popular because they skip long queues and physical SIM shops, letting users sign up entirely through an app. But PTA’s order suggests that convenience alone doesn’t exempt a service from licensing rules if it functions independently enough from its parent operator.
For everyday ONIC users, the immediate impact is limited. Existing connections keep working during the three-month migration window. But anyone hoping to buy a new ONIC SIM or eSIM will have to wait until PTML resolves its license status, one way or another.
For the broader industry, this case could set a precedent. Other digital telecom brands operating under a parent mobile network operator’s license may now face similar scrutiny.
Background: A Dispute Going Back To 2023
This isn’t a sudden move by PTA. The disagreement over ONIC’s regulatory status dates back to 2023, when PTML first told PTA about its plans to launch the digital service. PTA reportedly raised concerns even then that ONIC’s branding could make it look like an independent operator rather than a Ufone product. The matter has also involved an Islamabad High Court remand along the way, according to reports.
Final Thoughts
ONIC’s situation now hinges on a decision PTML has to make: fold the brand back under Ufone’s existing license, or pay for a standalone MVNO license and keep ONIC as it is.
Either way, current ONIC customers have a three-month cushion, but new customers are locked out for now. If you’re an ONIC user, it’s worth keeping an eye on official announcements from both PTA and PTML over the coming weeks.
