By Editorial Team 
The order was based on the structure of ONIC making consumers perceive it as an independent mobile operator, while it is a sub-brand of Pakistan Telecom Mobile Limited (PTML). Users have a period of 90 days to migrate their numbers to other mobile operators like Ufone.
History and Background of ONIC
ONIC was launched on 14 August 2023 by Pakistan Telecom Mobile Limited (PTML). The reason for launching ONIC was to introduce the first digital telecom brand in Pakistan. Unlike traditional mobile operators with franchises, physical retailers, and digital channels for managing customer relationships, ONIC was designed to meet customer needs through digital platforms, such as a mobile application. ONIC allowed customers to buy a SIM or eSIM through its website and mobile application.
ONIC was designed for customers who prefer engagement and communication through digital platforms, allowing freedom, better engagement, more control, and meeting their needs in a time-saving manner. ONIC targeted students, remote workers, freelancers, gamers, and customers who prefer digital platforms instead of traditional ones. Moreover, transparency in terms of no add-ons and hidden charges was an important aspect of service and packages claimed by ONIC.
Consumers’ Confusion regarding ONIC as an independent mobile operator
Consumers perceived ONIC as an independent mobile operator in Pakistan, while it is a brand and a digital product owned by PTML. PTA cleared the position of ONIC under a directive issued on 11 August 2023. A clarification was made that ONIC is not a mobile operator in Pakistan, and it is a digital product of PTML to address consumer confusion.
Reason for closure of ONIC’s operations in Pakistan
PTML continued managing ONIC’s operations under its license, treating it as an internal brand. However, PTA evaluated ONIC as a virtual mobile operator in Pakistan, not an internal brand of PTML. PTA required ONIC to acquire a Mobile Virtual Network Operator (MVNO) license because it has a structure different from traditional operators in Pakistan. It is using resources and infrastructure owned by PTML and Ufone. In the recent hearing, PTA determined ONIC to be a virtual mobile operator, an independent entity, with contracts in its own name, and offering packages to customers different from the parent company. Therefore, the position of ONIC as an internal digital brand of PTML was rejected by PTA.
| PTA’s Concern | Reasoning based on ONIC’s position |
| Separate commercial positioning | ONIC is not an internal brand; it has customised packages and different offerings |
| Billing | Separate arrangement for billing consumers |
| CRM | A separate and dedicated system for managing customer relationships |
| Customer experience | A separate and dedicated platform for customer experience |
| Customer Acquisition | Managed by DTMS for ONIC |
| KYC process and procedure | DTMS is involved in managing the KYC process |
| SIM logistics | SIM logistics for ONIC was managed by DTMS, not PTML |
| Sales and customer services | Managed and handled by DTMS |
| Revenue model | DTMS shared 55% of revenue for the first three years under the BOSA agreement |
The most important point was the involvement of Digital Technology Managed Services (DTMS) Private Limited in managing the operations of ONIC. PTA argued that if ONIC is an internal brand of PTML, it should be fully managed by PTML for management of functions like CRM, issuance of SIM, billing arrangement, KYC procedures, customer acquisition, and others.
PTML presented the argument that DTMS is an entity responsible for managing outsourced operations of ONIC.
In the case of ONIC, DTMS is involved in managing these operations, with an agreement to share revenue of 55% in the first three years of service. This is not the manner in which vendors manage outsourced operations through revenue sharing. Considering these points, PTA determined that ONIC should operate under the MVNO policy framework with a separate license.
ONIC customers have a period of 90-days. Under this period, existing customers will be migrated to Ufone without facing any disruption in their connectivity and assets. PTA has issued an order requiring PTML to prepare and submit a Compliance Report confirming the closure of ONIC’s operations in Pakistan within a period of 7-days from the date of issuance of the order.