PTA Fines Jazz and Ufone Rs 155.6 Million Over Illegal SIM Issuance and Verification Failures

The Pakistan Telecommunication Authority (PTA) has imposed a combined penalty of Rs 155.6 million on Jazz and Ufone over separate violations related to SIM issuance, subscriber verification, and regulatory compliance.

In separate orders issued under Section 23 of the Pakistan Telecommunication (Re-organization) Act, 1996, the regulator fined Pakistan Mobile Communications Limited (Jazz) and Pakistan Telecom Mobile Limited (Ufone) Rs 77.8 million each for what it described as serious breaches of SIM registration and activation regulations.

The decisions follow independent investigations that uncovered weaknesses in operators’ monitoring systems and compliance controls despite the widespread use of biometric verification mechanisms across the telecom industry.

Ufone Penalized Over Fraud-Linked Duplicate SIM

The case against Ufone stemmed from the issuance of a duplicate SIM on September 29, 2025, against a subscriber’s mobile number without the customer’s knowledge or consent.

According to PTA, the duplicate SIM was subsequently used to facilitate fraudulent banking transactions that caused financial losses of approximately Rs 8.5 million to the affected customer.

The regulator found that although the SIM was issued through a PTA-approved Biometric Verification System (BVS) device and authenticated through NADRA records, the process failed to adequately verify the physical presence and consent of the legitimate subscriber.

PTA further observed that critical safeguards, including the effective implementation of Live Finger Detection (LFD) technology, appeared to have failed during the verification process.

Ufone argued that forensic examinations confirmed the integrity of its systems and that all logs reflected compliance with prescribed procedures. The company also stated that it suspended the retailer involved, blacklisted associated credentials, and initiated an internal inquiry.

However, PTA concluded that telecom operators remain fully responsible for SIMs issued through their authorised sales channels and held Ufone accountable for the unlawful issuance.

Jazz Fined Over Pre-Activated SIMs and Suspicious Activation Patterns

In a separate enforcement action, PTA penalized Jazz following an investigation into a franchise operation in Sargodha and its associated retail network.

The regulator’s review of SIM activation records from June and July 2024 revealed unusual patterns, including the activation of multiple SIMs against female CNICs during late-night hours between 11 pm and 7 am.

PTA also identified the use of multiple biometric verification devices linked to the franchise and conducted a raid on the premises on July 25, 2024.

During the operation, officials recovered 10 pre-activated SIMs, a practice explicitly prohibited under PTA regulations.

Jazz maintained that any alleged violations were committed independently by franchisees and retailers without the company’s knowledge. The operator also argued that no specific regulation prohibited SIM sales during late-night hours and noted that related criminal proceedings remain pending before the courts.

The regulator rejected those arguments, stating that telecom operators are legally responsible for the actions of their franchisees, agents, and retailers under the Subscribers’ Antecedents Verification Regulations, 2015.

In both cases, PTA concluded that the operators had failed to adequately monitor compliance across their distribution networks.

The regulator said recurring incidents of illegal SIM issuance continue to undermine consumer protection, financial security, and the integrity of Pakistan’s biometric verification regime.

Both operators have been directed to deposit their respective fines within 10 days. PTA warned that failure to comply could result in further legal action.

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