PTA Fines Jazz Rs 38.9 Million Over Corporate SIM Issuance and Verification Violations

The Pakistan Telecommunication Authority (PTA) has imposed a Rs 38.9 million fine on Pakistan Mobile Communication Limited (Jazz) over alleged regulatory violations linked to the issuance, verification, activation, and monitoring of around 400 corporate postpaid SIMs.

The enforcement action followed a complaint filed by M/s Target Marketing (Private) Limited, which alleged that hundreds of corporate SIMs had been issued in its name without its request, approval, consent, or authorization.

According to the PTA order, the complainant also received a recovery notice through a third-party agency for Rs 626,360.48 in outstanding dues linked to SIMs allegedly registered in its name. The company maintained that the connections remained active for a considerable period without its knowledge.

The regulator initiated proceedings under Section 23 of the Pakistan Telecommunication (Reorganization) Act, 1996, seeking records from Jazz to establish whether the operator had complied with mandatory corporate SIM requirements.

PTA Finds Gaps in Verification and Record-Keeping

The PTA said Jazz’s response was incomplete and did not contain all required corporate authorization documents and end-user credentials.

The operator reportedly submitted an NTN certificate, an older business agreement identifying a point of contact, a list of 400 SIMs allegedly registered in that person’s name, and requests for additional business connections made between June and August 2021.

However, the authority said the material was insufficient to demonstrate full compliance with requirements governing end-user verification, maintenance of credentials, and mapping of issued SIMs to individual users.

The regulator stressed that corporate and bulk SIM issuance carries continuing obligations related to verification, monitoring, and traceability.

It also rejected the argument that responsibility could be shifted to corporate customers, franchisees, sales channels, or authorized representatives, saying the licensed operator remains accountable for compliance with the regulatory framework.

The PTA further dismissed Jazz’s position that the dispute was primarily a billing or commercial matter, holding that the case involved broader questions of regulatory compliance in corporate SIM issuance and post-activation monitoring.

The authority said effective monitoring and enforcement mechanisms at the operator level are a critical part of the SIM regulatory regime, particularly where corporate or bulk connections are involved.

Jazz Directed to Pay Fine Within 30 Days

The PTA concluded that Jazz had failed to ensure compliance with the applicable provisions of the Subscribers’ Regulations and relevant standard operating procedures governing corporate SIMs.

As a result, the regulator imposed a Rs 38.9 million penalty and directed the operator to deposit the amount within 30 days from the issuance of the order.

The PTA warned that failure to pay the penalty within the stipulated period could lead to further legal proceedings.

The case highlights the regulator’s increasing focus on SIM traceability, corporate-user verification, and post-issuance monitoring, particularly as authorities tighten oversight of telecom operators’ customer registration and compliance systems.

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