Regulator cites repeated biometric verification failures, illegal SIM activations and weak franchise oversight

Pakistan’s four cellular mobile operators—Jazz, Zong, Ufone and Telenor—have been fined a combined Rs740 million by the Pakistan Telecommunication Authority (PTA) after investigations uncovered repeated violations of SIM issuance regulations, including unauthorized activations, biometric verification failures and inadequate oversight of franchise networks.

According to a series of enforcement orders issued under the Pakistan Telecommunication (Re-organization) Act, 1996, Zong was fined Rs155.6 million, while Jazz, Telenor Pakistan and Ufone each received penalties of Rs116.7 million. Ufone was further fined Rs77.8 million and Rs38.9 million in separate enforcement actions, taking the cumulative penalties against the operators to around Rs740 million.

PTA concluded that the operators repeatedly failed to comply with mandatory subscriber verification requirements despite previous regulatory directions aimed at curbing illegal SIM sales, identity theft and cyber-enabled fraud.

The regulator found multiple cases where SIM cards were activated against citizens’ Computerised National Identity Cards (CNICs) without their knowledge, consent or physical presence, violating biometric verification rules and subscriber verification regulations.

Among the cases, Zong was penalized after a SIM was activated through an authorized franchise in Lahore without the subscriber’s consent. A subsequent raid recovered laptops, biometric verification devices and around 150 SIM cards, indicating serious irregularities in the issuance process.

Investigations involving Telenor also revealed unauthorized SIM activations through franchise outlets, while Ufone faced multiple enforcement actions after authorities recovered more than 12,600 active SIMs, biometric verification devices and related equipment allegedly used for unlawful SIM issuance.

Jazz was similarly found to have violated regulatory safeguards by allowing SIM activations without proper subscriber consent and failing to effectively supervise franchise outlets and Biometric Verification System (BVS) devices.

PTA rejected operators’ arguments that franchisees were independent entities, stressing that licensed telecom companies remain fully responsible for every SIM issued through their authorized sales channels. The authority also noted deficiencies in implementing Live Finger Detection (LFD) and geofencing technologies designed to prevent biometric spoofing and unauthorized SIM activation.

The regulator directed all four operators to deposit the fines within the prescribed timeframe, warning that failure to comply would result in further legal action under the law.