PTA has imposed a Rs. 77.8 million fine on China Mobile Pakistan for violating geo-fencing requirements. The case involves biometric verification system devices used during SIM sales and customer verification.
According to the provided details, operators must keep BVS devices within 100 metres of their approved geo-location. The regulator found that China Mobile Pakistan allowed SIM sales outside an authorised location.
PTA Inspection Finds SIM Sales Outside Approved Area
The case began with a PTA inspection conducted on March 30, 2026.
Officials found a sales representative linked to a CM Pak franchise in Taxila selling SIMs at Islamabad’s I-10 Markaz. The location was outside the franchise’s approved territory and registered geo-location.
The representative also lacked the required approval for Door-to-Door or Kiosk sales, according to the regulator. Following the inspection, the authority initiated enforcement proceedings against the telecom operator.
CM Pak Challenges Regulatory Action
CM Pak challenged the proposed action and described the incident as an isolated mistake.
The company said one Data Sales Officer was responsible for the violation. It argued that the incident did not indicate a wider failure within its compliance system.
CM Pak also said the affected SIMs successfully passed biometric verification. According to the company, records were maintained to ensure the SIMs remained traceable.
It further maintained that no fake or anonymous SIMs were issued during the incident. The company also said there was no bypass of biometric verification or NADRA’s verification process.
Company Takes Corrective Measures
CM Pak took several measures after the violation was identified. It issued a show-cause notice and warning letter to the concerned franchise.
The company also terminated the Data Sales Officer involved in the incident. Additional compliance instructions were circulated, while internal monitoring procedures were strengthened.
However, PTA rejected the company’s main defence. The regulator said successful biometric verification does not cancel a separate violation of geo-fencing requirements.
PTA Explains Importance of Geo-Fencing
The authority said biometric verification and geo-fencing serve different regulatory purposes.
Biometric verification confirms the identity of a person purchasing a SIM. Geo-fencing ensures BVS devices remain within authorised locations during SIM sales.
The regulator said this requirement helps prevent unauthorised movement of verification devices. It also rejected efforts to place responsibility solely on the franchise or individual employee.
According to the regulator, telecom operators remain responsible for SIM sales conducted through their authorised networks.
Corrective action may reduce the seriousness of an offence, according to the authority. However, measures taken later cannot remove a violation that has already occurred.
CM Pak Fined Rs. 77.8 Million
The regulator reviewed CM Pak’s compliance report, written responses and submissions made during hearings.
It concluded that the operator failed to properly supervise its authorised sales network. CM Pak was subsequently held liable under Section 23 of the Pakistan Telecommunication (Re-organization) Act, 1996.
The authority imposed a financial penalty of Rs. 77.8 million. CM Pak has been directed to deposit the amount within 10 days of receiving the enforcement order.
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The regulator also warned that further legal action could follow if the payment is not made within the deadline.
