PrePay Subscribers Being Forced to Register Their Handsets

The mobile phone networks in India have bowed to government pressure and are now starting to require identification from all subscribers, including those using PrePay phones. The government has been making noises about demanding ID from all cellphone subscribers in an attempt to try and prevent terrorists from using cellphones to organize their activities. The networks are introducing the measure voluntarily, doubtless to forestall a legal action, as a voluntary code can always be dropped at a later date, while a formal law requiring ID would have to be overturned in parliament, a much harder measure.

The networks are now compelling their subscribers to visit a local retailer to fill in the necessary paperwork and provide ID, along with a photograph of themselves. Even then, any new PrePay top-up cards that are purchased will have a 24 hour activation delay before their credit can be used. Existing PrePay subscribers are expected to be given several weeks to register their handset before the networks start considering terminating their line.

The Brazilian Senate has also approved legislation to require the Brazilian networks to collect subscriber data from their PrePay users. Unlike India, were the measure has no legal backing, Brazil's action will impose fines on both the networks and the cellphone user if the database is not maintained. The move in Brazil follows the public reaction after the assassination of a mayor in the city of Sao Paolo and repeated jail breakouts, allegedly organised with PrePay phones that were smuggled into the jails.

All cellular networks already encourage customers to register their handsets as it offers them valuable market demographic data and the ability to contact customers with marketing offers. It will have to be seen if the networks are able to use this wealth of data to drive up ARPU and offset an expected drop in subscribers who refuse, for various reasons to provide their personal details.'"

Posted to the site on 20th May 2002