India kills counterfeit mobiles …what of China?

Posted by iPhone Asia on Dec 1st, 2009 and filed under Telecom, Media, Technology. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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Author: iPhone Asia (1 Articles)

Dan Butterfield is the Managing Editor of iPhonAsia - a website covering iPhone with particular emphasis in China, Japan and Korea. Over the course of his career, Dan has held senior management positions in the securities industry and was responsible for development of Web 2.0 applications sold through national sales channels. Dan is a subject matter expert on the mobile telecom industry in China and is familiar with political and cultural aspects of doing business in Asia.

fake iphoneThe headline in today’s Times of India reads – “Chinese mobiles sans IMEI won’t buzz from Monday.”

Mobile carriers in India will be required to hit the kill switch on any/all phones that do not have (or do not immediately obtain) a true International Mobile Equipment Identity (IMEI) number. The deadline for compliance is midnight November 30, 2009 . Otherwise it’s no service for you.

IMEI is an international standard identification number assigned to each and every mobile handset. Many counterfeit (brand name knock-off) phone manufacturers don’t bother to include an IMEI number or they simply assign a phony number.

For months now India has been warning users of counterfeit phones (a.k.a. bandit phones or the Chinese term “Shanzhai ji”) that they must register their bandit phones and obtain a valid IMEI number. This campaign has been dubbed the Genuine IMEI Implantation Programme (GII), and it’s being carried out by Mobile Service Providers’ Association (MSPA) of India across the country. Many bandit phone owners have been overwhelming GII registration centers and the MSPA estimates that some 25 million bandit phones will go dead tomorrow.

Come monday, the MSPA will run a cross-reference of all legitimate IMEI numbers versus the IMEI they have on record for a network user’s handset. If the mobile user does not have an IMEI, or if the IMEI is a phony number that does not match to the make/model phone, they will require the mobile carrier shut off service for that number.

Why are India’s telecom authorities taking this action? Simple … Money and power. The”bandit phones” are manufactured without the normal telecom approval and testing protocols required by virtually every country. In addition, legit manufacturers must pay testing fees, licensing fees and taxes to authorities. Bandit phones circumvent these pesky taxes/fees. Most of the low-priced counterfeit brand phones are manufactured in China. Chinese citizens are by far the biggest users of “Shanzhai” phones but India has some 30 million in use.

It will be interesting to see if China’s Ministry of Industry and Information Technology (MIIT) opts to follow India’s lead. I don’t expect that China will be so aggressive in quashing counterfeit handsets. If they were to abruptly cutoff all “Shanzhai” phones there might be protests in the streets. China does not like unrest. There’s no real way to track the total number of “Shanzhai” phones presently in use in China, but I would not be surprised if the number was north of 100 million.

“Shanzhai”  phones should not be confused with brand name phones sold through grey-market channels. There are about 2 million real iPhones with vaild IMEI numbers in China. China Unicom will grant amnesty to any grey-market iPhone owner who wants to become a Unicom subscriber and upgrade to WCDMA 3G speeds (most are now on China Mobile’s EDGE 2G). Regardless of the fact that the IMEI may show that the iPhone was acquired in the grey-market, China Unicom (CHU) will extend an olive branch and entice the customer to become an “on contract” 3G subscriber.

For more background on “Shanzhai” culture and bandit phones, please visit iPhone Asia

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Line Break

Author: iPhone Asia (1 Articles)

Dan Butterfield is the Managing Editor of iPhonAsia - a website covering iPhone with particular emphasis in China, Japan and Korea. Over the course of his career, Dan has held senior management positions in the securities industry and was responsible for development of Web 2.0 applications sold through national sales channels. Dan is a subject matter expert on the mobile telecom industry in China and is familiar with political and cultural aspects of doing business in Asia.

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