ICA plans to regulate used handsets sale

By siliconindia   |   Wednesday, 25 November 2009, 15:01 IST   |    3 Comments
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Jaipur: The Indian Cellular Association (ICA) is planning to mobilize the industry for regulating the sale of used mobile handsets, after curbing the proliferation of unbranded and counterfeit mobile handsets and accessories. ICA National President Pankaj Mohindroo told Economic Times that unauthorized exchange of mobiles, like unbranded/fake/non-IMEI (International Mobile Equipment Identity) handsets, can pose serious threat to national security. "Around five crore mobile handsets are traded in the second hand mobile market every year in the country, without ascertaining the identity of the customers. We would be creating awareness among people to sign up a sale deed with the second-time user so that the person can be tracked down in case of any security issue," Mohindroo said. Indian Cellular Association (ICA), the apex body for mobile industry players barring the mobile operators, also appealed to both customers and trade to abstain from purchasing and indulging in the transaction of unbranded/fake/non IMEI handsets. "The Department of Telecom has directed to bar services to illegal or unbranded handsets by November 30, 2009. Such unbranded devices, which either possess no IMEI numbers or invalid/cloned IMEI numbers, pose a serious threat to national security, as these are untraceable devices," Mohindroo said. According to Mohindroo, there is a clear directive from the government directing operators not to process and reject calls from mobile handsets with IMEI numbers not available in the updated database or without IMEI numbers from November 30, 2009. "The directive is equally applicable to all post paid and pre paid users of mobile services," he said. Mohindroo said that with the ban on these unbranded mobiles, the market share of low-cost handsets is likely to increase. "At present low-cost handset have a market share of 15 percent as against 20 percent cornered by unbranded handsets. Once these non-IMEI handsets vanish from markets, the small players are likely to gain," he added. According to ICA, the average selling price of mobile handsets has come down from 5000 to 2500. "Around 92 percent of handsets have a price tag less than Rs, 6000, while 73 percent cost less than 3000. With higher mobility penetration, the low-cost handsets are bound to thrive," Mohindroo said.