Uganda plans to phase out fake handsets, unregistered Sim cards

Seven years into the rollout of Kenya’s revolutionary mobile transfer service M-Pesa by Safaricom, regional banks are increasingly considering mobile phones as an important distribution channel. TEA Graphic 

 

By ISAAC KHISA, The EastAfrican

In Summary

• Reports indicate that 30 per cent of the handsets in use in Uganda are counterfeit, costing the government over Ush15 billion ($5.75 million) in lost revenue.
• The government had committed to switch off fake phones and unregistered Sim cards as part of efforts to help law enforcement agencies to fight crime.
• UCC said that it acquired $800,000 equipment to facilitate the switching off of counterfeit handsets but has failed to make any progress due to the absence of an enabling law.

Uganda is drafting a law that will enable the communications industry regulator to switch off counterfeit handsets, a programme that has been in limbo since July 2013.

The government had committed to switch off fake phones and unregistered Sim cards as part of efforts to help law enforcement agencies to fight crime.

Jimmy Samanya, Permanent Secretary in the Ministry of Information and Communications Technology, told The EastAfrican that the ministry was drafting a law that would form a legal basis for the registration of Sim cards and switch-off of counterfeit phones.

“We are developing regulations to streamline specific aspects of the communications sector, and one such area is quality of equipment used, in this case the handsets,” Dr Samanya said.

He said the ministry has involved the country’s Attorney-General’s office in drafting the regulations and is waiting to submit the draft to the Cabinet and then parliament for approval in November.

The communications sector is regulated by the Uganda Communications Commission Act, 2013.

Godfrey Mutabazi, executive director at the UCC, said that they acquired $800,000 equipment to facilitate the switching off of counterfeit handsets but have failed to make any progress due to the absence of an enabling law.

READ: Uganda SIM card registration in final stages-UCC

Reports indicate that 30 per cent of the handsets in use in Uganda are counterfeit, costing the government over Ush15 billion ($5.75 million) in lost revenue.

Globally, market sales of counterfeit and substandard cell phones cost economies over $6 billion a year, according to the latest report by the Mobile Manufacturers Forum, an international association of telecommunications equipment manufacturers based in Belgium.

“Our research predicts sales of around 148 million counterfeit or substandard mobile devices in 2013 through visible retail sites, with many more expected to be sold in unofficial retail outlets, online auction websites and in local black markets,” says the report.

UCC spokesperson Fred Otunnu said that the regulator will soon issue directives to telecommunications companies to deactivate unregistered Sim cards.

UCC officials say the move will help security agencies to track criminals who use unregistered devices for illegal activities, and protect consumers from substandard handsets.

Kenya switched off 1.5 million counterfeit handsets in 2012 and 2.4 million unregistered Sim cards a year later. Tanzania switched off 485,867 unregistered Sim cards, whereas Rwanda switched off 650,000 unregistered Sim cards.

READ: Region rolls out sim card switch-off