Developing Telecoms | China cracks down on telecom fraud with new prepaid registrations

21 May 2012

Industry News

LATEST NEWS:

Internet-free mobile Facebook, email and online chat apps platform launches... Indian telco giant taking steps into Brazil Green power solutions provider spreads into South Asia Cable agreement to bolster international connectivity in Iraq Lat Am giant looks to Netherlands to boost European footprint CSP unifying mediation systems across four Central American countries Thai operator secures wireless distribution agreement Financial services project reaching out to millions of Africans Fibre investment on the way in Algeria Android tablets gaining popularity in Southeast Asia Bharti seeking JV takeover as profits slide How an Alternative Approach to SIM Card Provisioning Helps Operators Cure t... Solar-powered learning initiative takes off in Uganda GSMA voices criticism of Indian licensing proposals Enhanced mobile broadband deploying across three Baltic countries Market developments lay the foundation for future growth in Iraq India Feels More Shockwaves from the So-called ‘2G Scandal' Overpriced broadband faces fibre challenge in Angola First commercial 4G services go live in Croatia VimpelCom sells Vietnamese assets TRAI advocates new operators entering 2G auctions Romania’s first MVNE launching imminently Indian tax change could provoke legal action from Vodafone Mobile growth slows in Iran as penetration reaches saturation point Thailand close to finalising 3G auction process Internet Exchange Points Spur Internet Growth in Emerging Markets Incoming fibre boosts investment prospects for Burundi 3G on the way in Djibouti, but competition is required Fibre, not privatisation, could be the answer for Africa’s fixed-line opera... Saudi incumbent looks abroad amidst heated domestic competition Orascom serves Algerian government with arbitration notice Kenya’s mobile sector recovering from slump Download deal aims at attracting Indian Android users

China cracks down on telecom fraud with new prepaid registrations

Friday, 10 September 2010 11:33 | James Barton

Attention: open in a new window.

A new registration system has been put into effect by operators across China as part of a drive to combat the increasing use of mobiles for the purposes of spam and telecoms services fraud.

The new regulations, which currently apply only to new prepaid accounts, require that customers identify themselves when they sign up, with a single customer limited to 18 different connections. The focus is on prepaid customers as operators are already able to identify contract customers easily; existing prepaid users will be required to renew their registration ‘in a gradual way’ without an interruption to their mobile services.

However, while the crackdown is purported to be beneficial to customers, detractors claim that it will compromise customer privacy, allowing authorities to ‘snoop’ on users.

The Ministry of Industry and Information Technology has not confirmed a deadline by which existing users must re-register, but 2013 has been reported as a possibility. Analysts estimate that once the registration system has been updated to cover existing prepaid customers, the details of roughly 300 million mobile phone accounts will need to be registered.

Similar crime-reducing measures in other countries have seen subscriber numbers drop dramatically. Both Mexico and Greece disconnected large numbers of prepaid subscribers as part of similar initiatives, and while there were widespread last-minute registrations, both markets saw an overall drop in subscriber numbers. The Chinese market’s sheer size could mean that even a relatively small percentage of accounts being deactivated could cause a similarly significant decrease in customer numbers.

Add this page to your favorite Social Bookmarking websites