Updated : Fake Handsets Posing Threat To Mobile Majors !

[Honest 836]

Fake handsets posing threat to mobile majors

26 Sep, 2008, 0000 hrs IST, ET

Next time you buy a handset be careful of the model number. You could easily end up paying a bomb for your Nokia dream handset, which is actually a fake. And by the time you realise that your new mobile N95 is actually N95 ‘g’, it could be too late.

Over a million fake handsets are being sold in India every month and branded mobile makers, including Nokia, Sony Ericsson and Samsung, could be losing a whopping Rs 400 crore to duplicates, according to the Indian Cellular Association (ICA), the representative body of mobile manufacturers, distributors and retailers.

This translates into annual loss of over Rs 4,800 crore, nearly a billion dollars, and the number is growing by the day. Market share of handset vendors is adversely affected due to duplicate devices.

Fakes of batteries, earphones and chargers are also available in plenty in India. The sale is done through not only local mobile phone shops but also some specialised retail chains, who stock them discreetly.

Duplicates are sourced from China and Taiwan and don’t have even half the features that they proclaim. Model name and numbering on handsets are almost similar to that of the established players. Like a fake of Sony Ericsson W960 is available as Soni Ericsson W960.

India is adding over 9-million wireless subscribers every month. Buyers in tier II towns and villages, who are driving the current wave of subscriber addition, are falling easy prey to duplicates because of lack of awareness as well as lower prices.

“A large chunk of duplicate handsets are being sold in small towns. The pricing is less than that of the originals. They also claim to have features that are actually not present in the handset. So customers end up being duped,” ICA president Pankaj Mahindroo told ET.

Every genuine handset has an international mobile equipment identity (IMEI) number, which is unique. It is printed on the phone underneath the battery and is used by the GSM network to identify valid devices.

Duplicate phones, on the other hand, come without an IMEI number and, of course, without a bill and warranty. Further, they don’t have the ICA hologram, which stands for quality and reliability.

“Cheap duplicates from China are a security risk. The government should keep taxes and duties down to encourage sales of originals. When government increases taxes and duties, the grey market gets a boost and fakes have an easy time,” a top Nokia India official said.

“The industry is losing nearly Rs 400 crore every month because of the sale of fake devices. The numbers have gone up substantially ever since the Chinese government delicensed the manufacturing industry,” Mr Kapoor said.

Specific absorption rate (SAR) is an indication of the amount of radiation that is absorbed by body while using a cellphone. “Branded cellphones comply with global emission norms but duplicates pose health risks,” he added.

[Sadikk 301]

Really there should be some really tough guidelines aout these handsets.

or else they will eat up market shares of biggies, considering the amount they spent on R&D. ths shoud be stopped.

Also government can earn huge revenues out of this if proper guidelines.

[Ramchi 0]

If you buy from some small shops claiming to be Mobile solution experts, this is what going to happen.

One of my colleague got N95 fake did not realize until I pointed out! She got that phone from her closes friend who sells electronic goods!

Just dont trust when it comes to business that I know my friend wont cheat and that shop will sell only original stuff etc....

Go to proper show room (Nokia, SE etc...) ask them to open the package infront of you, even if that person is known to you for 1000 years!

Just don't trust anyone in Business.

Edited September 26, 2008 by Ramchi

[Harshal 11]

While I completely agree that such phones exist, I seriously doubt that it is possible to dupe someone into buying a duplicate handset as the real one. I think it is the cell phone makers lobby that is trying to curb the menace of Chinese phones by creating such false propaganda, as they clearly see the Chinese cheap phones as a threat not only to their market share but also to their margins.

The accessories is a different story and I can very much see duplicates being passed on as originals.

[Honest 836]

And to add with my dear friends, one should never purchase the handset whose box is not sealed. Always insist to purchase a sealed pack handset and open the seal in front of you. You can also check for the original's holograms on the box.

Regards.

[Honest 836]

Govt plans to ring in fake-mobile count

Economic Times l 30 September l Mumbai

Intelligence agencies along with the department of telecom (DoT) and the ministry of consumer affairs (MCA) are planning to undertake audit of duplicate mobiles and take stringent steps to curb the import of fake devices, which are posing a threat to national security.

These duplicates, which cannot be tracked due to the absence of a valid international mobile equipment identity (IMEI) number, are being used by anti-national elements as well as unsuspecting customers. The increased emphasis on IMEI number and the drive to track duplicates comes in the wake of serial blasts in Jaipur, Bangalore, Ahmedabad and Delhi in the past few months.

“The government is planning to conduct an audit of over one crore subscribers who are using duplicate handsets,” sources told ET. To begin with, import of handsets are being checked more stringently. Low-cost Taiwanese and Chinese handsets are flooding India, which is adding over 9 million subscribers every month. Till now, it was not necessary to declare the IMEI number at the time of shipping devices into India.

Now, all traders, manufacturers, importers and custom house agents importing mobile handsets have been asked to declare IMEI number, as appearing on the mobile sets, at time of filing of the bill of entry (a list of goods received at a customhouse as import or for export), said sources. This directive from the Commissioner of Custom (Import) was issued on September 12 and came into immediate effect.

“Intelligence agencies are concerned because they can’t trace subscribers using duplicate handsets. These are sold without any invoice or IMEI number. Also, multiple sim cards are used on some of these handsets, making it difficult to track the user,” said sources. While Nokia, Sony Ericsson, Motorola as well as Samsung import handsets into the country, the main cause of worry are the unbranded handsets. It has been estimated by the Indian Cellular Association that nearly a million users are buying these duplicate handsets every month, causing loss of around Rs 400 crore to the branded players.