Latin American Countries taking action against Counterfeit and Stolen mobile phones

Counterfeit mobile phones pose many threats. For consumers the risks include preloaded malware intended to get the users’ financial and personal information, the non-compliance with health and safety requirements, and poor performing devices that drop calls and have lower data speeds due to cheap and poor quality components. For governments, these devices avoid paying duties and taxes and cost governments billions in lost tax revenues. As a result of these concerns, several countries in Latin America have begun to take concerted action to block these devices from networks.

Colombia: 17 million irregular devices blocked to date

In 2013, Colombia introduced a system in which telecom operators had to validate, verify and control handsets operating in their networks based on their IMEI number (1) and upload the data to a centralized database under supervision of the Colombian regulatory authority CRC. An information campaign via national newspapers, radio and television, as well as  through their customer care centers was carried out to inform users about the need for registration of their mobile phones, as well as danger of their devices being blocked if not. Importers of mobile devices have to register the IMEIs of their products in the centralized database and only devices passing the IMEI cross check are then allowed in the network. 

The implementation was spread over several stages and with the system now fully implemented, Colombia has blocked more than 17.5 million devices since its inception, with more than 142 million devices now in the positive database. While not all of these 17.5 million devices were counterfeit devices, many undoubtedly were, particularly as many had invalid or duplicated IMEI’s. 

Brazil: 1 million irregular devices coming online per month 

Brazil has also adopted a formal system to avoid the activation of counterfeit, substandard and stolen handsets on the national networks. This system is called the SIGA Project and includes a digitalized central system for identifying and blocking irregular handsets based on IMEI identification. Irregular devices are those illegally sold in Brazil, including devices which have been smuggled, stolen, without agency homologation and/or without a valid IMEI number listed in the GSMA database. 

With the SIGA Project commencing operation for devices activated after 22 February 2018, 

irregular devices are now being blocked. According to Brazil’s regulatory authority Anatel, a warning text is being sent to the irregular devices before they are blocked. Older devices (activated before 22 February 2018) and data-only devices such as modems, which cannot receive the SMS warnings, are not included in the program. Despite this, telecom providers in Brazil estimate that up to 1 million irregular devices join the networks every month.

Argentina: 3 million irregular devices entering the country each year

A similar approach is planned in Argentina, where the government plans to block devices for which the IMEI has not been submitted to the national regulator Enacom. It is estimated that around 3 million irregular and counterfeit devices enter the country each year and that the Argentinian economy loses up to 1 billion US dollar to this issue. People who purchase a device abroad will have to declare the device to customs when returning to Argentina to be able to use it legally in the country. 

Conclusion

The examples of Colombia, Brazil and Argentina, all show that countries are committed to fighting the growing threats faced by counterfeit, stolen and smuggled devices. These devices cost the government billions in lost tax revenue, lessen the quality of service of their national telecommunication networks and expose consumers to the theft of personal and financial information and in many cases, to outright dangerous and inferior goods. 

———————————————

(1) IMEI is the individual identification number of mobile phones, registered in the international GSMA database

Resources:

For an explanation of Colombia’s efforts see: https://www.itu.int/en/ITU-T/Workshops-and-Seminars/20180723/Documents/5_Hugo_Romero.pdf

For information on Brazil’s program see: 

https://www.bnamericas.com/en/news/brazil-to-block-irregular-phones-despite-carriers-concerns
& 

http://www.grupoibrace.org.br/en/anatel-gives-one-more-step-for-blocking-pirate-cell-phones-in-brazil/

And for information on Argentina’s program see: http://www.thebubble.com/stolen-phones-to-be-blocked-argentina/