labels: industry - general, telecom
Every third pre-paid mobile user scratched offnews
14 September 2006

In pursuance of the new security regulations brought into effect, the telecom companies have switched off one in three pre-paid mobile connections they have verified so far, numbering 4.8 million.

Figures submitted by the Apex Advisory Council for Telecom in India to the department of telecommunications (DoT) show that till September 8 the companies had de-activated 4.8 million of their 13.5 million pre-paid mobile connections after finding them based on false identities.

Since pre-paid subscribers constitute up to 90 per cent of all mobile users, this could punch a sizeable hole into telecom companies' revenues, as well as into the subscriber base that is growing by 5-6 million a month.

Bharti Airtel has struck 2.8 million of its 6 million subscribers off its rolls; Reliance Communications 1.04 million of 2.3 million and Hutchison-Essar 681,000 of 1.84 million.

In the first phase of the verification drive, telecom companies have checked up on 18 per cent of their pre-paid subscriber base of 72 million.

The DoT has directed telecom companies to run a check on their user bases till May 2006. For subscribers signing up after that date, verification is mandatory.

The issue came to a head when the Haryana police discovered a customer had taken multiple connections and was using them for criminal activities.

The industry is, however, divided. The Tatas are pushing for physical verification of all subscribers. But the Cellular Operators' Association of India says it will physically verify only one in 10 subscribers and will check the papers of the rest.

DoT has asked for 60 per cent verification by end September.

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Every third pre-paid mobile user scratched off