The headline in today’s Times of India reads – Chinese mobiles sans IMEI won’t buzz from Monday. What’s this all about? Mobile carriers in India will be required to hit the kill switch and shut off service to all mobile phones that do not have (or do not immediately obtain) a true International Mobile Equipment Identity (IMEI) number. The deadline for compliance is midnight November 30, 2009 (tonight). Otherwise it’s no service for you.
IMEI is a unique international standard identification number assigned to every mobile handset. Many counterfeit (brand name knock-off) phone manufacturers don’t bother to include an IMEI number or they simply assign a phony number.
Counterfeit "Shanzhai" iPhone
For months now India has been warning users of counterfeit phones (a.k.a. bandit phones or the Chinese term “Shanzhai ji”) that they must register their bandit phones and obtain a valid IMEI number. This campaign has been dubbed the Genuine IMEI Implantation Programme (GII), and it’s being carried out by Mobile Service Providers’ Association (MSPA) of India across the country. Many bandit phone owners have been overwhelming GII registration centers and the MSPA estimates that some 25 million bandit phones will go dead tomorrow.
By midweek, the MSPA will coordinate with all carriers in India and run a cross-reference of all legitimate IMEI numbers. If the mobile user does not have a valid IMEI, the mobile carrier must shut off service for that number.
Why are India’s telecom authorities taking this action? Money, control and the stated reason – security. The “bandit phones” or “Shanzhai ji” phones are manufactured without the normal telecom approval and testing protocols required by virtually every country. In addition, legitimate manufacturers must pay testing/licensing fees and taxes to authorities. Bandit phones circumvent these pesky taxes/fees.
Security is the primary reason India is forcing compliance with a valid IMEI number. The absence of an IMEI makes it next to impossible to trace mobile calls and identity users. In recent terrorist attacks in India, militants used non-traceable mobile phones to communicate and coordinate their actions.
The China Shanzhai Connection
Most of the low-priced counterfeit brand phones (without valid IMEIs) are manufactured in China. Chinese citizens are by far the biggest users of Shanzhai phones. There’s no way to track the number of Shanzhai phones presently in use in China, yet the total likely exceeds 100 million. India is not far behind with some 50 million in use.
While many counterfeit phones do not have valid IMEIs, some of these handsets do have the required 15 digit code. Not too surprisingly, China’s authorities do not impose rigid intellectual property protections. Consequently, there are a number of “clone phone” models that can be legally sold in China, but not internationally due to the Chinese manufacturers’ blatant imitation of another manufacturer’s trademarked model. Legal Shanzhai phones are in the minority as bandit manufacturers prefer to go rogue avoid fees/taxes and any unnecessary scrutiny.
Read more background on > Apple going after Shanzhai manufacturers
It will be interesting to see if China’s Ministry of Industry and Information Technology (MIIT) opts to follow India’s lead. I don’t expect that China will be so aggressive in quashing counterfeit handsets. For more background on Shanzhai culture and bandit phones, read > https://iphonasia.com/?p=7949
Shanzhai (bandit) phones should not be confused with brand name phones sold through grey-market channels. There are about 2 million real iPhones with vaild IMEI numbers in China. China Unicom will grant amnesty to any grey-market iPhone owner who wants to become a Unicom subscriber and upgrade to WCDMA 3G speeds (most are now on China Mobile’s EDGE 2G).
It seems that the Indian carriers have been warning their customers for months and even sending them text messages warning them to come in and register their “bandit” phones to get legitimate IMEI numbers… at a cost of just over USD 4.
We’re already getting comments on our site from people who’ve lost service, but it seems more of a case of “snoozing and losing” than anything else. Or perhaps the update price was prohibitive for some.
There is a solution, and we’ll be publishing the article shortly which I’ll try and update you on.
Tai-Pan
http://www.shanzai.com
@Tai-Pan thanks. While we may have a slightly different viewpoint on the merit of Shanzhai goods, I appreciate your site http://www.shanzai.com and the insights that you’ve provided to readers.
For your readers who are interested here is the link to tell them how to get their Indian shanzhai phones working again:
http://www.shanzai.com/index.php/market-mayhem/news/491-validate-your-indian-imei-number-in-15-minutes
Dan,
Yes, shanzhai is a complicated subject, and its also one that’s evolving. We’ve decided to create this site that focuses solely on that area because we believe that its not merely a trend but a business model that will only become more and more important in a global economy. Yes there is a bad element to it, but there is also an innovative side that usually comes to the fore of the more mature enterprises that often started as pure copycat players.
The other big idea we try to get across is our belief that actually many Western businesses practice a form of shanzhai/copycat as well but thanks to superior marketing and packaging they often get away with it… Google and Walt Disney being our favorite examples.
I’m not sure if it would change your mind but our article “Busting a few shanzhai myths” found here:
http://www.shanzai.com/index.php/market-mayhem/8-op-ed/426-busting-a-few-shanzhai-myths
Might give you some food for thought.
Cheers,
Taipan
http://www.shanzai.com