Abacus Wealth Management

Safaricom Complies With Directive to Switch off Counterfeit Phones

Through a press release posted on Safaricoms’ website, dated 1st October 2012, Safaricom Limited has confirmed that it has completed the blocking of all counterfeit mobile phone handsets on its network.

Safaricom indicated that the mandatory exercise which begun at midnight on 30 September 2012 had an impact on over 680,000 customers out of its 19.1 million subscriber base. Customers hardest hit by the switch off are those in areas around Nairobi, Rift Valley, Central and Eastern. Counterfeit phone users in these areas accounted for more than 60 percent of the targeted counterfeit phones.

Safaricom CEO, Bob Collymore said, “We deeply regret the inconvenience and anxiety that this exercise has caused amongst our customers. We realize that they have little to do with presence of these counterfeit devices in the country and it’s unfortunate that they have had to shoulder the negative consequences of the same. In order to mitigate the inconvenience we have contacted all affected customers and provided them with the option of purchasing affordable genuine phones or redeeming their Bonga Loyalty Schemes Points for new handsets.”

Mr Collymore further added that for the switch off exercise to be successful, all operators have to play their part and diligently block the counterfeit phones devices based on lists they receive from other networks. He also called for more support to Communications Commission of Kenya (CCK) by related Government agencies to block entry and sale of the counterfeit devices and to step up prosecution of those who engage in the illegal importation and sale of counterfeit phones.

He further called on the government to reconsider the impending decision to impose VAT on mobile phones, saying the move would make genuine mobile phones unaffordable to the majority of Kenyans and instead fuel the black market trading of counterfeits.

Safaricom, through the press release, stated that it was too early to assess the financial implications of the blocking exercise.

Industry regulator, CCK had issued the switch off directive compelling all service providers to ensure that counterfeit phones were blocked from accessing Kenyan mobile networks with effect from 30 September 2012.

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