Zubair Yaqoob
Karachi
Cellular Mobile Operators (CMOs) have blocked nearly 58 million handsets of different brands on the directives of telecom authority due to invalid IMEIs and non-payment of taxes by the users, which ultimately cost the customers and the growth of the mobile broadband users in the country.
According to the industry, telecom operators were receiving aggressive directives from the telecom watchdog to disable the handsets at large number since the start of 2020 under the rules of Device Identification, Registration & Blocking System (DIRBS) on all Cellular Mobile Operators. The data available to the scribe said that as many as 13 million handsets were blacklisted as of 15 January 2019 whereas over 45 million handsets were blocked till the mid of January this year. Amongst these, 15 million have invalid IMEIs, while 30 million are handsets surprisingly with valid IMEIs but taxes have not been paid on these within the 60 days stipulated time period.
The handsets mainly blocked were brought into the country through imports however the new or reconditioned handsets were blocked for functioning on the local networks due to lack of awareness of the system among the users and higher duties on the handsets. According to Pakistan Telecommunication Authority (PTA), a customer is liable to pay a tax of Rs. 17,650 on the handset with prices ranging from $350 to $500. The amount of tax was set even higher level at Rs. 31,520 for the handset with prices of above $500. Industry sources said not only the exercise of blocking handsets perturbed the smartphone users at large but it is also hampering the growth of their mobile broadband services in the country adversely.
They told the scribe that the amount of tax set for various handsets of various brands are higher for their actual prices hence the users of the smartphone failed to make payments on the account of taxes. It is interesting to note that Pakistan is the only country that has implemented DIRBS. None other digitally developing country has such system in place. It will eventually slow down the digitalization process of the economy and hence negatively impact Prime Minister’s Digital Pakistan Vision.
Blocking of smartphones has eventually led to a slowdown in data, mobile internet, and digital adoption amongst mobile customers across the country, they further added. Industry expert suggested that the government should reduce tax slabs on all categories mobile phones brought into the country to encourage, penetration of smartphones. As more devices are registered, the government will be able to increase its pool of taxes.
This will also curb the menace of street crimes in the country as the government will have enhanced the availability of data regarding mobile phones. Out of 164 million users of cellular operators, 74 million people are the users of broadband internet in the country as per PTA statistics. The penetration of mobile broadband stands 35 percent despite the pent-up demand of the 3G/4G users exists in the country depicting lesser than expected adoption of the technology due to various issues including DIRBS.
