IMEI implant: Rs 4000 mn opportunity

What started as security concern, turned out to be opportunity in disguise. The ban on the use of handsets not having proper IMEI International Mobile Equipment Identity) number has turned to be Rs 4000 mn opportunity for the telecom companies in India.

The cost of IMEI number implant per handset is Rs 200. As per industry estimates, around 20 mn mobile handsets, operational on various network, does not have proper IMEI number. Considering the huge number of handsets, the market size turns out to be Rs 4000 mn.

As per the government directives, handsets with false IMEI number have been blocked from mid-night of November 30, due to security reasons.

IMEI number is a 15-digit unique number which enable the service providers in tracking or blocking mobile phone if it is lost. The operator can also track the handset user by using Global Positioning System (GPS). The issue was raised as security agencies were not able to trace mobile handsets after terrorists attack.

None of the telecom operators wants to miss the bus. Some of them were calling subscribers, and inviting them to get a replant after paying a nominal fee. Mobile handset retail chain including Mumbai based The Mobile Store, has also jumped in the fray and are offering implant services.

Arti Mehta, Chief Marketing Officer, The MobileStore said that “The IMEI number is used by the GSM network to identify valid devices. We have successfully done over 30,000 IMEI implants at our 160 stores in 60 cities. IMEI number is an important tool for the handset tracking. This is a step in the right direction to support national security program.”

The telecom operators are refraining to comment on the issue terming it as a regulatory issue. People close to the development confirmed that preparations started much before the deadline, considering the total market size of implant.

The development had come as a boon for small mobile traders as the demand for low-priced branded set had suddenly soared in the market. Those who have failed to get the valid code are now approaching the shops to purchase cheap handsets of branded companies that had suddenly increased the demand, the traders said.