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Vodacom cuts off pre-RICAed SIMs

Nicola Mawson
By Nicola Mawson, Contributing journalist
Johannesburg, 15 Aug 2011

Almost a million SIM cards, which have been registered in terms of South African law, but not activated on Vodacom's network, will be cut off as the operator seeks to clamp down on fraud.

RICA - or the Regulation of Interception of Communications and Provision of Communication-Related Information Act - was brought into effect in the middle of 2009, and aimed to cut down on crimes committed with the use of cellphones.

Under the law, everyone with a SIM card had to provide proof of address and identity, by midnight on 30 June, to have the SIMs registered on databases that are maintained by the mobile operators.

Subscribers who failed to register their cards were cut off from networks on 1 July. By the cut-off date, the bulk of SIMs in circulation had been accounted for, after operators forked out close on R1 billion in implementing the law.

However, there had been reports that pre-registered cards were available for sale from Pretoria-based outlets for around R20. The reports resulted in the departments of communications and justice calling an press conference.

During the press briefing, deputy communications minister Obed Bapela admitted the department did not know how many pre-RICAed SIMs were in the system.

Bapela said operators would audit the RICA database and provide it with figures of how many SIMs had been bulk registered, which would allow it to investigate whether these cards have been sold without being re-RICAed.

New measures

The department was set to meet with operators by the end of July to determine how many SIMs had been bulk registered.

The network operator says it has also put a in place that will see SIMs suspended if they are not activated within 30 days of being RICAed.

Vodacom is also looking into all cases where several SIM cards have been registered in the name of a single customer and will verify company details with the Companies and Intellectual Property Commission (CIPC).

Companies that try to register numerous SIMs will also be verified through the CIPC, says Vodacom.

Portia Maurice, chief corporate affairs officer, says: “By taking these actions, we're closing down avenues that criminals could use to hide their identity. We'll continue to engage with the relevant authorities as they implement additional measures to stamp out fraudulent activity.”

Anyone who fails to register their details, or provides fraudulent information, faces a fine, jail time or both.

Police investigation

Robert Madzonga, MTN SA's chief corporate services officer, points out that people who register cards and then give them to someone other than a family member must go through the process again.

Madzonga says people who buy or sell SIM cards are not adhering to this requirement. “We, therefore, believe that, as a matter of law, it is an issue that should be investigated by the South African Police Service.”

MTN is aware of a police investigation, but Madzonga did not provide any further details on what steps are being taken. The company also did not indicate what its probe into its database uncovered.

Cell C did not respond to a request for information as to what its database investigation uncovered.

At the end of June, Cell C had 99.99% of its contract and 97% prepaid subscribers registered. MTN had 99.5% contract and 97% prepaid customers registered, while Vodacom reported 98.98% of its contract and 95.12% of its prepaid base had registered.

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