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10 March 1998

Ministry against pre-paid cellular cards

Navika Kumar  
NEW DELHI, Mar 9: Cellular operators seem to have got on the wrong side of the government yet again. The Home Ministry is worried about the security implications of selling pre-paid cell-phone cards to people without ascertaining their proper identity. The Ministry has written to the Department of Telecommunications (DoT) expressing its displeasure with the present identity authentication process followed by cellular companies.

The DoT on its part has served a notice to the Cellular Operators Association of India (COAI) recently asking them to take steps to ensure that its members verify the identity of pre-paid phone card buyers. Apart from the home ministry, the Department of Revenue in the Finance ministry has also expressed its reservations about the sale of pre-paid cash cards as it leaves a loophole in identifying cell phone owners as potential income tax payers.

According to informed sources, the Home Ministry is especially perturbed about the situation in Delhi and Mumbai where these services arean extreme success. Their fears are based on the suspicion that these services are being used extensively by the underworld in Mumbai. In Delhi the problem has arisen owing to suspected power broking between political bigwigs on account of elections which is mainly done on cell phones which has resulted in the peaking of airtime usage in the capital.

The Home Ministry has expressed concern over the possible implications of such activities on the security arrangements in the these cities. While for a normal subscription for a cell phone subscribers have to give proof of their identity and their addresses which are later authenticated by the cellular operating companies, pre-paid cards can be purchased over the counter without any elaborate checks being carried out. In case the Home Ministry or other agencies wants to track the activities of someone, cash cards are a major hindrance in identifying the individual.

Cellular operators on the other hand are gearing up to oppose these directions served to themby the DoT.



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