TELECOMS: Shedding light on Russia’s shadowy phone trade

Issue Number: 
176
Author: 
By ALYONA PRIKAZCHIKOVA / Special to Telecoms in Russia
Published: 
2001-05-11


How can you distinguish a legally supplied cell phone from a "gray" one? Numerous dealers have flooded the market with handsets of different origins and characteristics and all of them appear to have authenticity certificates.

There are two basic channels by which "gray" cell phones penetrate the Russian market. Foreign telecom companies represent the major one, even though this may surprise them greatly.

Cell-phone handsets are frequently provided free in the West, where consumers often pay only for the service. However, there are often instances when a foreign telecom manager buys a certain number of handsets from a manufacturer and fails to find the equal number of customers in his licensed area. What does he do? Without thinking about the repercussions, he sells the superfluous

I’m not accusing this foreign manager of any terrible crime; all I want to say is that he does not care about how and where the handsets he sells will be used. In fact, he does not have the right to sell handsets standalone, i.e. without the service, and in order to make such a deal he must find a shadowy dealer who will buy the handsets. Then they are resold abroad.

Once in Russia, such handsets are subjected to a "laundering" procedure. The foreign operator’s logo and SIM, or SP electronic protection, are removed from them and a new "passport" is issued. Of course, these handsets bypass the official export/import customs channels.

The second channel is not very different from the first. A foreign dealer quite legally purchases a batch of handsets from a manufacturer. As long as demand is high on the market, the dealer is happy, but as it abates he starts looking for ways to get rid of leftovers. One way is to sell them at low prices in a foreign country.

Naturally, "gray" handsets are much cheaper than those supplied to Russia via official channels, but buying a "gray" mobile-phone handset means forgoing warranty services and the possibility of upgrades, not to mention risking technical problems.

After examining a handset for traces of a foreign company’s logo and checking its certificate of authenticity, it is important to verify its serial number, or IMEI — its International Mobile Equipment Identifier.

The IMEI is a unique 15-digit number issued by the manufacturer, which is embedded into the handset’s electronic memory, printed on the original box, and sometimes on the handset itself, under the rechargeable battery. How can you check the IMEI? The easiest way is to dial *#06# and compare the number on the display with the number printed on the box.

The massive supply of "gray" telephones to Russia has generated increasing concern among leading international producers of mobile equipment. On March 15, representatives of Nokia, Alcatel, Motorola, Siemens and Panasonic issued a joint statement proposing measures to clear the Russian market of "gray" handsets.

First, they proposed to establish a closer and more efficient cooperation among Russian telecom dealers and the controlling state agencies. Second, they proposed to launch a massive campaign to inform consumers about the consequences of purchasing uncertified handsets. Furthermore, they introduced a new system of certification and labeling for handsets exported to Russia, made available on their respective Websites.

To a certain extent, blame for the unpleasant situation with "gray" handsets lies with the Russian Ministry of Communications. Certification of new handset models takes as long as two to three months, and while authorized dealers are waiting, shadowy suppliers rush in to serve eager consumers.

It is well known that new handsets can appear in Russia as much as three months before appearing in their country of origin. But fortunately, things have begun moving in the right direction, as the Ministry of Communications is expected to reduce the certification period to one month.

However, as things stand, all mobile-telephone equipment needs to be certified by the State Committee on Communications, as well as Rostest, the state testing inspection agency, and government health officials. Moreover, every handset sold in Russia has to carry an SSE sticker, proving it is a certified piece of electronic-communications equipment.

ON THE NET:Most handset manufacturers offer clues on how to identify legitimate imports from illegal ones. Here’s a list of company Websites where you can find more information: • Motorola www.motorola.ru• Alcatel www.alcatel.ru• Panasonic www.panasonic.ru• Nokia www.nokia.com.ru• Siemens www.siemens.ru• Philips www.philips.ru

• Samsung www.samsung.ru• Benefon http://194.100.11.38/ benefon/RussiaNew certification and marking rules introduced by Motorola beginning Jan. 1, 2001 can be found on the company’s Russian-language user-support Website.

Specifically, the IMEI field now includes the letter "U" in the Latin alphabet, indicating that the handset has been manufactured for Russia only. The presence of this symbol guarantees that the handset is authentic, properly certified, has a Russian-language menu and user manual, and bears a valid warranty coupon.

The single-digit number that immediately follows the "U" symbol confirms that it has SSE certification. Furthermore, the company’s Website contains a list of Motorola handset models that are certified for export to Russia. There, you can also find the handset’s date of manufacture by way of its MSN serial number.

On the same date, Jan.1, 2001, Alcatel introduced a special bright yellow warranty coupon with text printed in Russian for its mobile equipment exported to Russia.

In addition to that, a legally supplied Alcatel handset should carry an SSE certification sticker, have a Russian-language menu and a certificate of permission issued by the State Communications Inspectorate and State Standards Office.

Furthermore, it should carry a code, something like BE41C-1*ALRU 1, where "BE" and the immediately following number indicate the handset’s model. The number "1" is a model descriptor; the letter "C" indicates Russification (English-language models have STD instead of C); "*" is for the handset’s color; "AL" means Alcatel, and "RU" means that it was made for Russia.

The new Alcatel series OneTouch bears the indicators "BE4" and "BE5" and the unique identification number "BE4(BE5)C-1ALRux." For more details, visit the company’s Website, where you can find a list of authorized dealers in Russia.

USEFUL WEBSITES:There are many places online to research the authenticity of your mobile telephone. The URLs compiled below should be a good starting point.• www.3ton.kiev.ua/besik/imei/index.shtml – find a GSM handset’s model by its IMEI;• forum.ixbt.com/ubb/forum16/html/001333.html – list of companies selling "gray" handsets;• telephone.com.ua/info/imei/imei.html – find a GSM handset’s model by its IMEI;• admiral.narod.ru/a3_imei.htm – an example of IMEI decoding;• mobilnic.narod.ru/phone1/phone_imei.htm – an example of IMEI decoding;• mabila.narod.ru/nokia.htm – IMEI decoding for Nokia handsets;• corbofos.chat.ru/codes/nokiaother.htm – IMEI decoding for Nokia handsets;• www.sotaland.ru/codes/phones.phtml – codes for mobile phones, and other useful information;• alliance.com.ua/secrets/sag_mc930.htm – secret codes for Sagem handsets;• www.mobilerussia.ru/articles_detal.phtml?article=34 – secret codes for Alcatel handsets.

In addition to its Russian-language user-support Website, Panasonic has launched an online GSM-club, where registered users can gain access to full-fledged technical support.

But some companies have not yet taken additional measures – besides certification and Russian-language manuals – to protect their Russian customers from "gray" handsets.

Samsung and Benefon have limited themselves to placing lists of their authorized dealers online. Incidentally, Samsung has introduced service coupons, but has not placed this information on its Website. Philips has limited itself to introducing – also starting from January this year – SSE and RST certification marks.

In the near future, Nokia plans to publish on its Website a list of authorized retailers in Russia. In addition, Nokia mobile-phone equipment distributed in Russia will be marked with SSE certification stamps and a barcode.

Ericsson, beginning from the T28s model, provides special warranty coupons for its handsets supplied to Russia. Siemens handsets can be checked for authenticity only by their IMEI – dial *#06#, and if the display shows "Blokir.vykl" in Cyrillic letters or "Unbarred" in the Latin alphabet, it means there was tampering with the handset’s electronic mechanism.

Alyona Prikazchokova is a journalist for Upgrade magazine, where she originally filed this article.

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