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    China Business
     Feb 3, 2006
China's texters to lose anonymity
By Ralph Jennings

BEIJING - A plan to register millions of prepaid mobile-phone users in China will bring new inconveniences to subscribers, including foreigners, but could offer opportunities for foreign-invested telecommunication companies, industry experts say.

The Ministry of Information Industry is working on a way to register an estimated 200 million mobile-phone users who pay in advance for services such as China Mobile's Shenzhou or GoTone


accounts, said Zhao Zhiguo, deputy director of the ministry's telecommunications administration.

Mobile-phone registration will be done "in a fair way", Zhao said in late December. He did not specify registration procedures or a timeline, but he said it could unfold some time this year. Chinese authorities will register prepaid users to help the country fight fraud, text-message spam and attempts to attend political gatherings, state media say.

Shanghai has piloted a registration system since September 1 after a Chongqing pilot program that expired in 2003. The state-owned Shanghai Daily said in December that the nationwide campaign could take effect this year.

Telecom analysts expect the dominant mobile provider, China Mobile, and runner-up China Unicom to register users by copying foreign passports or Chinese citizens' identification cards, as China Mobile does now for new GoTone accounts and some youth-targeted M-Zone discount calling plans. They do not know what other information will be required or whether the government will close down the countless middlemen who now buy subscriber identity module (SIM) cards in bulk and sell them to the public with no questions asked.

The complex registration system is expected to take shape in phases, starting with a media campaign to warn users that they must register or have their service cut off.

Spam is thought to be an important reason for forced registration. Unsigned mobile-phone text ads for air tickets, store openings and class enrollment peeve ordinary Chinese mobile users, who cannot block phone message senders as they could e-mail spammers.

Anonymous users also send fraudulent text messages involving "phishing" or other scams, such as a batch that went out in the first week of October seeking people's bank-account details by claiming to represent the bank. Craig Watts, a self-employed consultant in Shanghai who got the bank-fraud message, said freedom from unwanted text messages would outweigh the "hassles" of registration. "When I heard the news, I thought wow, that's not such a bad thing," Watts said.

Shanghai Daily said in December that the registration would also let authorities figure out who sends pornographic images or "politically charged" content. Police in Beijing say they cannot track the users of unregistered mobile numbers.

About three-quarters, 74%, of China Mobile subscribers are unregistered. The rest are billed monthly. But telecom analysts say the registration system, whatever it turns out to be, will inevitably cause minor complications that could affect foreigners in China as well as common Chinese users.

Foreigners stationed in China must make time to register their numbers, said Mark Natkin, managing partner of Marbridge Consulting in Beijing, who does not think the system will be unduly inconvenient.

"I think there's a high likelihood that registration stations may be set up at those mobile-phone stores, where consumers also buy SIM cards, that can accommodate the registration terminals and connect to the registration network," Natkin said. "Many operate during evenings and weekends."

Later, the government could access registration databases to trace anyone doing business in a questionable legal area, analysts say. "It's safe to assume that the Chinese government will have whatever access it needs to this information to help with investigations," said Dave Carini, business development manager with Norson Telecom Consulting in Beijing.

Illegal deals would probably be spotted before other targeted content, said Eric Harwit, Asian studies professor at the University of Hawaii.

"I don't think the government can really sort out the many billions of SMS messages for passages that might have destabilizing political content, though it might be easier to catch discussion about, say, drug trafficking or other blatantly criminal activity," Harwit said. "But registering people would have a chilling effect, in that people would know they could potentially be linked to illegal messages and activities."

Last year, the China Banking Supervision Committee joined the ministries of Public Security and Information Industry in setting up an SMS (short message service) fraud-filtering system. Police are also letting phone users report fraud on a special website. Analysts say it's too early to tell how well that system is working.

Telecom consultants suspect mobile-phone providers could also sell the registration databases, illegally but with a wink, to commercial spammers. A detailed database could let spammers or con artists target foreigners or the employees of a specific company.

"I wouldn't rule out commercial uses either, though China Mobile is unlikely to recklessly sell sensitive information on its high-end customers, given how much effort it expends to keep them happy," Carini said.

Foreign companies may also want to bid for the registration database design, Natkin said. He said foreign-based system integrators and hardware-software "solutions" providers might offer packages to modify billing and settlement systems, as well.

"You need to have a system that will handle and track all of that," Natkin said. "It's an opportunity for companies that sell that type of equipment, software and services."

Telecom providers, if required to monitor their registered users for illegal text messages, may also seek foreign firms to design a system to check every message fast enough to avoid delays in sending messages, especially during holiday peaks, said Chris Han, a senior analyst with Norson. Phone companies are decentralized by province, Han said, so potentially China Mobile and China Unicom branches throughout China will want unique message-check systems.

Ralph Jennings is a Beijing-based foreign correspondent.

(Copyright 2006 Asia Times Online Ltd. All rights reserved. Please contact us for information on sales, syndication and republishing .)


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