JEDDAH, 4 May — The huge demand for prepaid mobile chips, especially among the expatriate community, has given rise to a booming black market, with some authorized distributors resorting to unethical practices to exploit the situation.
Some dealers are insisting that they would sell the SR200 SIM card only if the customer buys a hand set from them. Faced by this situation, buyers are increasingly relying on the black market where the rate is up to 30 percent more than the actual price.
The Saudi Telecom Company launched its prepaid chip card, SAWA, last Saturday.
The prepaid chip is being sold by 10 distributors, which have 70 outlets throughout the Kingdom. Customers not covered by these distributors can contact three designated banks: the Arab National Bank, Riyadh Bank and the Al-Rajhi Banking and Investment Corporation.
Majed Al-Toweirafi, a salesman at one of the telecommunications products shops in Jeddah, said distributors such as Safari, Zajoul and Alo insist on the purchase of a mobile phone set along with the prepaid chip.
Al-Toweirafi urged the Saudi Telecom Company to intervene immediately to stop the unhealthy practice. He said STC should designate a larger number of companies to provide the prepaid card service, instead of confining it in the hands of a few.
Khaled Al-Thaqfi, a salesman at another prepaid card outlet, said demanding additional charges for the chips was illegal and it should be curbed by encouraging people to buy only from outlets which sell at the original price and without conditions.
Many buyers said the STC should supervise the sales of prepaid cards to curb the tendency by some agents to use the service as a means to promote their products. They also feel that chips with denominations ranging between SR100 and SR400 should be introduced.
The launch of the prepaid chip comes as a huge relief to tens of thousands of eager new subscribers. Since the announcement of the launch of the prepaid cards, the mobile phone retailers have been reporting a huge surge in demand.
Even many expatriates who already have a mobile have said that they intend to switch to the prepaid chips. Customers find the service very convenient, as they do not have to worry about huge phone bills at the end of the month.
Intending subscribers are required to fill in an application form, available at STC branches or the designated agencies, and pay the initial charge of SR200 for the SIM card. The card is activated by ringing the 1500 service.
Subscribers are required to furnish all personal details, including name, nationality, iqama number, place of work and residence. This is to prevent the misuse of the mobile phones by criminals who might otherwise benefit from the fact that their phone calls could not be traced by police.
