JEDDAH/RIYADH, 25 August — Saudi Telecom Company has stepped up efforts to contain the sale of pre-paid mobile chips (SAWA) in the black market which is rampant in the country partly because of the company’s failure to supply adequate chips through its own offices.

Due to growing demand, prices of SAWA chips have gone up in the black market as illegal vendors charge up to SR360 per piece as against the official price of SR200.

Shukr Al-Sheikh, sales manager of mobile communication at the company, told Arab News that STC would take legal action against illegal vendors.

A tour of Jeddah mobile phone market found that a large number of SAWA chips are sold in the black market every day in the city. Illegal vendors sell them inside and outside mobile phone shops.

Some clients complained of cheating by these vendors as the chips stopped working after sometime. Most vendors were charging a uniform price to make a big profit.

Many people said they were compelled to buy SAWA chips from illegal vendors at higher prices due to complications for collecting them from STC offices.

The company insists that public pay the money at the bank and produce the bill to get the chips. "At STC offices, we have to stand in long queues and wait for several hours to get the chips," the clients said.

The flourishing black market shows that the authorities have not taken any serious measure to stop the illegal business and ensure quick supply of chips.

"Every time we go the company’s office, they say the chips have been sold out and ask us to come after two days or next week," one client said.

The black market has affected the business of STC agents who are authorized to sell the chips. The authorized agents said they would suffer a financial loss of SR5 million as a result of black market sales.

Meanwhile, STC started issuing ordinary mobile phone numbers to clients without receiving SR300 in advance.

"They can pay the fee within 48 hours after presenting the application," Saleh Al-Jasser, director general of information affairs and marketing support division, told Arab News.