DAMMAM, 11 December 2002 — Prepaid mobile phone cards, SAWA, has once again gone into the black market with retailers charging 12 to 15 percent more on SR100 cards.
Saudi Telecom Company (STC) is selling these cards through approved agents across the country. The authorized distributors bring the prepaid cards to the consumers through hundreds of retail outlets including supermarkets, shopping centers and cellular phone companies.
The retail outlets were getting five percent commission on each card. In addition, the distributors were also giving credit facility to large outlets. But just before Eid holidays the prepaid recharge cards suddenly started disappearing from the market and many distributors reported shortage of cards. One distributor reduced the retailers’ commission from five percent to two percent and supplied cards only on cash payments. The retailers in turn hiked the price from SR100 to SR112 and SR115.
STC says there is no shortage of cards and it is distributing cards to the authorized agents as usual. "If there is a shortage of prepaid charge cards then it is self created by a few dealers," said an STC official.
After the introduction of the prepaid cellular phone service in April this year, recharge cards priced at SR100 were easily available in the open market, though the connection to the service was sold at premium price by many agents. But after the initial craze for the connections died down, it appeared that cards were easily available at various authorized outlets as well as at STC counters across the country.
Although STC has a department to monitor smooth distribution of cards as well as connections to subscribers through its distributors, it appears that monitoring officials have failed to match the tricks of retail agents.
There were reports that recharge cards with zero balance were also being sold by some retail outlets. There were also rumors that counterfeit cards were in circulation in the market. But later it was found that zero balance cards were not counterfeit but the result of some ingenious mind. One supermarket in Dammam near Government Housing (Iskan) reported that the hidden activation number was readable under a strong light without peeling off the sticker. The manager of the supermarket reported that many consumers bought the cards and after a few minutes came back to return the card saying they did not want it. "The card was undamaged and unopened. No one can suspect that its numbers have been copied," he said. The manager said that many of his customers who later bought those cards reported that there was no balance in them.
