Democracy in action, part II - India bans pre-paid cell phones in Kashmir

Greater Kashmir November 3, 2009
Pre-paid ban hits 20000 jobs


DANISH NABI

Srinagar, Nov 2: After the Union Home Ministry announced ban on pre-paid mobile connections in Jammu and Kashmir on security grounds, the jobs of 20000 people associated with the retail business of pre-paid SIM cards hangs in balance.
While people have been desperate to know the fate of pre-paid SIM cards, only a few subscribers are turning to retailers for conversion into post-paid.
According to the figures provided by the association, around 10,000 people are running pre-paid recharge and collection centres in the State with an average monthly income of Rs 9000 to 10000. In addition, around 5000 people are associated with the activation and distribution of pre-paid SIM cards.
Besides, the ban would render jobless an estimated 5000 mobile accessory shop owners in the state.
“An average recharge outlet would earn average Rs 300 to Rs 500 a day given the number of telecom operators in the state but they will suffer due to the ban. Similarly, the distributors and activation agents working for petty salaries will be rendered jobless,” the Chairman of Jammu and Kashmir STD Owners Association- amalgam of STD owners and recharge outlets in the state- Bashir Ahmad Dar told Greater Kashmir.
He said the ban would indirectly hit estimated two-lakh people in the state. These include the family members of those associated with the business. “It was our bread and butter but we have to look for a new business due to the ban.”
Lashing at the Government for imposing the ban, Dar said the telecom operators in the State should be held responsible for giving SIMs cards to ‘irresponsible people.’ “They (telecom operators) gave pre-paid SIMs to every Tom, Dick and Harry which is now being portrayed as a security threat. They earn in billions but only the poor retailers are bearing the brunt of the ban,” he said.
The SIM card retailers and company outlets of the telecom operators in the state have barely witnessed any rush of subscribers who want to switch over to post-paid services.
“Since the ban was announced we have received only a few subscribers who want to shift to post-paid services. Subscribers mostly enquire about the modalities of the ban but they are reluctant to switch over to post-paid connections,” Dar said.
He said around 90 per cent active SIM cards in the state were pre-paid connections as the service was both affordable and convenient. He said only 20 per cent subscribers could afford post-paid services. “Post-paid service is expensive even if people opt for the cheapest monthly plan. Majority of the pre-paid subscribers are students and people from lower strata of the society and they can’t afford post-paid services,” he said.
The Centre has imposed ban on pre-paid connectivity in the state since November 1. The telecommunication companies have already been asked to halt issuing new pre-paid SIM cards while the validity of the mobiles would not be renewed. Around 38 lakh active pre-paid SIMs need to be converted into post-paid or they would be rendered useless.
The acting President, Kashmir Traders Federation, Muhammad Yasin Khan said the ban would thousands of shopkeepers in the Valley. “They are completely dependent on cellular service and their business will come to halt due to the ban,” he said, adding they support STD owners association in their stand against the ban.