Mobile device giants, Nokia has been waging a big war against counterfeit devices in Nigeria and there seems to be remarkable success in this regard going by the following reports by ROMMY IMAH.....
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| *L-R: Service Network Manager Nokia West Africa David Efanga, Head of Care Nokia West Africa, Silvin Sinan, Head of Communications Nokia West Africa, Osagie Ogunbor at the Anti-counterfeit Media roundtable in Lagos |
The revolution in Nigeria’s telecommunications industry has no doubt, given birth to so many other things ranging from the good, the bad and the ugly. While it is not contestable that this revolution has greatly impacted on public and private businesses, giving the nation’s economy a fillip, the negatives that are attendant especially in the merchandising of the tools of communication are overwhelming.
A visit to the popular Computer Village in the commercial town of Ikeja, Lagos, South West Nigeria will leave the visitor confounded over what telecommunication device is fake or original. The reason being that they come with multiple attractions; they come cheap, beautifully designed, almost replicating the features of the very quality and notable brands in the market. In some cases, they go by the names of the notable brands. The unsuspecting user buys only to discover moments later that all the attractions are mere marketing gimmicks. They are enveloped in three similar words- fake, false, phony. Or better still, call it counterfeit. But in this part of the world, they are called China phones or Chinko.
Computer Village, Nigeria’s replica of the famous Silicon Valley is the haven that has become the dumping ground of these kill-joy phones. A first-time visitor to this ‘digital market’ is thrown into confusion not only by the seductive beauty of the infamous China phones competing for space with the well-known international brands but by the chaotic nature of the market that has made it absolutely difficult for such a visitor to distinguish the real from the fake.
Unless you have used the popular brands before, it will certainly be pretty difficult for you to know the difference between the real and the counterfeit phones. The worst now is
that Nokia, the most popular of all the phones has had its brand cloned by these Asian technology wizkids. That is why a visit to the Computer Village (especially if you are a first-timer) will leave you at the mercy of these fake phone merchants. Cheap unbranded counterfeit handsets are a big hit in Computer Village. In fact, a story has it that if you want to make quick progress in mobile phone business in Lagos today, begin by selling counterfeit phones. If you go for the branded phones, you may not break even immediately. The cheap but highly ‘sophisticated-looking’ counterfeit phones are the kings in the market because they come in dual SIM holders and can offer the same services by the branded ones.
These counterfeit handset designers are clever and understand their target market very well. Nigerians would want to get all the features in a branded Smartphone in the counterfeit phone but at a very cheap price. Therefore, the counterfeit manufacturers or designers firstly work on the quantity principle instead of quality and secondly they are priced less than half the price of Nokia, Samsung, Sony Ericsson or LG phones- the popular brands.
About two years ago, it was widely reported that the Chinese government placed a ban on the shipment of fake and cheap phones from China because they were found not to have IMEI (International Mobile Equipment Identification) numbers as well as showing no evidence of any tests conducted on those phones to ascertain whether the levels of Radio Frequency (RF) emissions from them were within the stipulated international standard.
The ban came on the heels of a security action taken by the Indian Department of Telecoms which resulted to about 20 million counterfeit phones going dead in India for carrying illegal IMEI numbers. It was then that the Chinese government ordered a halt in the further shipment of counterfeit phones to India.
The greatest concern about these phones is the attendant health implications. Evidences abound that these types of phones have relatively very short life spans of less than a year, freeze very often and the batteries going dead after some months of usage.
According to Silvin Sinan, Head of Care, Nokia West Africa, beyond the health implications associated with counterfeit phones, the impact on Nigeria’s economy is overwhelming. For instance, fake devices deny the country of some substantial earnings owing to the fact that these counterfeit devices are imported to the country illegally without import duties as a result, the payment of Value Added Tax (VAT) is avoided by such importers. This situation creates a tax loss of between US$18million and US$20million per annum for the Nigerian government.
Where counterfeiting thrives, poor protection of intellectual property makes establishment and running of ICT companies conducting research and development very risky. This is in addition to international companies directing their investments to some other countries with defined legislations against intellectual property violations.
One common complaint among telecom subscribers in Nigeria is about Quality of Service among service providers. It is evident that high penetration of fake devices impacts on the performance of operator networks, which lowers operator profits and government tax income.
Fake mobile phones do not carry IMEI codes and therefore, cannot be tracked by the network operators. In this case, perpetrators of heinous crimes such as kidnapping, threats and terrorism rely on counterfeit phones to unleash their dastardly activities. In areas where subscribers’ data are not stored, mobile phone-aided crimes thrive.
Counterfeit phones are not covered by warranty which in turn, results to poor consumer satisfaction with the greatest impact on low income consumers. And because such phones are not covered by warranty, should there be any factory issue on the course of usage, after sales service support is not guaranteed.
Currently, among developing nations like Nigeria, there is a paradigm shift to the use of the Internet with people moving from the traditional PC to mobile devices such as cell phones and Smartphones. Counterfeit phone owners may not be able to benefit from the value added services that come with modern mobile phones.
For sometime now, Nokia, global leader in mobile phone manufacturing has been waging a relentless war against the influx of counterfeit phones in the country. With collaborations coming from relevant agencies like the Consumer Protection Council (CPC), Standards Organisation of Nigeria (SON) and security agencies, Nokia has been able to contribute its own quota to ensuring the eradication of counterfeit devices in Nigerian markets.
Through public awareness campaigns on the dangers of counterfeit phones, Nokia seems to have been succeeding in pushing away counterfeit phones from the markets. Recently at a media parley to highlight the dangers of counterfeit devices, Sinan said the market share of fake Nokia devices has significantly dropped.
From 15 per cent in July 2010 to a significant drop to 6 per cent as at July 2011, Sinan explained that the lure of buying fake phones at cheap prices is no longer attractive as Nokia now has a range of devices that are available at the same affordable prizes but still far more durable with value added services.
Nokia has adopted some measures to get to this level. A couple of months ago, it introduced a range of dual SIM phones into the Nigerian market; this has significantly impacted negatively on consumer patronage of counterfeit phones. There has also been the sustained “Be Original, Buy Original” marketing campaigns as well as the SMS Warranty check which allows consumers to check the warranty status of their devices so as to confirm originality.
In the words of Mrs. Ify Umenyi, Director General, Consumer Protection Council, “apart from the loss of valuable income through the purchase of fake handsets and their frequent replacement by consumers, there is a growing concern that the result of highly hazardous emissions from fake mobile phones may soon begin to manifest. Counterfeit mobile phones are low in quality and do not meet the safety standards. In some situations, the radiation from them is beyond the permissible limits and can cause serious damage to the health of consumers.”
This therefore, should be a collective fight and should not be left alone for Nokia. Government should through its agencies, show greater interest in this fight for the good of the Nigerian economy.
And like Silvin Sinan would say, “this is a fight against intellectual property theft; it is a fight against economic sabotage and it is a fight for consumer protection. This is a fight to entrench standards in the goods and services that Nigerians consume. Indeed this is a fight against a crime that hurts us in more ways than one. It is a fight that can be won.”
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