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Prepaid Phones Get a Bad Rap From Crime Use
Prepaid cellphones, which let users pay in advance for their cellphone service instead of signing a contract, are huge in Europe and much of Asia. The service is taking off in the U.S., where cellphone carriers are wooing more teenage users. But in Japan, a wave of crime involving the use of prepaid phones by con men has tainted the service's image, turning it into a scapegoat for all kinds of social ills. By Ginny Parker for the WSJ. "NTT DoCoMo Inc., Japan's largest cellular carrier, says it is considering shutting down its small prepaid business, citing a need to cut down on illegal activity. Japanese politicians, worried about rising crime, had discussed banning prepaid services but decided to push carriers for stricter identity checks." "Prepaid cellphones are being used to commit crime," says Yoshihide Suga, a member of Japan's Parliament who is helping draft legislation to establish penalties for misuse of the phones and make it easier to trace ownership. "The carriers have to take responsibility," he says." In much of Europe, consumers seeking a prepaid account don't have to give their names and addresses. But some countries are beginning to change that. Fearing that prepaid phones will be used by terrorists, Switzerland passed a law requiring prepaid users to register their names and addresses starting last July." Related articles: -- Norway: Police want mobile phone cash cards stopped - The untraceability of the current cash cards for subscription-free mobile phones is a boon to professional criminals -- Swisscom Blocks 130,000 Prepaid Mobile Phone Numbers - Switzerland's incumbent telephone operator, Swisscom, this week blocked some 130,000 prepaid mobile phone numbers because their owners failed to register them by an end-of-October deadline, -- Switzerland forcing registration of PrePay customers - The Swiss parliament decided last year to make registration mandatory for prepaid cards, after intelligence warnings that members of al-Qaida were using them to make calls without being traced. -- Prepaid phones to be outlawed in Japan - The government coalition in Japan is preparing a law to outlaw prepaid mobile phones. The reason given is that too many prepaid phones are used for crimes. |
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