If your cellphone has stopped ringing and you cannot make a phone call, that means your small, handy gadget is probably Chinese-made and was banned by Egypt's telecom regulator. Since you are a law-abiding citizen or resident, you will dump your mobile, which cost around LE500 ($91) or less, and buy an internationally well-known brand for at least LE1,000. But many mobile users wonder how these Chinese-made gadgets got into the country in the first place! Smilingly, they tell each other: "This must be Egypt!" Egypt's National Telecom Regulatory Authority (NTRA) has played it tough, announcing in February that the country's three mobile operators would block service to all anonymous users and Chinese-made cellphones that had repetitive serial numbers. Amr Badawy, the head of NTRA, has reiterated in press reports that repetitive serial numbers "create network failures and security problems". Chinese-made mobiles also have two cells, doubling frequency emissions, which pose a threat to health, according to Badawy. The tough move has sent shock waves through the local market. While mobile shop owners say NTRA has put an end to a lucrative business, some market analysts claim that telecom giants will be the only gainers. "Chinese-made cellphones have been on the local market for over six years, and no-one has complained about any health hazards. The serial number issue may be sorted out with NTRA if there's a good faith without demolishing a business," Mina Youssef, an owner of a downtown Cairo mobile shop, told the Egyptian Mail in an interview. "Chinese gadgets have all the multimedia functions found in any other state-of-the-art brands. They sell for lower prices, LE100-LE500 on the average," Youssef said. Although NTRA's Badawy made it clear that only smuggled Chinese mobiles, which have bogus serial numbers, would be banned, many people believe all imported cellphones from China would be blocked. Badawy has said that Chinese-made gadgets, which had no guarantee or after-sale maintenance, will be blocked as well. He didn't give any estimated figures on the number of substandard Chinese brands in Egypt. According to unofficial data, there are around two million Chinese-made mobiles that have repetitive serial numbers of original brands. These mobiles cause network failures and pose a threat to national security, according to Badawy. "Maintenance and accessories for Chinese-made mobiles are everywhere and very cheap. No problems regarding safety have been reported. Customers were happy and we were happy too until this doomed move by NTRA," Youssef stated. The number of mobile subscribers in the most populous Arab country of 80 million is estimated at 56 million, of which at least five million use Chinese-made mobiles. Could all of them be blocked? Youssef is one of many who doubt that. "I think disconnecting millions of mobiles is unlikely as telecom operators wouldn't give up on their subscribers. Mobile operators would come up with a compromise by offering new gadgets with original serial numbers on credit," he said. CI Capital said in a recent report that Raya Holding for Technology and Telecommunications would benefit from NTRA's move, as the company's sales would jump after kicking Chinese-made gadgets off the market. "The move will have a positive impact on Raya as it will lessen competition over cheap and medium mobiles," CI Capital said in the report. The investment bank said that imported cellphones from China stood at 30 per cent of market share in the North African country. Raya's sales plunged by 15 per cent in the last three quarters of 2009, it added. "Chinese-made mobiles have taken a blow. Sales have plummeted. Who would compensate traders for huge losses incurred by this decree?" wondered Sameh Mursi, an owner of a mobile shop in Cairo. "I have an inventory worth LE100,000, half of which is Chinese-made. People stopped buying Chinese gadgets, which used to sell like hot cakes. What's wrong with a Chinese mobile? I have one and it works properly. It wasn't disconnected by the way," Mursi added. "Luxury gadgets have their customers all the time. People seeking quality go for original brands like Nokia, Ericsson, Motorola and Siemens. With this move, the Government will be forcing low-income people to buy expensive mobiles. Is this fair?" he asked.
