Skip to main content

Fighting SIM Box fraud

...stakeholders call for an amendment

By Kofi Ahovi
Stakeholders in the telecom industry are appealing to the government to consider reverting the law mandating telecommunications companies to charge 19 cents for incoming international calls.

The stakeholders believe this would discourage the activities of SIM Box fraudsters.

Under the law the telcos are expected to pay 6 cent out of the 19 cent to the government. Currently, both the government and the telcos are losing revenue due to the activities of these SIM Box fraudsters.

SIM Box fraud is a system by which some persons re-route international calls coming to Ghana through some boxes in which they have inserted local SIM cards, and they terminate the calls using those SIM cards, to make the call appear as a local call.

This business is particularly growing because the perpetrators are able to negotiate lower rates other than the 19 cents with the international carriers and only pays about 4 cents to the telcos by terminating the calls through their network. This implies that government loses its expected 6 cents.

According to the stakeholders, if the law is amended and the telcos charge their own competitive rates, the SIM Box business would be unprofitable.
The Head of External Affairs -Vodafone Ghana, Gayheart Mensah, agrees to this proposal and hinted that there is no SIM Box activity in Nigeria because there is no fixed rate for incoming international calls.

All telcos have international gateway through which they bring in international traffic for each other. But to ensure a level playing field, the law says no one can charge less than 19 cents per minute.

SIM registration was touted as a mechanism to eliminate SIM Box fraud, but all SIM cards being used by the fraudsters are registered. Hence the government has to look at alternative way of curtailing the activities.

The government introduced the law as a move is to enable government raise additional revenue from communication services provided by telecom operators to their customers. This was contained in the Communication Service Tax (Amendment) Bill which was sent to Parliament.
The general purpose of the Bill is to amend some provisions in the Communications Service Tax Act, 2008 (Act754) to clarify the scope and coverage of the Tax and to include interconnection services within the tax base. According to a report by the Committee on Finance, the move forms part of efforts by government to address some challenges among telecom companies in respect to the application of the tax to interconnection services.
The Communication Service Act, 2008 (Act 754), was passed in 2008 to impose a 6 per cent charge on communications service usage. The 6 per cent was arrived at in order to remove the surging nature of the tax with regards to interconnection services.


SIM Box fraud has been a major plague. But it has become very obvious that very often there are fraudsters who scoop revenue from both telcos and the state through SIM Box fraud. There is however unconfirmed suspicion that some telcos actually engage in SIM Box fraud just to avoid paying appropriate taxes on international traffic to the state. But there is a different between SIM Box fraud and what some telcos are allegedly doing to undercut other telcos on the international front.

Comments

Popular posts from this blog

US-Based Doctor Supports Weija Leprosarium, Underprivileged Children In Ankaase With Cash & Food Items

 In a remarkable display of philanthropy, US-based medical practitioner, Dr. Kofi Kyei Sarfo, and the Sarfo family have made significant donations to support vulnerable communities in Ghana. During his visit to Ghana for the Christmas and New Year festivities, Dr. Sarfo and his family donated assorted food items and $5,000 to the Weija Leprosarium in Accra. This generous act aims to improve the lives of the inmates and support the tireless efforts of Rev. Father Andrew Campbell, founder of the Lepers Aid Committee. The donation to the Weija Leprosarium is a testament to Dr. Sarfo's commitment to giving back to his community. He praised Rev. Father Andrew Campbell for his selfless work in integrating cured lepers into society, emphasizing the need for continued support to ensure the well-being of the inmates. Dr. Sarfo encouraged others to follow in his footsteps, stating that every donation, no matter how small, can make a significant difference in the lives of the inmates. The don...

Kenpong Travel & Tours Champions Breast Cancer Awareness During Customer Week

  As part of activities to mark Customer Week, Kenpong Travel & Tours, a leading travel agency in Ghana, is joining the global fight against breast cancer. October is Breast Cancer Awareness Month, and the company is passionate about spreading hope and support to those affected. At Kenpong Travel & Tours, we believe that travel and exploration can be therapeutic and empowering. That's why we're committed to supporting our customers and the broader community in the fight against breast cancer. We're proud to stand in solidarity with breast cancer warriors and survivors. At Kenpong Travel & Tours, we believe that everyone deserves a chance to explore the world and create unforgettable memories. Let's prioritize health, support one another, and fight against breast cancer," said Kennedy Agyapong, CEO of Kenpong Travel & Tours. Our efforts are focused on raising awareness, promoting early detection, and supporting those affected by breast cancer. We urg...

Mfantsiman Girls to Host 65th Speech & Prize-Giving Day

  Mfantsiman Girls Senior High School is set to host the 65th Speech and Prize-giving Day and Homecoming from 14th to 16th March at Saltpond in the Central region. This year’s Speech and Prize-giving day is being hosted by the 2000-year group, and over 5000 old girls and students of Mfantsiman Girls are expected to attend the programme. Under the theme, ‘Leveraging New Media Technology to Optimize Girl Child Education,’ the event will emphasize the importance of harnessing technology to address the unique challenges faced by girls in accessing quality education, particularly in marginalized communities. By leveraging new media technology, we can create inclusive, interactive, and engaging learning environments that empower girls to reach their full potential. The theme will also serve as a call to action, encouraging students, educators, and stakeholders to explore innovative ways to integrate technology into girl child education, ultimately driving positive change and promoting a...