What is the purpose of type approval?
Issued by:
DIRECTOR GENERAL OF TELECOMMUNICATIONS JABATAN TELEKOMUNIKASI MALAYSIA WISMA DAMANSARA JALAN SEMANTAN 50668 KUALA LUMPUR
TELECOMMUNICATION REGULATORY DETERMINATION
Cellular Telecommunications Service
The use of Subscriber Identity Module (SIM) Lock In the Cellular Network
TRD 007/98
1. Introduction
This Regulatory Determination on cellular telecommunication service addresses the use of Subscriber Identification Module (SIM) in the cellular network for the GSM 900 & 1800 system and new systems with SIM card application. This determination made by the Director General is to be implemented by cellular network operators including dealers and distributors of the cellular handset.
2. Background
2.1 The Subscriber Identity Module (SIM) card is a kind of smart card, which contains the relevant personal information, and identity of a GSM customer. Before a customer can access and use the network to which he subscribes, he needs to insert the relevant SIM card into the handset for the network operator to verify the customer identity and status when the handset is turned on.
2.2 The network operator however can electronically limit or restrict a particular handset of its usage by applying the mechanic of SIM lock. Some operators employed SIM lock as a tool in fraud management and it is used for anti theft purpose. It is also a mechanism to protect handset subsidies provided by network operators.
2.3 A particular handset can be locked to a certain operator only. The SIM lock function electronically locks a particular handset into a network with the result that a customer is tied to the registered network.
2.4 Another application of SIM lock is termed as handset SIM lock in which a handset is locked to a particular SIM card. In this case any other SIM card cannot share a handset even though it is of the same network.
2.5 In Malaysia, SIM lock is used as a mechanism for protection on handset subsidies and it locked the handset into the registered network.
2.6 All type-approved handset imported into the country are technically open SIM. That is any particular handset can share the network of the same system or any SIM card of the same system can be used in any handset. The handset is also imbedded electronically with IMEI (International Mobile Station Equipment Identity) number.
3. Implication of SIM Lock
3.1 The competition amongst network operators today is based on handset prices. SIM lock has been applied to most handsets since handset prices have been heavily subsidised by the network operators. This therefore prevents the customers from changing network operators, as they would have acquired a new handset to do so. The implications of having SIM lock are: -
i) Churn is high in Malaysia and customers need to purchase new handsets when moving to a new network operator on finding that the network is either congested or has limited coverage.
ii) The mobile telecommunications industry experiences a higher importation cost as customers frequently move from one operators to another sometime holding more than one handset. This high importation costs raises foreign currency issues and in turn affects the balance of payments.
iii) Indirectly removing SIM lock means reducing or doing away with subsidies. The customer may choose the service based on its quality and coverage area. Network operators thus allowed investing instead in the very much-needed infrastructure.
iv) The customer has to pay the dealer to unlock handsets. In this case the set has been tampered with by removing the IMEI number and thus deprives of its anti theft capability.
4. Determination on SIM lock
4.1 SIM lock of any kind is considered to be anti-competitive. Hence no mobile operators should attempt to adopt and implement any type of SIM lock features in their network and at customers’ equipment without prior approval of the Director General.
4.2 Network operators and dealers are allowed to deploy SIM lock handsets to customers provided that SIM lock is offered to customers purely for the purpose of anti-theft and to ensure that customers may unlock their SIM’s in the handsets by themselves when required. Such SIM lock feature must be in conformity with the established and approved standard and specification.
4.3 All locks should be designed in such a way that end users can unlock it by themselves. All network operators concerned have to inform their customers of such function and user rights.
4.4 All suppliers or dealers are not allowed to tamper the handset by removing the IMEI number.
4.5 This Regulatory Determination comes into effect from 1st. January1999, when all suppliers and dealers are not allowed to supply SIM lock handsets to the customers.
4.6 Handsets sold before this date are exempted from this Regulatory Determination
(DATUK HAJI HOD BIN PARMAN) Director General of Telecommunications Jabatan Telekomunikasi Malaysia Kuala Lumpur Date 20th. November 1998.
TELECOMMUNICATION REGULATION DETERMINATION "THE USE OF SUBSCRIBER IDENTITY MODULE (SIM) LOCK IN THE CELLULAR NETWORK" - TRD 007/98
In response to requests from various cellular operators to defer the implementation date of the TRD 007/98, the Deputy Director General 1, Dato' Ismail Osman, in a letter (dated 23.12.98) to all cellular network operators, informed them of the following decisions made by JTM :-
Quote:
"Jabatan ini telah mengambilkira sebab-sebab yang diberi oleh pengusaha-pengusaha dan telah membuat keputusan yang berikut:-
i) Pengusaha-pengusaha yang telah membuat pengesahan tempahan kepada pihak pembekal untuk mengimpot alat-alat selular mobil (handset) yang telah di `sim lock' sebelum pada tarikh 15 Disember, 1998 dibenarkan memasarkan alat-alat tersebut sehingga 28 Februari 1999.
ii) Bagi alat-alat selular mobil (handset) yang telah di `sim lock' dan berada dalam stok dibenar dipasangkan sehingga 28 Februari, 1999.
iii) Semua alat-alat yang diimpot selepas pada tarikh 1 Januari, 1999 hendaklah mematuhi peruntukan di Ketatapan TRD 007/98 tersebut. "