CONTRIBUTION TO: ITU EVENT ON COMBATING COUNTERFEIT AND SUBSTANDARD ICT DEVICES ITU Headquarters, (Geneva, Switzerland, 17-18 November 2014) Submitted by: Mobile Manufacturers Forum (MMF) Contact point: Thomas Barmüller Source: Counterfeit and substandard mobile phones - A resource guide for Governments (EN) http://spotafakephone.com/docs/eng/MMF_CounterfeitPhones_EN.pdf COUNTERFEIT/SUBSTANDARD MOBILE PHONES A RESOURCE GUIDE FOR GOVERNMENTS 1 INTRODUCTION WHAT IS THE DIFFERENCE BETWEEN COUNTERFEIT AND SUBSTANDARD MOBILE PHONES? 2 There has been a proliferation in recent years in the manufacture, distribution, and sale of black market mobile phones (commonly referred to as counterfeit and substandard phones). While this problem has 1) are the same in the measures. both counterfeit and substandard mobile phones on in order to understand the problem and to assist 2; intellectual right holders; both use inferior or used chipsets and other components; and, both fail to information educating consumers about the risks of purchasing black market cell phones. The goal of this topic. The Mobile Manufacturers Forum (MMF) has collected guide and as such this guide subjects such as information on the scope of the risks to society, and benchmarking information on that are designed to control the distribution of both categories of handsets. counterfeit mobile phone explicitly infringes the trademark or design of an phone copies the trademark (brand) of an original phone is an identical copy of the original brand or similar to the original brand (in terms of copying the trademark or the design) for all practical purposes technical solutions. 1 2 1 substandard mobile phone, on the other hand, retail channels and do not capture those sold in the it is reasonable and logical to assume that the data similar in form factor to the authentic brand, but carry no explicit branding (i.e. do not explicitly other brands or form factors from original products. trademark infringements. mobile phone is essentially the same as a counterfeit mobile phone in all other respects. There is mobile phones present the same societal challenges. QUANTIFYING BLACK MARKET COUNTERFEIT/SUBSTANDARD DEVICE PROBLEM: THE TIP OF THE ICEBERG 3 smuggled in3 4 market in the mobile phone sector. This is because many black market mobile phones are physically amount is expected to be 148 million units in 2013. Force, and that does not include the thousands only represent those products sold in traditional 1% 11% 21% 50% problem that exceeds 6 billion dollars USD. 6% 10% Asia Pacific Middle East & Africa Eastern Europe North America Latin & Central America Western Europe 3 html 4 2 furthermore estimates counterfeiting and piracy costs WHAT IS THE NEGATIVE IMPACT OF COUNTERFEIT AND SUBSTANDARD MOBILE PHONES ON SOCIETY? 4 cadmium) in both internal and external components at concentrations much higher than the maximum Figure A internal and external components of the tested mobile phones. substandard mobile phone problem manifests itself A : WHAT IS THE IMPACT ON CONSUMERS? 1 : HAZARDOUS SUBSTANCES IN COUNTERFEIT/ SUBSTANDARD MOBILE PHONES models (3 nos. for each model) from the stores and components) comprising all handsets. FIGURE A: Test: Hazardous substances Chemical analysis Cadmium (Cd) Chemical analysis Lead (Pb) Chemical analysis 2.7 0,02 2.1 2.01 1.9 1.8 1.2 1.01 Cadmium (Cd) % Lead (Pb) % 3.01 0,02 0,01 0.6 0 0.01 Antenna PCI-SD card Material PCI base Black PCI Gold PCI IC 1 Panel connector connector mobile phones. Antenna 3 31,613 25,132 31,466 30,154 38,737 More than 39 times than the acceptable Pb limit 40,000 39,236 FIGURE B: High Lead (Pb) content found in all handsets tested - clearly amplifying their substandard character SE-X5-11012012 (Suny Ericson) F-N71-05012012 (Forme) 19,617 Battery Chip Microphone connector component Speaker 0 0 0 0 0 0 0 0 4866 5764 0 9846 11,879 9248 0 8573 PCB 0 0 Back cover 0 Camera 14,505 22,705 G5-C2-02012012 (G-Five) 1395 0 0 0 0 0 0 0 Charging connector 1706 16,140 13,022 23,076 8575 14,039 Memory card slot 0 307 0 0 0 0 483 SIM slot 1217 0 5672 9202 10,000 19,056 19,617 20,000 0 Figures in PPM 30,000 LED light W-M25-09012012 (Wing) YX-88-110120012 (YX Tel) 2 : OTHER SAFETY ASPECTS found to contain alarmingly high proportions of substandard mobile phones is not the only safety compliance assessments before they can be sold. in most countries, mobile phones must be type therefore safe for consumer use. Figure B Figure C things, ensures that the mobile phone performs the functions it purports to be able to perform, tests for accessories such as battery chargers and batteries FIGURE C: Parts of the cell phone where hazardous substances are found LED manual soldering point Chip component Memory card slot Mic soldering point Battery Connector SIM Connector 1 SIM Connector 2 SPK manual soldering point 4 B: INdT STUDY 8 3 : QUALITY OF SERVICE existence of counterfeit and substandard phones in testing protocols in order to compare the A: GSMA of 18 counterfeit smartphones alongside 3 genuine sector labs for compliance to any legal or industry standards. and data capacity loss, data transmit speeds and measures that are needed in order to make up for the (i.e., more antenna installations, base stations and the need for more spectrum). 4 : COUNTERFEIT/SUBSTANDARD PHONES ARE SOLD WITHOUT WARRANTY stations to rectify the problems. These results highlight the considerable impact for function. 8 5 5 : SECURITY ISSUES (CYBER SECURITY, THEFT OF STOLEN PHONES, DATA-PROTECTION, ETC.) phones cannot be underestimated. This is a huge They use them to shoot, store, and share photos and through the creation of blacklists and other similar measures. interests, and crime control are a cornerstone of the most important public policy debates the security related risks that arise from mobile phones need to be taken seriously. societal problems is not in the crosshairs of most much more important threat than other counterfeit products because it is perhaps the most important numbers, social security numbers, bank account information, and other types of information. There is these mobile phones are not continuously scanning the information the consumer inputs on the phone mobile phones present. This is a threat that must be taken seriously. B : WHAT IS THE IMPACT OF COUNTERFEIT/SUBSTANDARD DEVICES ON GOVERNMENTS? money or their identity. any country is the existence of a legal protection of rights of legitimate business and the promotion capacity to act as a logger of information including remote phone monitoring, logging of incoming and address books, and other data. in the loss of potentially billions in direct and indirect 6 C : IMPACT ON PRIVATE INDUSTRY: COUNTERFEIT/SUBSTANDARD PROBLEM RESULTS IN LOSSES FOR RIGHTS’ HOLDERS WHAT CAN GOVERNMENTS DO TO CONTROL THIS PROBLEM? 5 the MMF discusses potential solutions to the problem Most major manufacturers employ tens of thousands of sales as result of these black market products A : NETWORK BLOCKING SOLUTIONS produced rather easily and cheaply. right one for a certain country. enables black market manufacturers to create and distribute counterfeit and substandard phones much easier than in the past. 1 : COUNTERFEIT/SUBSTANDARD ‘FINGERPRINTING’ BLOCKING SOLUTIONS of mobile phones and black market manufacturers number because the technology may not be able them. To compound this problem, these black market manufacturers pay no intellectual property royalties. does not guarantee that the model is not counterfeit or substandard. The GSMA for example, does not check the legitimacy of the device before issuing an IMEI number. of turnkey solutions, counterfeit and substandard mobile phones can be produced incredibly cheap One technological solution (referred to as 7 a. to determine if the capabilities of the phone match the listed capabilities. The technology capabilities stored in the capability database (database creation is based on information lists to determine if the mobile phone is blocked or not. This solution has the potential of screening out The capability database can also, for example, use b. capability crosscheck failed. 3 : NETWORK BLOCKING BASED ON TYPE APPROVAL c. considering this approach. 2 : IMEI NETWORK BLOCKING SOLUTIONS B : IMPORTATION BLOCKING SOLUTIONS not block those handsets that are imported as contraband (outside the customs process).11 C : DEVELOPMENT OF A COMPREHENSIVE PLAN more traditional measures should also be a focus. should include, among other things, consumer employed by some countries is perhaps best The solutions used in both countries establish purposes.10 The blacklist is focused on stolen and lost 8 1 : INCREASED CONSUMER AWARENESS a critical component of any strategy. The demand CONCLUSION of the mobile phones and their importance in problems posed by these products such as the safety and health threats, the poor performance of the important the security threats particularly in the dollar industry for illegal manufacturers and it is 2 : INCREASED ENFORCEMENT must occur in order to adopt a solution that best suits must include increased resources in the form of focus on the huge black markets that exist in all other resources. problem impacts and cuts across a number of industry representation is necessary. The MMF For more information on this important issue, action plans and the allocation of appropriate and sustainable funding mechanisms. 3 : LEGISLATIVE/REGULATORY REFORMS help consumers learn more about the dangers before they buy them. substandard mobile phones are out of the reach of products that are being shipped to a third country. 9 ANNEX 1 TEST CATEGORY #1 AND #2: Access Failure and Dropped Calls TEST CATEGORY #4: Transmission Power Capabilities: • • • Access Failure: This category measures call • • Dropped Calls: This category measures ongoing calls that are undesirably interrupted • Minimum received power • Maximum transmission power to be listened by antenna. • Results: • 30 26.0% 20 10 0.0% 0 Substandard Average Dropped Calls Average Minimum Received Power 24.0% 20 10 3.3% Bit Error Rate (%) Access Failure Drop Call Rate (%) Access Failure Rate (%) 30 0 Original Average Substandard Average 4 20 times (13dB) 3 2 1 0 -60 -62 -64 -66 -68 -70 -72 -74 -76 -78 -80 -82 -84 -86 -88 -90 -92 Original Average Received Signal Level (dBm) Original Average Average Maximum Transmitted Power 2.0 TEST CATEGORY 3: Handover Performance Substandard Average • to another. • This mechanism is called handover and should Power (Watts) 1.81 1.35 0.96 1.0 0.72 0.51 0.37 0.13 0.09 0.0 GSM 850 (ie. dropped). How mobility works 0.3 0.2 0.1 0.0 Original Average Handover Failure Rate (%) Handover Time (s) +41% time delayed 0.37% Substandard Average PCS (1900) Substandard Average 30 34.2% 20 • needs to be executed • 10 1.8% 0 Substandard Average Transmission Power Control Average time needs to be controlled. phones and if transmits Original Average High Power Power Control Time (s) Handover Fail Average Handover Time 0.4 DCS (1800) TEST CATEGORY #5: Transmission Power Control: Should my phone transmit high or low? • 0.53% EGSM (900) Original Average 0.49 +55% more delay 0.4 0.31 0.2 0 Substandard Average Original Average Low Power 10 TEST CATEGORY #6: How fast is my internet access? • The speed of internet access is related to technology • Most substandard phones tested do not support Data Speed (Kbps) Speed Data Rates 200 EDGE 100 GPRS 0 -62 -65 -68 -71 -74 -77 -80 -83 -86 -89 Received Signal Level (dBm) 125 700 300 Distance Estimated (meters) Original Substandard Diamant Building Boulevard Auguste Reyers 80 1030 Brussels Belgium Telephone + 32 2 706 8567 Facsimile + 32 2 706 8569 Av. 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