The CEIR (Central Equipment Identity Register) software and hardware complex is an essential tool for operators, regulators and executive authorities. It provides control and accounting of mobile subscribers, solving a huge amount of problems related to the security of citizens and the economy of the state.
Each country has its own expectations of the CEIR system. Considering the functionality of CEIR in general, we can assume that the system works effectively if:
— The number of thefts and illegal imports of mobile devices is decreasing;
— The number of counterfeit devices on the market is decreasing (with empty, incorrect or changed IMEIs);
— Counteraction to extremism, terrorism and other illegal actions is carried out (by blocking devices in all networks of the country);
— Regular additional revenues to the state budget are provided by legalizing the import of mobile devices;
— The situation in the field of protection of personal data of citizens is improving, etc.
There is a CEIR platform in Kazakhstan that functions, but it needs to be developed. A year ago, Bagdat Batyrbekovich Musin, the ex-Head of the Ministry of Digital Development, Innovations and Aerospace Industry of Kazakhstan, drew attention to one of the main problems that CEIR is designed to fix:
«One of the schemes of «gray» imports is the import of fake mobile phones into the country. According to the database of identification codes, currently there are about 3.7 million subscriber devices operating in the networks of cellular companies in the country that have duplicate IMEI codes.»
However, this is far from the only task that can be solved with the help of CEIR. What development vectors can be offered to the current functioning system in Kazakhstan? We will review some in this article.
The history of device registration in Kazakhstan
IMEI registration has been available in Kazakhstan since 2019. By January 1, 2019, all the mobile subscribers had to register their devices (smartphones, electronic tablets, smartwatches, etc.) in the database of identification codes. Operators had to automate the transfer of three parameters necessary for registration — IIN, subscriber number and IMEI code.
Detailed instructions for subscribers were publicly available, the sequence of actions depended on the specific telecom operator.
The main purpose of such accounting was to facilitate the work of law enforcement agencies, specifically, to quickly calculate and block phones in case of loss and theft. The system also allowed collecting subscriber statistics. These two functions form the basis of the system’s operation even now.
Problems today
4 years after the mass registration of devices, the analytics available within the platform revealed the acute problem with duplicate IMEI codes in Kazakhstan — the statistics of counterfeit devices in 2023 numbered over 3 million. This meant that a huge number of devices at the time of counting were already difficult to track and block in case of theft, for example.
Gray schemes are the main mechanism for selling such devices. Fraudsters surpass tax customs duties and do not pay VAT. Thus, the devices are not registered properly and go into illegal turnover. As a result, operational work on the search for stolen phones is becoming more difficult, tax revenues are declining, and government revenue falls.
Theft of mobile devices involves not only financial losses on the part of the owner, but also poses a threat of illegal dissemination of personal data. Fake devices are especially easy to access — today there are many hacking-oriented programs available. Phishing SMS mailing is also actively used by hackers in order to commit illegal actions.
The simplest thing a subscriber can do to ensure their safety is to purchase mobile phones, electronic tablets, etc. only in official stores. However, even so, the trafficking of illegal devices continues with all the listed consequences for subscribers, operators and the state.
International experience with CEIR
Currently, the IMEI monitoring system for subscriber devices has been implemented in more than 30 countries:
United Kingdom (result: decrease in the number of mobile device thefts);
Australia (result: reduced theft of subscriber devices).
Turkey (result: reduction in the number of mobile device thefts, new budget revenues from IMEI registration);
Kenya (result: clearing the market of counterfeit devices).
Uzbekistan (result: prevention of black imports of mobile devices by 98%, increase in revenues from imports of mobile devices by 700% - according to the Newspaper.uz);
Azerbaijan (result: clearing the market of counterfeit devices), etc.
The cases of CEIR installation in neighboring countries are quite illustrative. Let’s talk about the experience of Uzbekistan.
In April 2019, a similar platform for registering IMEI codes of mobile devices in Uzbekistan called UZIMEI was implemented. The main problem that had to be solved at that time was the imbalance between the volume of imports of mobile devices and their actual customs clearance (out of 3−5 million phones, smartphones and electronic tablets, less than 60,000 were officially registered).
This led to the loss of customs and other payments, increased competition among local device manufacturers, the turnover of devices with incorrect IMEI, and other related problems.
As a result of working with a company with experience and rich expertise in CEIR installation, the number of official importers increased 2.7 times, revenues increased more than 8 times, and the number of counterfeit devices decreased by 98.5%.
Alexander Suchkov, the analyst and IT journalist, cites the following data in the expert review on the portal Podrobno.uz: «After the practical implementation of this system, from November 1, 2019 to September 15, 2020, 911,882 mobile devices (worth $ 47.3 million) were imported, and 100.1 billion soums were received by the State Budget».
Solutions for Kazakhstan
One of the major issues identified by the CEIR system operating in Kazakhstan is a huge number of devices with duplicated IMEI codes. It can be solved in different ways. Firstly, it is necessary to outline the main vectors based on the experience of other countries, since it is difficult to assess the result of the current system.
What can be done?
In Uzbekistan, Tajikistan and Turkey, for example, IMEI registration is chargeable. This solution has its own aspects, but it can be considered.
Another way to fight against «gray imports» is to ensure fair customs clearance and comply with customs rules on the territory of the Republic of Kazakhstan. The CEIR system will take over the blocking of devices illegally imported into the territory of the republic.
Such a solution may also offer an additional income item to the state budget, similar to the experience of Uzbekistan.
The potential of CEIR in Kazakhstan is large-scale and represents a very promising direction for development. It is possible to start by solving urgent problems and gradually move on to the full range of possibilities that the experience of using the system in other countries demonstrates.
The CEIR system is constantly evolving — it is always open to upgrades. In expert hands, it successfully integrates with key systems and government portals of the country, helping to effectively control the mobile device market, ensure security and support the interests of all participants in the telecom market — operators, subscribers and communication regulators.
Finally, it is possible to catch up with the global level of CEIR development and maximize the potential of this system. The experience of neighboring countries confirms this. It is gratifying to note that there are specialists with rich experience in the development and monetization of CEIR in the Kazakhstan telecom market; they are always ready to offer their solutions.
For example, our company SC.Soft, whose expertise is internationally confirmed, including participation in events and working groups of the GSMA Association as invited speakers. The company is ready to participate in the working group on the prospects for the development of CEIR in Kazakhstan and share its experience and cases.
