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Legal & Regulatory
14 December 2004
Japan's Liberal Democratic Party plans to ban
prepaid cell phones which it says are used mainly by criminals.
Reports indicate that Vodafone KK, the Japanese unit of the British mobile
giant Vodafone Group PLC with 1.5 prepaid users will be most hurt by the
ban.
Vodafone says however it is trying to confirm
the identities of customers to combat scams.
Japan's top mobile carrier NTT DoCoMo has
93,000 prepaid-phone users out of 46 million DoCoMo users.
Reports indicate that criminals make calls on
prepaid phones, generally to elderly people, falsely claiming to be police
officers or lawyers dealing with a son or daughter in trouble, and demand
cash be transferred quickly into a bank account to save their child.
Sometimes they pretend to be the children themselves.
The European Business Community representing
more than 3,000 European companies has decried the proposed ban.
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