IT is a law that is meant to prevent criminals and terrorists from using untraceable handphones.

Since 2005, only those aged 15 and above have been allowed to buy pre-paid handphone SIM cards here. And they have to register using their identity cards or passports.

Also, each person can own no more than 10 such cards.

Acting on a tip-off from a reader, our team visited handphone dealers and vendors selling pre-paid SIM cards in Bedok, Geylang, Lucky Plaza, and Orchard Road.

Of the 20 vendors approached, nine agreed to sell the 'already registered' SIM cards, though all of them knew that this is against the law.

These SIM cards, kept under the counter in cardboard boxes, were taken out by the vendors only when we asked for them.

It is a quick process, often with no questions asked.

But the 'convenience' comes at a small price.

All nine vendors who agreed to sell the pre-paid cards asked for payment of 'registration charges' of $2 to $15.

For the additional price, some offered 'after-sales service' like helping to activate the SIM cards and providing numbers to call if users run into problems.

Pre-paid SIM cards are usually popular among travellers, foreign workers and students because they are not bound by any contract and can be bought in small denominations.

The sellers we bought from worked in second-hand handphone shops, at money changers' or small roadside stalls.

Several claimed they had 'suppliers' who would get them the pre-registered cards, but some of the bigger shops revealed that they would get existing customers to register for additional cards which they would then sell.

A roadside vendor outside an Orchard Road shopping centre said that while these sellers knew it was illegal, 'it's still a way for us to make money'.

'Some people just don't want to give us their particulars, or, if they are foreign workers, sometimes they don't hold on to their own passports,' he claimed.

The vendor, a Singaporean in his 30s, had asked for $20 for a SingTel pre-paid card with $10 stored value.

He revealed that he gets his supply of pre-registered pre-paid cards from a Chinese agent, and earns $4 to $5 for each card he sells.

He did not know how his agent managed to register the pre-paid SIM cards.

Another vendor in Lucky Plaza who sold pre-registered SIM cards insisted that it is not against the law because his 'company' had already registered the pre-paid cards.

But the teenager manning the counter added: 'We can sell the pre-paid card to you, but you don't tell other people that I sell to you.'

When pressed for an explanation, the gangly youth said that their company had used the details of other pre-paid card users to register for several numbers instead of just one.

'But we asked for their permission, so it is okay,' he claimed.

Well, it isn't.

As customers give their particulars and make a declaration that the cards are for their own use, this would be false representation.

Nonetheless, such cards were also easily available in Geylang. Four out of the nine shops we approached there agreed to sell us the cards without asking for identification.

In one shop near Lorong 22, one even charged $25 for a SingTel pre-paid card with a stored value of only $10.

Explaining the additional charges of $15, the Chinese man, who looked to be in his 30s, said: 'You have to pay for the registration fee, and also a nice number, which is easy to remember.'

Abuse anonymity

Mr Danny Kheng, 31, the manager of a mobile phone shop in Orchard Plaza, was one of the few vendors who did not allow us to buy the pre-paid card without producing any identification, explaining that doing so would allow terrorists to abuse the anonymity that the pre-paid cards offered.

Mr Kheng said: 'Other shops might do it because they find it leceh (troublesome in Malay) to scan the documents and go through the proper procedures.

'But I'm not Geylang. My company's on the Internet, we don't want a bad name, that's why we don't do it.'

Another handphone shop employee who refused to sell us such a card was Mr Mike Boey, 25, who said his shop had 'strict rules'.

When asked if he felt that other shops which sell pre-registered cards were unscrupulous for charging such high prices, Mr Boey said: 'If people want something special, they should expect to pay a special price. If SingTel, M1 and StarHub catch them, good. We get a few per cent more business.'

Lawyer Adrian Tan warned customers against registering cards for shops or others.

'It is not a good idea to register cards for strangers, who may not have any good reason to hide their identity,' he said.

'If such a person uses the card for criminal activities, you can be punished as a conspirator.'

Mobile operators responsible for dealers' actions

The Infocomm Development Authority of Singapore (IDA) said that mobile operators are responsible for ensuring that they and their dealers comply with the registration requirements.

If they don't, 'IDA may issue a warning, impose a financial penalty, suspend or terminate their licence,' said a spokesman.

A SingTel spokesman said the company takes 'a serious view of any misconduct by our distributors and will take disciplinary actions against the errant ones, including suspension in certain cases'.

Mr Ng Long Shyang, StarHub's head of consumer sales, said: 'The systems that are in place should prevent our dealers from fraudulently registering customers. If we find a dealer that has not complied with the registration process, we will not hesitate to terminate our relationship with them.'

An M1 spokesman said the company does random checks on retailers to ensure that they comply with all registration rules.

This article was first published in The New Paper on Nov 1, 2008.