Mandatory registration of prepaid users starting from June 1 of this year (existing users until September 1) is justified for security reasons, while the protests from telecom operators are financially motivated.
writes Matilda Bačelić
Just as complaints about excise duties have worn out, mobile telephony has found itself under a new attack from the state. After a crisis levy of six percent on revenue, this profitable industry is facing mandatory registration of prepaid users, which, despite fierce opposition, seems unavoidable. Mandatory registration starting from June 1 of this year (existing users until September 1) is justified for security reasons, while the protests from telecom operators are financially motivated. Registering more than four million users entails significant costs, and the ‘collateral damage’ is the right to privacy. If it is assumed that the registration cost is between 40 to 70 kuna per user, and HT has 1.9 million such users, the cost ranges from 76 to 133 million kuna, which is a substantial amount even for the leading operator. Other operators also have a majority of prepaid users (about 70 percent), indicating that their costs will significantly increase. Additionally, a decrease in the number of users is expected as those who do not register within the deadline face line disconnection.
Intelligence agencies
Also warn that all this will not be possible unless the security of users’ personal data and prevention of identity theft are guaranteed, and the issue of registering foreign tourists must also be resolved.
– Since Tele2 wants to maintain availability at almost all sales points and online channels, adjustments and investments will be significant as adapting such an extensive distribution network is not simple – say the third operator, noting that the obligation for prepaid registration is not prescribed by the Electronic Communications Act, but arises from regulations based on those of the intelligence agencies.
Given that there are no clearly defined and indisputable obligations for prepaid registration in the existing regulations, according to unconfirmed information, the government plans to adopt a comprehensive legal framework that will clearly and indisputably regulate this area.
Legal framework
According to available information, registration will require providing a name, surname, address, and OIB, and will be conducted exclusively through paper forms, which implies creating queues at sales points. – Mobile operators, in the event of introducing the obligation to register prepaid users, will have to fully implement the establishment of new and modification of existing sales and customer procedures, while also ensuring additional resources due to the significant increase in workload during registration. It is also expected that the new procedures will limit the availability of prepaid packages, especially in less populated areas due to sales difficulties. The introduction of this obligation thus calls into question the survival of thousands of jobs, and for small retailers and kiosks, this measure will mean million kuna losses – they say at HT, adding that there is currently no clear and indisputable legal basis for introducing such a measure.
They also claim that its negative impact will reflect on taxes, fees, and other contributions, as well as on the overall recovery of GDP. However, the Croatian Post and Electronic Communications Agency (HAKOM), according to the directive of the initiator of the registration, the Operational Technical Center, has already set a deadline for introducing changes to the General Terms of Business of operators. – It is concerning that HAKOM has begun to engage in these security initiatives, and our assessment is that HAKOM’s role in the upcoming period will be decisive. Therefore, we expect an unequivocal legal act that clearly describes the new legal framework as we do not want to be in conflict with the Constitution – they state from Vipnet. As a consequence of such a measure, Vipnet expects that many users will no longer visit kiosks but will establish a direct relationship with the operator as subscribers or will purchase prepaid vouchers using credit cards at ATMs or on the Vip portal to avoid queues.
