SIM Dumping Costs Industry Millions Per Year

Tagged: , , , , ,

SIM dumping explained

As anyone who has ever watched “the wire” will know, dumping your mobile phone and SIM costs pretty much nothing in order to replace.

But we are not talking dumping your mobile for the convenience of Baltimore drug dealers escaping the fuzz here, this is much less sinister and a whole lot stranger.

SIM Dumping the new buzzword:

SIM dumping is fairly odd in its make up, here is how it seems to work:

SIM Dumping Costs Industry Millions Per Year
SIM Dumping Costs Industry Millions Per Year

Quiet simply rival mobile virtual network operators (MVNQs) are buying up vast quantities of competitor SIM cards in order to stop the SIM getting activated and therefore earn the SIM company money.

But why do such a self inflicting injury to your bottom end?

Put simply, it appears that the micro economics of this particular part of the mobile industry (virtual network operators) means that buying and destroying your rivals’s SIM cards gives greater chance that your own will be used and more importantly earn you more money.

It appears that one CEO of a SIM company has claimed they were targeted via their distributors within weeks of setting up, the buyer wanted to buy a large order but alarm bells were sent, and the order was pulled.

New retailers are being limited in terms of how many SIM’s they can order in bulk in order to stop the practice causing a massive issue in this particular part of the mobile industry, proof of activation is also being asked for in order to increase further sales to unknown retailers.

If more news appears related to this area please let us know and I will make sure any news that comes my way will be relayed to you guys also.

Anthony Munns