Unlicensed, pirate devices top Samsung's Brazilian regulatory agenda

Curbing the flow of pirate mobile devices in Brazil, as well unlicensed models traded in the local market, is the first item on the regulatory agenda for South Korean electronics manufacturer Samsungin the country, according to company executives.

During a breakfast session with Brazilian journalists in Monaco, where the company held its Samsung Forum 2015 this week, executives said that 90% of sales of smartphones in the country are divided between six major brands.

Furthermore, unlike tablet consumers, smartphones users have gone through a process of "sophistication" and are now more selective in their choice of brands.

Nevertheless, the remaining 10% of the market comprises not only smaller brands, but also models that have been pirated or have not been registered by telecoms watchdog Anatel.

Although this may seem a small share of the market, it is one that is giving headaches to all the other players. This irregular equipment is not subject to the strict regulatory requirements that others are. The issue also tends to be worse in the case of tablets.

"I hope the Brazilian government starts paying more attention to these devices," said Mario Lafitte, VP of marketing, institutional affairs and government relations at Samsung Latin America.

The executive praised the firm's "long-time, strong relationship" with the Brazilian government and sees authorities as being open and willing to promote adjustments and improvements in regulation, including Samsung in its discussions.

"Our sector is highly regulated and it's essential to keep up with the winds of change. There's a positive environment, intense dialogue, public consultations taking place... We're satisfied," Lafitte said, highlighting the pending topic of pirate devices, pointing to tablets in particular.

The problem is not new.

Local electronics and electric industry association Abinee, of which Samsung is a member, has been calling for stricter measures to fight piracy for several years. Some measures have been adopted, but mostly on the handset side.

In 2014, telcos and Anatelannounced a pilot project called integrated device management system, or SIGA by its Portuguese acronym, which would enable tracking of irregular and unlicensed models via SIM cards, which read the handset's serial number, known as the International Mobile Equipment Identity (IMEI).

FEATURE PHONES

During the breakfast with journalists, Roberto Soboll, telecoms director at Samsung Brasil, underlined that the company has given up on producing and selling feature phones locally and is focusing solely on mid-tier smartphones.

"The telecoms segment is all about not missing the focus. If you fail, you're out," he said.