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AT&T, Others Fight Back Against Pre-Paid Phone Traffickers

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How is this unlawful?

maokh

Feb 7, 2008, 5:56 PM
The LoC has stated specifically that unlocking a handset is not a violation of the DMCA back in late 2006. Read: Exempt from DMCA: http://www.copyright.gov/1201/docs/1201_recom mendation.pdf

Also, the state department does not prohibit the exportation of cell phones.

Prepaid carriers are selling handsets at retail locations without requirement of activation or contract. We all know that that motorola phone is not really $14.99, and some sort of subsidy exists. But they are still just selling you a phone. I am not legally required to activate it and use it for a length of time. I could toss it into a room and let it rot for all it mattered.

So...someone gets smart, takes these phones, unlocks them, and sells them over seas an...
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Globhead

Feb 7, 2008, 7:10 PM
I don't think it is even "slimy." If the carriers were not flooding the market with sub-wholesale prepaid phones, these "traffickers" could afford to make a business of reselling phones purchased at wholesale.
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chainmail311

Feb 7, 2008, 8:08 PM
Yeah, there's absolutly nothing wrong about this. Just greedy cell phone companies/manufacturers. Greedy greedy. Why don't they give the customer what we want in the first place: Unlocked handsets. Jerks.
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jex

Feb 7, 2008, 9:03 PM
For the sake of example... Nokia N75 Unlocked = $399.99 (www.nokiausa.com), AT&T Subsidized N75 = $349.99 ($199.99 w/ 2YR Contract)... AT&T will unlock a handset if (a) was purchased @ retail cost (so AT&T is already giving you a deal from Nokia, you just have to be a customer and call in to get the subsidy pw) or (b) if you're in contract, you must fulfill @ least 90 days of service with them... Alot of ppl don't understand that the contract price IS NOT the subsidized price which is also NOT the retail price... 😳
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chainmail311

Feb 7, 2008, 9:11 PM
How is the contract price NOT subsidized?

I just want unlocked phones PERIOD. This phone is the exception to the rule. The only reason the iPhone is locked is for Apple to make extra money. Greeeeeed.

Just make the damn phone unlocked in the first place. I'm sick of locked handsets. Don't tread on me if I'm unlocking phones and selling them.
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mikasn

Feb 7, 2008, 11:10 PM
Can everybody say Al Qaeda, drug dealers and the mafia?
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tnt2k1

Feb 7, 2008, 11:46 PM
greed? Uhmm ... what is the objective of a For-Profit Organization?
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chainmail311

Feb 8, 2008, 12:44 PM
Sure, use an extreme example to make your point.

First of all, when you buy a prepaid phone, you don't have to give your personal information out at all. Thus, defeating the purpose of your "argument."

Second: Criminals will always find a way to do what they want, legal or not. I should not have to live with crappy laws because they're created to prevent criminals from breaking the law. They're damn criminals, they don't care. They'll find a way around it.

Like Gun laws for example: Make guns illegal in America. What happens? You take the guns OUT of the hands of law abiding citizens. Do mafia or crime lords care about the no gun law? No, they'll import guns. Then, guns are in the hands of those that don't care about law, and out of...
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maokh

Feb 8, 2008, 2:47 PM
So you are saying that an international terrorist organization, specifically Al Qaeda, is stealing subsidy from at&t?

Wow...this must be somewhere in the back of the Iraq intelligence report. 🙄

In that case, we should imprison everyone who purchases a prepaid phone but does not activate it and charge them with aiding terrorism. I am certain you could pull credit card records and security camera footage and do some easy correlation.
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Globhead

Feb 8, 2008, 6:22 PM
We have an invoice proving Al Qaeda bought a special edition Uranium Yellowcake Xpress-On faceplate for their unlocked Nokia 1112, so yeah, it's true.
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algorithmplus

Feb 8, 2008, 6:02 PM
mikasn said:
Can everybody say Al Qaeda, drug dealers and the mafia?

Can anybody say "We the jury find 65 year old Grandma Smith GUILTY on all accounts of aiding heinous illegal activities for the purchase of an AT&T GoPhone because she didn't want to sign a 2 year contract and pay for a $90 per month plan."?

I know at least one person who can say that.

The point is there will always be those who try to take advantage of others. Another argument might be is that since there are many unscrupulous doctors out there, we should ban doctors from practicing medicine. This makes no sense, as the greater good outweighs the greater evil. There is one thing that can be done, however. Phone companies can stop...
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Globhead

Feb 8, 2008, 6:32 PM
"Phone companies can stop selling prepaid phones."

Or they could continue selling them, but at a reasonable price. That would solve it too.
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Globhead

Feb 8, 2008, 1:22 AM
Top-end and specialty phones are often not really discounted just because the carrier can get away with it (no way did an iPhone cost $800 to make). The N75 is not likely to get as much of a discount as a mid-range phone (often free w/ activation).

But the topic at hand is prepaid phones. Motorola c-series for $10, Nokia 2610 for $20, Samsung t219 for $30, etc, all well under a sustainable selling price.
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CS2006

Feb 8, 2008, 9:38 PM
Funny that everyone mentions the iPhone. AT&T makes little or nothing on them, maybe 5 bucks. Selling Apple products means Apple retains all of the profits. Keep in mind they could have opened it up for T-Mobile as well as AT&T. This just merely fits in Apple's business model of keeping all of the profits and limiting availability. How do you think AT&T dealers feel about being locked out of the iPhone business?
Doing business with Apple is dancing with the devil but for some reason their brand is about the hottest brand out there so you kind of have to do business with Apple. It is expected.

This is unlawful because of licensing issues and an old law about theft of service which could apply here.

It's not about if we agree with the ...
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