""It can flag suspicious purchases, deny unlocking to devices that show signs of trafficking, and pursue legal or contractual remedies against fraudulent actors," the groups said. "The Commission has previously found that 60 days is a reasonable and sufficient period to allow providers to identify and act upon fraudulent behavior. Verizon has not shown that these prior determinations were in error or that its current loss mitigation measures are being overwhelmed solely because of the unlocking rule.""
"Verizon issued a statement thanking the FCC for the waiver. "The FCC's action will end bad actors' ability to exploit the FCC's unlocking rules to profit from easier access to expensive, heavily subsidized devices in the US that they traffic and sell to other parts of the world," Verizon said. "Before today's decision, the FCC's rules have benefitted these international criminal gangs at the expense of legitimate American consumers.""
The FCC granted Verizon a waiver from the 60-day handset unlocking rule after determining the period has been insufficient to deter fraud. The agency cited globalization of 4G LTE and 5G technologies and the existence of overseas markets and black markets that absorb fraudulently obtained or stolen handsets, including countries that do not participate in GSMA blocking. The waiver aims to reduce theft-driven trafficking, ease law enforcement burdens, and give providers more time to detect and block fraudulent activity. Verizon welcomed the waiver, while the NCTA voiced displeasure.
Read at Ars Technica
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