Tracfone: Without The DMCA, We're Nothing
from the lawyers-running-the-company dept
When the Library of Congress and the Copyright office released their latest list of exemptions from the DMCA anti-circumvention rule, the ability to unlock mobile phones was included. This means consumers can remove the software locks on their devices that prevent ones sold by one carrier from working on another's network. Operators use the locks in order to try and protect the subsidies they spend on devices, which lower their cost to consumers. For quite some time, operators have been saying they want to end these subsidies, but they've really done little to actually do so -- since they allow for the use of locked handsets and contracts with high early-termination fees that serve as significant obstacles to customers who want to change providers. Adding handset locks to the DMCA exemptions probably won't have a huge impact, but it could allow some users to change operators at a lower cost (contract fees and ETFs notwithstanding). However, prepaid provider Tracfone says that the ruling will undermine its business because people will simply buy its cheap, no-frills handsets, unlock them, and take them to another provider. Their devices are prepaid, so there's no contract and no ETF, and hence no way for them to guarantee their subsidy. Unsurprisingly, the company is considering suing to get the exemption overturned, nicely following its history of using the DMCA and copyright lawsuits to protect its business model. Once again, this is exactly how the DMCA is not supposed to be used. It sounds more like Tracfone's got a flimsy business model that can't work without special legal protection: after all, most prepaid operators minimize or eliminate their device subsidies because they have no way to guarantee that users will spend enough to recoup the expense. In the end, though, Tracfone and other operators should still be able to try to prevent users from unlocking their phones contractually -- there's no need to rely on the DMCA, so in actuality, this ruling may not carry a lot of meaning.Thank you for reading this Techdirt post. With so many things competing for everyone’s attention these days, we really appreciate you giving us your time. We work hard every day to put quality content out there for our community.
Techdirt is one of the few remaining truly independent media outlets. We do not have a giant corporation behind us, and we rely heavily on our community to support us, in an age when advertisers are increasingly uninterested in sponsoring small, independent sites — especially a site like ours that is unwilling to pull punches in its reporting and analysis.
While other websites have resorted to paywalls, registration requirements, and increasingly annoying/intrusive advertising, we have always kept Techdirt open and available to anyone. But in order to continue doing so, we need your support. We offer a variety of ways for our readers to support us, from direct donations to special subscriptions and cool merchandise — and every little bit helps. Thank you.
–The Techdirt Team
Reader Comments
Subscribe: RSS
View by: Time | Thread
[ link to this | view in chronology ]
Re:
[ link to this | view in chronology ]
[ link to this | view in chronology ]
It is like Microsoft taking a loss on the XBox console, and then making money because it will only play Xbox games.
[ link to this | view in chronology ]
Oops!
http://en.wikipedia.org/wiki/Motorola_V710 if you're curious.
I always forget that in this day and age just because I buy something doesn't mean I own it. Meh.
[ link to this | view in chronology ]
Great news!!!!
Vote with your feet, don't use Verizon until the stop the lowlife practice that they stupidly use and thereby give themselves a bad and dishonest name/image!
THANK GOODNESS FOR THIS RULING!
[ link to this | view in chronology ]
Re: Great news!!!!
They sell Tracfone's in the Walmart here, but they don't actually work in the Walmart, it's a "feature".
[ link to this | view in chronology ]
Contractually?
[ link to this | view in chronology ]
but, it's tracfone's fault, right? they sell phones as a loss leader, and make it up with their minutes charging. the xbox thing is close tho. ms, sony, nintendo sell the consoles at a low price, and make up money on the games and accessories they sell. however, this law would be like saying you can hack your old xbox to play 360, ps3, and wii games on it. thus, ms would lose money because you buy ps3 and wii games as well. (but then again, you'd buy 360 games and the company wouldn't lose money on a console)
humm...my head hursts now.
[ link to this | view in chronology ]
Yes, bad Verizon
The idea was to transfer ringtones, photos, other media, and such over bluetooth instead of the carrier network. Verizon obviously didn't think your cell phone bill was high enough, so they locked the bluetooth down to drive network revenue.
I came out ahead. I moved into an office building where Verizon didn't have coverage and used the class action lawsuit to get the money back on my 1 year old phone. This is after having hacked it to enable the missing features.
[ link to this | view in chronology ]
And...
Unlocked Japanese 4G cellie + MetroPCS = ^^
[ link to this | view in chronology ]
it is about time
I have always hated how companies try to get you to go to their wireless service by offering a special phone that only works with their service and a lot of times all of the features of the phone are not enabled, like the treo 650 deal.
I want to pick my phone and my service not have to choose which company has less checks in there no column.
Cheers for the consumer...screw the corporations!
[ link to this | view in chronology ]
Re: it is about time
[ link to this | view in chronology ]
Phones
And why the heck does it cost 10 cent to send a TXT MSG biggest rip off in the history of the world those should be free.
[ link to this | view in chronology ]
i wonder if you can unlock a jitterbug
it's a mobile for retards that looks like it's made by fisher-price. the TV commercials feature old people using their phones and smiling. it's hillarious.
[ link to this | view in chronology ]
Re: i wonder if you can unlock a jitterbug
[ link to this | view in chronology ]
Re: i wonder if you can unlock a jitterbug
[ link to this | view in chronology ]
MVNO
[ link to this | view in chronology ]
When I saw the bit about expiring minutes, I said . . . no thanks. My minutes would always expire, unless I had an emergency.
It's not enough for them to have your prepay? Screw any company that has expiring minutes!
It's just a baseless money-grab. There's no other reason for it.
[ link to this | view in chronology ]
Re: expiring Tracfone minutes? not mine.....
Phone & coverage works GREAT. Free Voicemail. Good battery life. So now I use it as my regular cell phone. Good coverage, better than Virgin in the western states; CA, CO, UT, WY, AZ, etc. I drive long distances through these areas--very rarely have service drop out except canyons in remote areas. Also better than fellow traveler's Cingular service--I can call, they can't get signal?
THE KEY: Get the SINGLE RATE MODELS(s)!! Not obvious: Not always printed on package in stores. Search Tracfone site to see which ones. (only about 3 have "Single Rate status".) All others models charge roaming rate of 1-minute-equals you pay-for TWO mins.!. Single rate phone, however, always same low rate even when phone is roaming outside your home area. Remember actual Rate is a function of how you select your refill cards: BUY at the start, the Double minute/1Yr card. Purchased minutes never expire: but your 'service units' DO--and if you don't get more service units within 60 days of expiry, THEN, only then, you could lose banked minutes. So be sure to purchase cards wisely; can load up to just over 700 days of service IF you combine the right cards (don't buy high end-cost 20 & 40 dollar cards that have puny accompanying SERVICE units on them......only 60 serv. units on these...) The proper purchase of cards means 10-12 cents per minute calls. Since the screen ALWAYS tells you your due date for SERVICE days/units, you have no excuse to risk losing your minutes, just get more units on time. (grace period is nice.) Read the fine print.....save money. Don't fall for the 'pretty' models w/ low battery life--go for Single rate. T'fone counts on most buyers falling for the slightly cooler models, and these roaming-rate ones subsidize the few single-rate no-bells-no-whistles ones. Only Con is that Tracfone so widely used (and to good effect if you pay attention)-the website is sometimes slow, but not always. Anyway you can input refill cards direct on phone now. A happy (wise) user.
[ link to this | view in chronology ]
Re: expiring minutes?
[ link to this | view in chronology ]
Re: Re: expiring minutes?
[ link to this | view in chronology ]
Mobiles to networks and vice versa
It won't work any longer
Get used to the new found freedom that the public want.
[ link to this | view in chronology ]
tracfone Sucks
[ link to this | view in chronology ]
Ten Million Subscribers
[ link to this | view in chronology ]