Why some folks bulk buy cellphones -- I finally found an answer...

[Bozita]

...and it makes sense.


http://www.detnews.com/apps/pbcs.dll/article?AID=/20060815/METRO/608150349/1003

-snip-

Moneymaking schemes

Mike Newman, vice president of ReCellular Inc. in Dexter, said certain companies will sell prepaid telephones at a loss because the phones are programmed so they only can be used with that particular company's telephone calling cards.

Newman said he's heard of a possibly illegal scheme involving middlemen who know how to unlock the software so the phones are no longer dependent on one company's calling cards or pre-paid services.

Derek Hewitt, senior vice president of marketing for TracFone in Miami, said similar schemes in which his company's phones are bulk-purchased and altered so they can be used without TracFone service "cause extensive losses" to his company.

Manufacturers' concerns are the reason Wal-Mart limits cell phone sales to three phones per transaction, the company said in a statement.

-snip-

more...

[Olney Blue]

1. Why would a terrorist need hundreds of cell phones to detonate

a bomb? This makes much more sense.

[Tin Man]

7. The bomb detonator story is off-target; a more reasonable explanation

A more reasonable explanation for the potential misuse of hundreds disposable cell phones: terrorists could theoretically defeat the new "NSA monitoring program" (which monitors patterns in communications traffic to identify suspicious networks) by frequently switching to a new phone. For example, TerroristA and TerroristB could employ a strategy in which they each buy X number of cell phones, record a list of the cell phone numbers in their possession, then exchange lists with each other - while agreeing that every Sunday at midnight, they will dispose of the previous phone and advance to the next phone on the list. This would make it more difficult for either phone monitoring and/or wiretapping programs to alert on terrorist conspiracies, because the communication histories span a chain of phone numbers, making it much more difficult to recognize patterns of communication between the parties.

[warrens]

10. They don't even have to get rid of them

Just call one of a hundred numbers in an agreed-upon random sequence.

[sallyseven]

14. These guys were practicing

Good old free enterprise. Buy low sell high. If that is terrorism then we are all in trouble. Guess they weren't repuke enough.

[fishwax]

18. like on "The Wire"

the last season of the HBO series (about drug dealers and cops in baltimore) was heavily concerned with the use of "burner" cells by the dealers in order to avoid the threat of wiretaps.

[Olney Blue]

22. Thanks, Tin Man. Interesting post.

[Buzz Clik]

11. True. But a sleazeball making small profits won't make you shit your pants

Terrorist threats might.

It's all about ignorance and fear.

[NMDemDist2]

2. that's what I thought yesterday but didn't know it was a "scheme"

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=132&topic_id=2779136&mesg_id=2779224

[Bozita]

3. Thanks, the battery thing also makes sense

[Name removed]

4. Deleted message

Message removed by moderator. Click here to review the message board rules.

[angstlessk]

6. home of the brave, indeed...bush has turned out nation into a bunch

sniveling, whining cowards...can we now have a NEW national anthem?

Thaaa LaAAAnd of the skerrrred
and the hOME of the cowed.

[lectrobyte]

8. Not only that, I think they are showing us that they can screw with us

any time they want. Not to mention the "is this WalMart clerk going to turn me in because I tried to buy 4 phones instead of just 3" or the "did I buy too much sinus medicine this month, hay fever is terrible here in drought land" general paranoia...

[Buzz Clik]

13. How mean. We MUST give up all our rights to let * protect us.

[Sinti]

16. "you are big quivering pussies" Why do you insult muffins??? n/t

[dipsydoodle]

5. Same as computer printers

I read ages ago that HP and Epsom etc sell their printers at a loss and make their money on aftermarket consumables. The same actually appied to the original British Motor Corporation Mini cars back in the sixties - all were sold at a loss to BMC who made eventually made their money on the spares.

When I first heard of the 'phone bust I didn't think for one minute it would be terra related. Just some guys making a few bucks.

[Zynx]

9. I know this for a fact.

Even the retailers(I work at OfficeMax) sell the printers at a very small mark-up(usually only about 5%) and sell the ink at a 70% mark-up or so. HP makes almost all of its money on ink and toner.

[Cocoa]

12. printer ink is a gigantic scam

:mad:

[Zynx]

15. Also, newer printers break all the time.

They used to be real workhorses, but now printers have become much less reliable.

HP and the rest of them are also shrinking ink cartridges quite a lot. For example, you areable to buy the HP #56 black ink cartridge, an older cartridge, for $19.99 and it has 19 ml of ink. Now the HP #92, a new cartridge, has only 5 ml of ink and costs $12.99. Do the math.

[Javaman]

17. Actually, there is another reason...

via electrolysis, various precious metals can be extracted from the circuit boards of the phones.

In one old phone, there may not be a whole lot, but in hundreds if not thousands, the money really adds up.

I looked into it a while back, but the cost of the removal of the various chems needed plus all the EPA rules involved frightened me away.

[Bozita]

19. Thom Hartmann just read this snip on the air

[alcibiades_mystery]

20. Basic arbitrage transaction

I don't understand what's so difficult here...

[Bozita]

21. kick