Method and apparatus for a unit locked against use until...

Electrical computers and digital processing systems: support – Multiple computer communication using cryptography – Particular communication authentication technique

Reexamination Certificate

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Reexamination Certificate

active

06550010

ABSTRACT:

FIELD OF THE INVENTION
The present invention relates generally to the field of wireless communications systems, and relates particularly to the field of activation of wireless units used in wireless communications systems.
BACKGROUND
The advance of technology in telecommunications has allowed a large segment of the population to own and to use wireless units operating on wireless communications systems. Wireless units such as cellular telephones and personal communication system (PCS) devices have been particularly popular. The delivery of service to these wireless units by wireless communications service providers is a competitive yet profitable endeavor. Service providers continue to seek ways to satisfy customers, and to improve and manage wireless service so as to continue to profit by the delivered services.
One manner in which service providers seek to better serve and to obtain customers is to provide for retail outlets where a customer may purchase a wireless unit and have it activated for use. A specific retail outlet may sell wireless units from many different manufacturers, but typically, a retail outlet has an exclusive relationship with a specific service provider. As part of this exclusive relationship, the retail outlet activates wireless units purchased at the retail outlet only on the network of the specific service provider. In other words, generally, when a customer purchases a wireless unit at a specific retail outlet, the wireless unit is activated so that wireless communications service to that wireless unit is provided by the service provider that has an exclusive relationship with the specific retail outlet. In return for this activation, the service provider typically pays the retail outlet a commission for each sale and activation of a wireless unit. This commission often is not insignificant with respect to the purchase price of a wireless unit.
Another manner in which service providers seek to obtain customers is to offer a subsidy with respect to the purchase price of a wireless unit when the wireless unit is activated on the network of the service provider. For example, a wireless unit's retail cost without subsidy may be $300. A service provider may subsidy the cost of the wireless unit by paying a commission of a significant amount such as $100 or more so long as the wireless unit is activated on the network of the service provider. Of course, the service provider anticipates that it will recoup its subsidy as a result of the long term service that is provided to the customer. This subsidization has been welcomed by many customers as a way in which to obtain a wireless unit that may otherwise be too expensive to purchase.
To purchase and activate a wireless unit at a retail outlet, a customer may select a particular brand and/or type of wireless unit. Typically, a sales clerk in the retail outlet then takes information from the customer including credit information so the customer may be qualified for wireless service from the service provider associated with the retail outlet. If the customer proves credit worthy, the sales clerk takes additional steps to activate the wireless unit to the network of the associated service provider. Once the activation is accomplished, the customer is handed his or her wireless unit and informed of his or her wireless directory number. The customer then typically may commence to make use of his or her newly activated wireless unit.
The purchase of a wireless unit at a retail outlet as explained above has advantages, but it also has disadvantages. From the customer's perspective, a disadvantage is that the purchase and activation process at the retail outlet takes a relatively long period of time. During busy periods, such purchase and activation may take up to two-three hours or more. Another disadvantage is that the purchase and activation process must be accomplished during the business hours of the retail outlet. Typically, business hours coincide with a customer's workday schedule or carry over into the early evening hours when the customer may be interested in following other pursuits. Yet another disadvantage is that during the purchase and activation process in a retail outlet the customer generally must provide a sales clerk with confidential information. A customer may have some trepidation about providing a sales clerk with confidential information such as the customer's income level, credit card numbers, etc. Thus, from a customer's perspective, the purchase and activation of a wireless unit in a retail outlet has at least the disadvantages of consuming time and energy during hours when a customer is most likely to be engaged in other pursuits and of raising security and privacy concerns.
The purchase and activation of a wireless unit in a retail outlet has disadvantages from the retail outlet's perspective as well. The retail outlet may sell other products or have other business than the wireless units. The lengthy purchase and activation process with respect to a wireless unit takes time and takes sales clerks away from the other business of the retail outlet. At times, the retail outlet may be overwhelmed with customers interested in purchasing and activating wireless units so the retail outlet cannot service all of such customers and/or the customers of its other business. Further, the retail outlet may be required to obtain special equipment and programs to sell and activate the wireless units and to keep such special equipment and programs confidential. The special equipment and programs and the confidentiality thereof may overburden the retail outlet.
The purchase and activation of a wireless unit in a retail outlet also has disadvantages from the perspective of a service provider. A disadvantage to the service provider is that it must pay a not insignificant commission to the retail outlet for each wireless unit that is purchased and activated to the network of the service provider. Another disadvantage is that the service provider must take some monitoring steps with respect to the retail outlet to assure that the purchase and activation process does not lead to abuses such as theft of confidential information relating to the wireless units or to customers.
An alternative to the purchase and activation of a wireless unit in a retail outlet is to allow a customer to activate a wireless unit that he or she has purchased at a retail outlet, through a catalog, or wherever. This alternative is welcomed by the many customers who do not want to spend the time for the lengthy purchase and activation process to be carried out in a retail outlet, and by the customers who do not desire to disclose confidential information in as unrestricted an environment as the retail outlet. But this alternative has a principal disadvantage. This disadvantage is that wireless units sold without accompanying activation are sold generally without a subsidy. In other words, a customer who desires to avoid the lengthy purchase and activation process at the retail outlet typically has to forego the savings offered by the considerable subsidy of wireless units sold in retail outlets.
It would appear that service providers could easily address this disadvantage by subsidizing all wireless units. But this is impractical. A service provider subsidizes a wireless unit by paying a commission on a wireless unit that is sold at a retail outlet because a wireless unit that is sold at a retail outlet is also activated to the network of the service provider. The service provider is generally assured it will recoup its subsidy by servicing the wireless unit. When a customer purchases a wireless unit at a place, other than a sponsored retail outlet, there is no assurance the customer will activate the wireless unit to the network of any particular service provider. The customer may take advantage of a subsidy provided by a service provider for the purchase of the wireless unit and then take advantage of an advantageous service contract from another service provider.
Some service providers have subsidized

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