Set forth below are excerpts from FCC rules and policy statements regarding cloning and/or modification of the electronic serial number (ESN) in cellular phones. ================= TABLE OF CONTENTS ================= A. Federal Communications Commission Report and Order (CC Docket Nos. 92-115, 94-46, and 93-116) Adopted: August 2, 1994 Released: September 9, 1994 Rule Changes Effective: January 1, 1995 1. Excerpt, Parapgraphs 54-63 2. Excerpt, Appendix A Detailed Discussion of Part 22 Rule Amendments Section 22.919 Elecrtonic serial numbers. 3. Excerpt, Appendix B - Final Rules New FCC Rule Section 22.919 47 C.F.R. Section 22.919 B. FCC's Stated Position on Rules and Policy Prior to Rule Changes in CC Docket No. 92-115 If you have any questions, please feel free to contact me: Bob Keller (KY3R) ============================== Robert J. Keller, P.C. ------------------------------ Federal Telecommunications Law 4200 Wisconsin Ave NW #106-261 Washington, DC 20016-2143 USA ------------------------------ Internet: rjk@telcomlaw.com Telephone: +1 301.229.5208 Facsimile: +1 301.229.6875 CompuServe UID: 76100.3333 ============================== =========================================================== A. Federal Communications Commission Report and Order (CC Docket Nos. 92-115, 94-46, and 93-116) Adopted: August 2, 1994 Released: September 9, 1994 Rule Changes Effective: January 1, 1995 =========================================================== -------------------------- 1. Excerpt, Parapgraphs 54-63: -------------------------- Cellular Electronic Serial Numbers 54. Proposal. We proposed in the Notice a new rule (Section 22.919) intended to help reduce the fraudulent use of cellular equipment caused by tampering with the unique Electronic Serial Numbers (ESN) that identify mobile equipment to cellular systems. The purposes of the ESN in a cellular telephone are similar to the Vehicle Identification Numbers in automobiles. That is, it uniquely identifies the equipment in order to assist in recovery if it is stolen. More importantly, in the case of cellular telephones, the ESN enables the carriers to bill properly for calls made from the telephone. Any alteration of the ESN renders it useless for this purpose. The proposed rule explicitly establishes anti-fraud design specifications that require, among other things, that the ESN must be programmed into the equipment at the factory and must not be alterable, removable, or in any way able to be manipulated in the field. In addition, the proposed rules require that the ESN component be permanently attached to a main circuit board of the mobile transmitter and that the integrity of the unit's operating software not be alterable. 55. Comments. The commenters generally support our proposal,[94] but they suggest some modifications. For example, BellSouth, Southwestern Bell, GTE, and CIA suggest that our proposal should be modified to provide that equipment already manufactured, is exempt from the rule.[95] They argue that subjecting existing phones to this rule would be very expensive and difficult, if not impossible, to implement. Therefore, they recommend that the rule apply only to phones manufactured after a particular date.[96] NYNEX recommends that we not require the ESN chip to be secured to the main circuit board of the mobile transmitter as proposed. Rather, NYNEX suggests that the ESN chip be attached to the frame of the radio and attached to the logic board by cable.[97] In addition, it recommends that operating sofrware be encoded or scattered over different memory chips.[98] Motorola, Inc. (Motorola) and Ericsson Corp. (Ericsson), two manufacturers of cellular mobile equipment, suggest that the proposal be modified to allow authorized service centers or representatives to make necessary and required changes to ESNs in mobile and portable units in the field.[99] 56. Southwestern Bell recommends that the rule also apply to mobile equipment associated with a wireless private branch exchange (PBX).[100] CTIA suggests that the proposal be modified in several respects. First, it states that we should clarify that requiring a mobile transmitter to have a "unique" ESN, means that any particular ESN will not exist in more than one mobile unit. Second, CTIA suggests that ESN manipulation not be permitted "outside a manufacturer's authorized facility." Third, it requests that cellular mobile units be required to be designed to comply with the "applicable industry standard for authentication."[101] New Vector supports the proposed rule, but emphasizes that the ESN criteria should be incorporated into the type-acceptance rules to clarify that manufacturers will be subject to the Commission's enforcement procedures if they do not comply with the ESN requirements.[102] 57. C2+ Technology (C2+) requests that we allow companies to market ancillary cellular equipment that emulates ESNs for the purpose of allowing more than one cellular phone to have the same telephone number. It argues that emulating ESNs in the way it describes benefits the public, does not involve fraud, and retains the security and integrity of the cellular phones.[103] In opposition, Ericsson asserts that the rules should include procedures to ensure that ESNs are not easily transferable through the use of an encrypted data transfer device.[104] Similarly, New Par suggests that the proposed rule proscribe activity that does not physically alter the chip yet affects the radiated ESN by translating the ESN signal that the mobile unit transmits.[105] 58. Discussion. The record before us demonstrates the need for measures that will help reduce the fraudulent use of cellular equipment caused by tampering with the ESN. We therefore adopt the proposed rule for the reasons set forth below. 59. Contrary to the suggestion of one commenter, the ESN rule will not prevent a consumer from having two cellular telephones with the same telephone number. Changing the ESN emitted by a cellular telephone to be the same as that emitted by another cellular telephone does not create an "extension" cellular telephone. Rather, it merely makes it impossible for the cellular system to distingnish between the two telephones. We note that Commission rules do not prohibit assigmnent of the same telephone number to two or more cellular telephones.[106] It is technically possible to have the same telephone number for two or more cellular telephones, each having a unique ESN.[107] If a cellular carrier wishes to provide this service, it may. In this connection, we will not require that use of cellular telephones comply with an industry authentication procedure as requested by CTIA, as this could have the unintended effect of precluding multiple cellular telephones (each with a unique ESN) from having the same telephone number. 60. Further, we conclude that the practice of altering cellular phones to "emulate" ESNs without receiving the permission of the relevant cellular licensee should not be allowed because (1) simultaneous use of cellular telephones fraudulently emitting the same ESN without the licensee's permission could cause problems in some cellular systems such as erroneous tracking or billing; (2) fraudulent use of such phones without the licensee's permission could deprive cellular carriers of monthiy per telephone revenues to which they are entitled; and (3) such altered phones not authorized by the carrier, would therefore not fall within the licensee's blanket license, and thus would be uniicensed transmitters in violation of Section 301 of the Act. Therefore, we agree with New Par and Ericsson that the ESN rule should proscribe activity that does not physically alter the ESN, but affects the radiated ESN, including activities that transfer ESNs through the use of an encrypted data transfer device. 61. With respect to the proposal to allow alteration of ESNs by manufacturers' authorized service centers or representatives, we note that computer software to change ESNs, which is intended to be used only by authorized service personnel, might become available to unauthorized persons through privately operated computer "bulletin boards". We have no knowledge that it is now possible to prevent unauthorized use of such software for fraudulent purposes. Accordingly, we decline to make the exception requested by Motorola and Ericsson. 62. We further agree with the commenters that it would be impractical to apply the new rule to existing equipment. Accordingly, we are not requiring that cellular equipment that is currently in use or has received a grant of type-acceptance be modified or retrofitted to comply with the requirements of this rule. Thus, the ESN rule will apply only to cellular equipment for which initial type-acceptance is sought after the date that our rules become effective. Nevertheless, with regard to existing equipment, we conclude that cellular telephones with altered ESNs do not comply with the cellular system compatibility specification[108] and thus may not be considered authorized equipment under the original type acceptance. Accordingly, a consumer's knowing use of such altered equipment would violate our rules. We further believe that any individual or company that knowingly alters cellular telephones to cause them to transmit an ESN other than the one originally installed by the manufacturer is aiding in the violation of our rules. Thus, we advise all cellular licensees and subscribers that the use of the C2+ altered cellular telephones constitutes a violation of the Act and our rules. 63. With respect to NYNEX's proposed modifications for securing the ESN chip to the mobile transmitter, the record does not convince us that these modifications will make the ESN rule more effective. Therefore, we do not adopt NYNEX's proposal. We agree with Southwestern Bell that the ESN rule should apply to mobile equipment associated with wireless PBX if the equipment can also be used on cellular systems. We also clarify that the new ESN rule prohibits the installation of an ESN in more than one mobile transmitter. Finally, as suggested by New Vector, we amend the type-acceptance rule to refer to the newly adopted ESN rule.[109] [Footnotes] [94] See PacTel Comments at 2; CTIA Comments at 7-8. [95] BellSouth Comments at Appendix 2, p.36; Southwestern Bell Comments at 28-29; GTE Comments at 30; CTIA Comments at 8. [96] For example, BellSouth suggests that the anti-fraud measures should not apply to equipment type-accepted before January 1, 1993. [97] NYNEX Comments at 8. [98] Id. at 8-9. [99] Ericsson Reply Comments at 2-5; Motorola Reply Comments at 3. [100] Southwestern Bell Comments at 29. [101] CTIA Comments at 8. [102] New Vector Comments at Appendix I, p.44. [103] C2+ Comments at 1-2. [104] Ericsson Reply Comments at 3-4. [105] New Par Comments at 21-22. [106] The telephone number is referred to in the cellular compatibility specification as the Mobile Identification Number or "MIN" [107] It is not technically necessary to have the same ESN in order to have the same telephone number. Nevertheless, the authentication software used by some cellular systems does not permit two cellular telephones with the same telephone number. In such cases, cellular carriers should explain to consumers who request this service that their system is not yet capable of providing it. [108] See old Section 22.915, which becomes new Section 22.933 in Appendices A and B. [109] See discussion of new Section 22.377 in Appendix A. ---------------------------------------------- 2. Excerpt, Appendix A Detailed Discussion of Part 22 Rule Amendments Section 22.919 Elecrtonic serial numbers. ---------------------------------------------- Section 22.919 Electronic serial numbers. The purpose of this new section is to deter cellular fraud by requiring that the Electronic Serial Number (ESN) unique to each cellular phone be factory set, inalterable, non-transferable, and otherwise tamper-proof and free of fraudulent manipulation in the field. This subject received substantial attention from commenters and is discussed in the Report and Order. --------------------------------- 3. Excerpt, Appendix B - Final Rules New FCC Rule Section 22.919 47 C.F.R. Section 22.919 --------------------------------- 22.919 Electronic serial numbers. The Electronic Serial Number (ESN) is a 32 bit binary number that uniquely identifies a cellular mobile transmitter to any cellular system. (a) Each mobile transmitter in service must have a unique ESN. (b) The ESN host component must be permanently attached to a main circuit board of the mobile transmitter and the integrity of the unit's operating software must not be alterable. The ESN must be isolated from fraudulent contact and tampering. If the ESN host component does not contain other information, that component must not be removable, and its electrical connections must not be accessible. If the ESN host component contains other information, the ESN must be encoded using one or more of the following techniques: (1) Multiplication or division by a polynomial; (2) Cyclic coding; (3) The spreading of ESN bits over various non- sequential memory locations. (c) Cellular mobile equipment must be designed such that any attempt to remove, tamper with, or change the ESN chip, its logic system, or firmware originally programmed by the manufacturer will render the mobile transmitter inoperative. (d) The ESN must be factory set and must not be alterable, transferable, removable or otherwise able to be manipulated in the field. Cellular equipment must be designed such that any attempt to remove, tamper with, or change the ESN chip, its logic system, or firmware originally programmed by the manufacturer will render the mobile transmitter inoperative. ============================================= B. FCC's Stated Position on Rules and Policy Prior to Rule Changes in CC Docket No. 92-115 ============================================= PUBLIC NOTICE FEDERAL COMMUNICATIONS COMMISSION COMMON CARRIER PUBLIC MOBILE SERVICES INFORMATION October 2, 1991 Report No. CL-92-3 CHANGING ELECTRONIC SERIAL NUMBERS ON CELLULAR PHONES IS A VIOLATION OF THE COMMISSION'S RULES It has come to the attention of the Mobile Services Division that individuals and companies may be altering the Electronic Serial Number ( ESN) on cellular phones. Paragraph 2.3.2 in OST Bulletin No. 53 (Cellular System Mobile Station - Land Station Compatibility Specification, July, 1983) states that "[a]ttempts to change the serial number circuitry should render the mobile station inoperative." The 1981 edition of these compatibility specifications (which contains the same wording) was included as Appendix D in CC Docket 79-318 and is incorporated into Section 22.915 of the Commission's rules. Phones with altered ESNs do not comply with the Commission's rules and any individual or company operating such phones or performing such alterations is in violation of Section 22.915 of the Commission's rules and could be subject to appropriate enforcement action. Questions concerning this Public Notice should be addressed to Steve Markendorff at 202-653-5560 or Andrew Nachby at 202-632-6450.