Sounds like always-on DRM. The rich and the technologically adept will be unaffected, but another hammer will be available for our ambivalent rulers to manipulate normal people. This shitty DRM better be opt-in. Fined $2,500 for every device sold lacking this DRM? Only if there is a $2,500 refund for every device accidentally bricked. I can see media companies loving this. Watching an unlicensed movie? Your phone is…
Hmm. What happens to this with jailbroken phones? I can see it going two ways: - killswitch is in the OS, and can be removed by jailbreak. Good for user, but means you just have to jailbreak a stolen phone to recover it / prevent it being killed. - killswitch is in the baseband, and cannot be removed. Uhoh.
Despite noble intentions, anti-theft DRM is actually the worst kind there is. It is impossible* to differentiate between a thief in possession of your phone, and you in possession of a company's phone that they're considering you renting.
If this becomes reality, it's yet another bullet point for getting a separate MiFi + actual computing device next time I'm forced to upgrade. That's the only way of regaining the concept of a service demarcation point.
(* unless every device is given a different root key, and the owner actually manages the corresponding private key. given the usability issues, this will never happen in a commercial design).