From the article: "This change does not impact the spirit of that agreement as it is designed to deter theft by those who engage in identity theft or other fraud," said a spokeswoman for Verizon. "It is not inconsistent with our obligations under the C block."Are they allowed to even do this? When they won the 700mhz spectrum in 2008 the FCC ruled that e)Handset locking prohibited. No licensee may disable features on handsets it provides to customers, to the extent such features are compliant with the licensee's standards pursuant to paragraph (b)of this section, nor configure handsets it provides to prohibit use of such handsets on other providers' networks.
Sounds like they're betting that since this is a "temporary lock", the FCC won't have any problems with it. Verizon just haven't defined how long "temporary" is.