I'll try and answer as many as I can.
Each device on a mobile network has an IMEI (International Mobile Equipment Identity) which is a unique number identifying the specific phone. While this identifies the device the customer is using, the IMSI (International Mobile Subscriber Identity) is used to actually track the customer on the network (so that their calls can be routed to them). The IMSI is stored on the SIM card and should be unique to the specific phone "line"
I have no specific experience of this, but when you report a phone lost/stolen in the UK, the IMEI is added to an international blacklist and should no longer be allowed on mobile networks in many countries around the world. Most networks only check the IMEI of a device against that blacklist when it first connects to the network.
At the same time, the SIM inside the phone will be disabled, meaning that it can't be used anymore. The combination of the two blocks should make the phone useless pretty quickly. Sometimes the networks are slow at getting these blocks processed, but customers aren't liable for fraudulent usage once they report the device as stolen.
Networks do not generally use IMEIs for anything once the device has joined the network.
In terms of postpaid (contract or pay monthly) plans, they often do just supply the service and bill it later. Often the network's billing systems are quite slow to respond to usage.
In the case of prepaid (pay as you go), they simply check (using systems "at their end") whether or not the customer has enough credit to use the specific service. If you don't have enough credit, you get a recorded message explaining that. As it's essential that they can tell in real time how much credit a customer has remaining, these systems are more reliable. Some old systems relied on storing the credit on the phone itself, but that was too easy to tamper with.




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