> Seems that we can’t both get what we want.

Why can't you? They don't want to provide info for a credit check, you want human accountability. All that requires is for them to use a debit card for whatever service (prepaid or postpaid). Law enforcement can trace that if needed. No need for credit checks or really any other information directly in the hands of the telco.

This is an argument in favor of KYC requirements for telcos, just that it assumes they can outsource it to banks.

Indeed. Given the KYC requirements for getting a credit card, it seems that paying with a credit card should confer traceability for LE.