To understand what an unlocked cell phone is, it is important to first understand what a locked cell phone is. A locked cell phone is a cell phone that can only be used with one cellular service provider. In contrast, an unlocked cell phone can be used with any cellular service provider.
When a cell phone is locked, it will only recognize a SIM (Subscriber Identification Module) card that is issued by the cellular service provider which the cell phone is locked to (a SIM card is a microchip that stores data and provides cellular service once inserted into a cell phone). In regards to locked cell phones, a SIM card can only be transferred between cell phones that are issued by the same cellular service provider.
If a cell phone is unlocked, it can recognize any SIM card, regardless of which cellular service provider it was issued by. Using the previous example of the Apple
iPhone, a locked iPhone will only work with an AT&T SIM card. However, if an iPhone is unlocked, it can be used with a SIM card from any cellular service provider (such as T-Mobile).
Advantages of Unlocked Cell Phones
The most popular reason that people want an unlocked cell phone is that it increases their options for choosing a new cell phone. Continuing with the example of the Apple iPhone, when this phone was released, it was obviously in very high demand. However, there were many consumers who wanted to purchase the Apple iPhone but because they were already tied into a contract with a cellular service provider other than AT&T, they did not want to pay an early termination fee for breaking their current contract or become locked into a new contract with AT&T.
For consumers who wanted an Apple iPhone but did not want to be forced to take either of the actions described above, their best option was to purchase an unlocked Apple iPhone. By doing this, they could take the SIM card out of their existing cell phone, put it into the Apple iPhone and keep their existing cellular service provider while still getting the new cell phone that they desired.
The other reason that people want an unlocked cell phone is to keep their existing cell phone when they switch to a new cellular service provider. Because you can have your existing cell phone unlocked, if you have to switch to a new cellular service provider for any reason (such as your employer choosing to switch the cellular service provider of all the employees in your company), you can replace your old SIM card with the SIM card issued by your new cellular service provider and maintain your existing cell phone instead of settling for a phone that you don't like as much.
Downsides to Unlocked Cell Phones
The first downside to unlocked cell phones is that they only work with cellular service providers which run on a
GSM (Global System for Mobile Communications) network. The reason is that cellular service providers which run on a
GSM network use SIM cards in their cell phones, while cellular services providers which run on a
CDMA network do not use SIM cards in their cell phones. Because SIM cards are necessary for a unlocked cell phone to function properly, it is simply not possible for cell phones issued byCDMA cellular service providers to be unlocked. In the US, AT&T and T-Mobile each run on GSM networks, while Sprint and Verizon run on CDMA networks.
The second (and arguably most significant) downside to unlocked cell phones is their price
tag. The reason that cellular service providers can sell new, popular cell phones at low prices is because they lock you into a two-year contract. By subsidizing the initial cost of a new cell phone, they can attract new customers and make a profit over the course of each customer's two-year contract. Therefore, while you may see a new phone advertised for $99, when it is purchased without a two-year contract, it may actually cost $300.
The final drawback to unlocked cell phones is that it may result in you being unable to take advntage of certain features offered by a cellular service provider. For example, many cellular service providers install exclusive software on the cell phones that they sell directly to their customers, and if you purchase an unlocked cell phone, you will not have access to this software on your cell phone.
Obtaining Unlocked Cell Phones
There are four methods for obtaining an unlocked cell phone. The first method is purchasing a new unlocked cell phone. The easiest way to purchase a new unlocked cell phone is on the Internet. There are many different unlocked cell phones that are available from well-known websites like Amazon and eBay (before purchasing an unlocked cell phone from an eBay seller, take the time to review and evaluate their transaction history). If you are having trouble finding the unlocked cell phone you want on these major websites, a quick Google search of "cell phone name unlocked" should yield a retailer that sells the unlocked cell phone you want (as with eBay sellers, be sure to review the reputation of any retailer that you are not familiar with). Phone manufacturers may also sell unlocked cell phones directly through their website.
The other three methods involve unlocking an existing cell phone. If you have completed the terms of your contract and you want to unlock your cell phone, your cellular service provider may be willing to help you unlock your cell phone. If this option is not available, you can find companies which will unlock your cell phone for a fee (ranging anywhere from $5 to $100). Finally, if you are technically savvy, you may be able to search and find a free guide online for unlocking your specific cell phone.
