What Unlocked Cell Phones Do For Us

Posted on 04 May 2011

Unlocked cellular phones are a relatively rare occurrence in the United States, especially since most commercially accessible phones are purchased via service providers and are hence already locked. What it means to lock a cell phone is basically binding that particular phone to a supplier – for instance AT&T or Verizon – enabling it to work only on their cellular network by programming the SIM card for being compatible only with the desired network.

The phone cannot use a network from another company, and is therefore locked to a company. Unlocked mobile devices are those phones whose bonds to a certain carrier have been cut and can utilize whatever network is available, at the discretion of its user. This makes things affirmatively easy when it comes down to traveling or possibly going back to the country for those who go back of course.

Most mobile phones are locked because they are purchased directly through a service provider’s retail outlet, usually in addition to whichever service plan or contract is chosen by the individual. The entire goal of locking a cell phone is almost strictly business – constraining the use of certain, well-liked models of cell phones to a certain carrier’s network, the practice of which varies wildly between service providers and hardware developers dependent on a variety of complicated and esoteric business agreements. One major factor in inhibiting unlocked cell phones though is geographic location. Most countries have their very own laws with regards to the legality and practice of locked and unlocked cell phones.

In Finland, as an example, it’s just illegal for service providers to market SIM-locked GSM phones. Only unlocked cell phones are legal to sell, with the closely monitored exception of 3G phones sold with tie-in contracts (as familiar to US residents) which was authorized by the Finish government for a time ending in 2009. In Hong Kong, it is again illegal to SIM lock a cell phone for the purpose of coercing users into using a particular mobile network, however SIM locks are permitted in cases where contract costs are used to subsidize the price of the particular handset (another practice common in the US). Both Israel and Singapore outright forbid SIM locked cell phones for a purpose, meaning that all handsets in those countries are unlocked cell phones.

The laws concerning unlocked cell phones and SIM locking in the United Kingdom are, like in the United States, somewhat more nefarious in that there are no laws. SIM locking is issued at the discretion of service providers, who generally, are hesitant to lose customers and are too willing to use SIM locking to almost literally bind their customers to their network services. Even though the expiration of tie-in plans where monthly contract costs are used to subsidize the price of the actual phone, companies are not required to unlock any of their customer’s phones. Even though they do agree to do so, it is often only after the expiration of the contract, and even then only at a charge.

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