What exactly is an Unlocked Cell Phone, and Should You Buy One?

If you're considering buying an unlocked cell phone, there are some things you should think about first. As with anything else, there are benefits, and potential disadvantages, though you can steer clear of them if you're smart about your purchase.

First, make sure you know what the terms "locked" and "unlocked" actually mean. A locked cell phone is one that will recognize a SIM card (a microchip that stores subscriber data); the "lock" is a software setting that keeps the SIM card from being recognized by only one carrier. For example, a locked iPhone will only work a with an AT&T network SIM card; an unlocked iPhone on the other hand, will work with a SIM card from other networks, such as T-Mobile. (On that same note, an unlocked iPhone could not be used on the Verizon Wireless or Sprint networks, because their phones use CDMA technology that isn't compatible with SIM cards. Phones that use CDMA technology cannot actually be unlocked, as it uses internal memory that's built right into the phone and can't be removed.)

The Advantages and Drawbacks of an Unlocked Cell Phone

Most people choose to buy unlocked cell phones because it expands the variety of phones they can choose from. Many cell phone makers create specific phones for specific networks; unlocking phones allows product crossovers between networks. Another motive is the convenience of being able to keep the same phone if and when they switch networks.

As for the downsides to buying unlocked cell phones, it's already been mentioned that CDMA technology doesn't allow the use of unlocked cell phones. Another drawback, and probably the biggest is the typically hefty price tag that comes along. Carriers can sell new, popular phones at low prices because they also require a two-year contract to take advantage of the discount. You might buy a phone for next to nothing (or actually nothing, in some cases), when in reality if you were to buy it without the contract it would cost at least a couple hundred dollars.

Another disadvantage is that you might not be able to use certain features or software that are installed directly into the phones networks provide exclusively. Using an unlocked cell phone from another network will limit your access to these features. Let's recap. If you decide to buy an unlocked cell phone, do the following first:

Check the compatibility to see if there will be any notable features or software you won't be able to use. Also look into the data coverage. Make sure that the phone is compatible with your network's data plan (assuming you use one). This is more likely to be an issue with imported 3G phones, which operate on a different frequency abroad.

Shop around for deals to ease the blow of an undoubtedly high price.

Buying an unlocked cell phone is a great way to use technology you'd otherwise be unable to -- just be smart about the process.


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