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For a better understanding of unlocked cell phones we ought to explain what locked phones are. The locked concept applies to those mobiles that can be used with one service provider only, whereas by unlocked we’ll refer to those that can be used with any provider. How is locking possible in the first place? The key element that allows codification or locking is the the service feature of recognizing the SIM (subscriber identification module) card. According to this principle we can only transfer cell phone cards between cellulars that belong to the same service provider.

Unlocked cell phones will recognize any SIM card no matter the mobile service company. The main advantage of these mobile devices is that one benefits from the chance to change the mobile without having a contract to fear. Just imagine the number of phone users who are willing to buy a cellular without being bound to a contract: this is the real chance with unlocked cell phones. You can purchase whatever unlocked cell phones you want without being confined to a contract. The only thing here is that when you get it independently and unlocked, you pay the real phone value, while when you get it in a contract-based package you pay considerably less.

Another explanation for the popularity of unlocked cell phones is the possibility to switch the cellular service provider without changing the device. The phone stays the same and you only need to change the SIM card to access a certain service provider network. There are nevertheless some disadvantages in the use of unlocked mobiles. One example here is the impossibility to match any cell with the CDMA network. You can use unlocked cell phones within the GSM network, but they will never function for the CDMA.

For the American cellular service providers, you’ll be able to use unlocked cell phones with T-mobile and AT&T, that run on the GSM, but Sprint and Verizon limit the phone usage to locked devices available within the system. And last but not least, the main downside to the unlocked variant is the price tag; you can purchase new mobile phones for a low cost when you sign a one or two-year contract. Thus, a locked cell you see advertised with $99, will cost you over $300 in the unlocked mode.