What is the Difference Between Unlocked and Locked Cell Phones?

Most cell phones have a Subscriber Identity Module card installed. This is also called a SIM card. A SIM card is a tiny computer chip that enables communication with a wireless provider. A SIM card is the component of a cell phone that enables it to function.

Function

A service provider programs a locked cell phone with an identification number that is necessary for service. This allows the service provider to route calls to a cell phone and keep track of minutes.

Features

The SIM card in a cell phone can be changed to a different phone when necessary, and this allows continued access to contacts and settings with the same service provider.

Benefits

A locked cell phone will only recognize a SIM card from the service provider that has programmed it. An unlocked cell phone will recognize a SIM card from any service provider.

Warning

Locked cell phones from the U.S. don't work well in many other countries. Travelers are forced to pay high fees to use their locked cell phones in other countries. Unlocked cell phones are compatible with any SIM card and service provider and so work in foreign countries.

Prevention/Solution

Some cellular providers will unlock a locked cell phone for you. After supplying the necessary information and paying a nominal fee, they will provide a password that can be entered into the cell phone to unlock it. However, unlocked phones can only be used with providers whose networks use the Global System for Mobile Communications Network.

Effects

Unlocking a locked cell phone is an option to consider if a new cell phone is needed but a service contract has not yet expired.