Category "Contracts and Shopping Tips"

What are unlocked cell phones, why would you want one?

Are you curious about unlocked cell phones? This article will hopefully shed some light on this gray market if you plan on buying one. First of all, why do unlocked cell phones exist?

Cell phone carriers will usually offer you a great deal on cell phones when you sign a 1 year or more service contract with them. They will lower the price of the handset by hundreds of dollars, and they even go as far as giving you the cell phone for free.

They are actually losing a lot of money when they make you such an offer, and they want to make sure you’re a profitable client. In order to prevent you from breaking your contract with them, they force you to remain with them by locking the new phone you just bought.

This means you are not be able to use your cell phone with another carrier. Even when your contract has expired, your cell phone will remain locked and often you won’t have much choice but to buy a new phone if you want to switch to another carrier.

When talking about unlocked cell phones, we are mostly talking about GSM phones, which use SIM cards to store all your contacts and client information. CDMA phones can be unlocked too, but this article will focus on GSM phones.

What are unlocked cell phones

An unlocked cell phone basically allows you to move from carrier to carrier without having to change your handset. With a GSM cell phone, you could theorically have two SIM cards from two different carriers and switch carriers simply by changing SIM cards. This, however, will only work with an unlocked cell phone.

Why you would want to unlock you cell phone

1. Changing carriers on the go. Say you travel abroad often - you could want to sign up with two carriers in order to reduce costs, saving yourself any roaming charges, without having to carry two phones. You could simply switch SIM cards when you’re in another country.

Unlocked cell phones2. Selling your cell phone. Say you plan on changing your phone and want to sell your old one. You are limiting your choice of buyers immensely if they can’t choose the carrier they want. Cell phones, when bought elsewhere than from a cell phone carrier, are often sold unlocked.

3. The practice of locking cell phones is bad for the consumer. By doing so, cell phone carriers force your to remain loyal to them and can charge you more for less. They are effectively trying to avoid competition with the other carriers.

A good compromise cell phone carriers could put into place would be to keep the cell phone locked for the duration of the contract and offer to unlock it when the contract ends. This would however prevent the user who has to travel abroad from switching SIM cards for the duration of the contract, so this is not an ideal solution. Unlocking your cell phone allows you to choose what’s best for you.

4. Exclusive handsets. Often, some handsets are exclusive to a specific carrier, like the iPhone. At the moment, you can only use an iPhone with AT&T. By unlocking a cell phone, you can use it with any carrier.

There has been some controversy recently on unlocked iPhones, as most unlocked iPhones have been rendered useless by the latest software update, but the idea remains the same.

Dangers of unlocking a cell phone

1. Carrier specific features might not work. Some carriers have specific services built into the handset, such as music downloading and web browsing. These features might not work if you try using them with an unlocked cell phone you did not buy from these carriers.

2. Unlocked cell phone could become non functional. The iPhone is a good example of this. Apple has released a software update which has made all unlocked iPhones unusable. This however happens only under rare circumstances.

3. Possible compatibility issues with foreign phones. There could potentially be some compatibility issues if you buy a phone from a foreign country, say somewhere in Asia, unlock it, and try to use it in your home country. Some features might not work properly because of differences in the cellular networks.

4. Some extra configuration might be required. In order to use some of the features like multimedia messaging and web browsing, you might have to configure your unlocked cell phone when switching to a new carrier.

How to unlock a cell phone

So, you’re considering unlocking your cell phone? There are many resources around the net which can help you achieve this. You can either:

Buy an unlocked cell phone. By buying a cell phone that is already unlocked, you’re saving yourself the hassle of reprogramming your phone. This is not a big deal - if you plan on buying a new phone and then unlock it, you should buy it unlocked in the first place. If you are interesting in buying an unlocked cell phone, you might want to check the following popular models from Amazon (aff):

Motorola RAZR V3 Black Phone (Unlocked)
LG KG800 Chocolate Black phone (Unlocked)
Nokia 6800 Cell Phone (Unlocked)
Sony Ericsson Z710i Twilight Black Phone (Unlocked)

Obtain an unlock code. You will usually find services around the net which will allow you to obtain an unlock code for your handset model. Some independent cell phone stores will also offer you to unlock your cell phone for a fee. You should keep the unlock code carefully in case your phone “relocks” itself - some carriers have been known to do this even when you did not buy the phone from them in the first place.

By locking cell phones, carriers are offering you a service at a higher cost and tend to develop less features since it makes the competition stagnate. By buying an unlocked cell phone, you are also making a statement against this practice. What do you think about unlocked cell phones? Are they worth it? Share your comments with us below.

How to get out of your cell phone contract for free

It’s hard to resist signing a 3-year contract when you buy a new cell phone. Cell phone carriers give you such a fat discount on the phone when you buy it with a contract, yet getting out of a contract can cost you hundreds in early termination fees.

Chip Chick gives a tip on how to get out of your cell phone contract and avoid fees. It involves transferring your contract’s responsibility to someone else. Finding someone willing to take on your contract can be hard though, but these two services can help you find people who’ve been waiting for this occasion: Celltrade and CellSwapper.

Now you can worry less about your cell phone contract while still enjoying a huge discount on your new phone.

Monitor your cell phone usage with MinuteWatcher

If you need help monitoring your cell phone usage, or if you are tired of building up huge cell phone bills, this might be the service for you.

MinuteWatcher is a service that tracks your usage and sends you periodic warnings and forecasts. These give you a chance to adjust your mobile phone usage before you receive a nasty surprise on your phone bill the next month.

This service is FREE and is available to all the major US carriers.

Source: Cell phone minutes monitoring service

Plan your cell phone purchase carefully

After reading “Plan carefully to avoid cell phone troubles” (edit: sadly the article is no longer available online), I wanted to emphasize the fact that sell phone vendors will do everything they can to sell you extras and a contract.

When I bought my Razr V3c from Bell Mobility, the salesman tried to put me on a 3 years contract without even asking me. He just said “sign here for your contract”. My what? I don’t want to get involved in a contract. I don’t mind paying the phone 100-200$ more if I can save the hassle of a contract.

The salesman from still sold me a set of accessory, which I thought were free, and an extended warranty. Having dropped my phone on the ground thrice so far, I don’t mind the extended warranty - at this rate I will probably put it to good use next year. As for the accessories, I still needed them, but please be careful of what they will try to get you into when you buy your first cell phone, because you might end up regretting it!

Dropping your land/residential phone line to favor your cell phone, is it a good idea?

Why pay for both your phone line at home and your cellular phone? Why not keep just your cell phone? This is something I’m considering doing, and there is a good article on that subject over there: Should I ditch my land-based home phone?. Here are the pros and the cons of dropping your land-based phone line. Most are taken from the article, but I added a few on my own:

Pros:

  1. Save money. This one is pretty obvious. Most cell plans have free long-distance plans, caller id and voicemail. Why pay for an extra phone line with additional fees for those options when you already have your cell phone.
  2. Only one phone number. One number where you can always be reached. You don’t have to pay additional fees for redirection services.

Cons:

  1. Must keep the phone charged. If you don’t you might miss important calls.
  2. Less security. In the case of an emergency, 911 services cannot located you as easily.
  3. Reception and quality issues. The voice quality in general on a cell phone is not very good when compared to land-based lines.
  4. Need multiple cell phones if you don’t live alone. What about your wife and your kids? They’ll need cell phones too.

As for me, I live alone, I barely use my land phone line and most of my calls are long-distance calls. I will make the jump soon :)