You can have cell phone contracts from different companies if your phone is not locked. Your cellular provider can lock your phone unit so that it cannot be used with another service or any Global System for Mobile Communications (GSM). Only unlocked phones can recognize other SIM cards (Subscriber Identification Module) made by other cellular phone service. You cannot make calls nor send text messages with a locked phone. The phone is practically dead or useless when inserted with another network?s sim card.
Another thing is that when you sign up for a service plan, a free cell phone goes with it. Or, you can buy a phone at a discount or at a lower price provided you sign up for a service plan of the network carrier. This can be a very enticing offer for someone who is looking to buy a new phone. Who would not want to buy at a discounted price, or better yet for free?
Now, take a closer look. The service plan is locked in to a number of months typically a 24-month period, which means you will be using and paying for the service of that network provider for that specific time period. There is nothing wrong with it if the arrangement works for you. The most important thing is you get the information straight. You are not only paying for the service of the network provider but you are also paying for the cost of the cell phone. It might have not been obvious to you at first, or they did not discuss it to you. Take note that a portion of the monthly payment you make for the service plan must pay for the phone, too. And since you are locked in for a number of years, you cannot switch providers as you please unless you are willing to pay a hefty early termination fees.
Being bound to a specific network offers no flexibility to someone who travels a lot. When you travel outside the country, you do not want to be charged with roaming and long distance use, so you get a local carrier. However, you can only do this if your cell phone is not locked to a particular cell phone provider. If you are vacationing and does not receive a nice reception, you cannot use another phone service if your phone is locked. You would have to buy a new one to enjoy the service of another network.
It is frustrating that you do not have much freedom with locked phones. You always have to go through the carrier if you have to make changes or even get another service temporarily. Because you are in contract with your cell phone carrier, you cannot make changes on your own. You have to honor the terms of the agreement.
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