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CNET's Quick guide to unlocked phones
 

By Kent German (October 10, 2007)

While they were relatively unknown just a couple of years ago, unlocked cell phones have become a hot commodity in North America. But even as they grow in popularity, many cell phone users don't have a clear idea of what unlocked phones are and exactly what they can do. Fortunately, CNET is here to help you make sense of it all.

A few basics
 

So what is an unlocked phone? Frankly, the best way to answer that question is to first tell you about locked phones. A locked phone is a handset that can be used only on one carrier. Any phone you buy directly from a U.S. carrier will come "locked" to that provider. So for example, if you have a T-Mobile locked phone, you'll be able to use that handset only with T-Mobile service and not AT&T.

Locked phones have long dominated the cell phone market in North America, and if carriers have their way, they'll be around for a long time. As carriers see it, locked phones may not give you a lot of freedom, but in exchange you're able to buy a phone with steep discounts and service rebates. That's why you're able to pay $49 for a brand-new camera phone that's actually worth $299. You may be locked to one carrier, but you saved a lot of money in the process.

 

Conversely, unlocked phones lack any settings that tie them to a specific carrier. So if you have an unlocked phone, you can use it with either T-Mobile or AT&T. Not only do unlocked phones give you more freedom to choose a carrier, but you also don't necessarily have to give up a much-loved handset if you decide to switch wireless providers.

What's more, the variety of unlocked phones is much wider than the choice of locked handsets. You can get models with unique designs or high-end features such as powerful cameras or music players. You're no longer restricted to buying only those models that your carrier decides to sell. Sound convenient? Well, yes, it is. But before you get too excited, it is important to remember that not all unlocked phones are created equal.

Because the United States uses two cell phone technologies, even an unlocked phone does come with some restrictions. Depending on whether your phone uses GSM or CDMA, you'll find that you'll have lots of choices or almost none at all.

GSM
The first cell phone technology, called GSM, is used by T-Mobile and AT&T. GSM unlocked phones give you the most freedom because they use a small, plastic chip called a SIM card, which typically is located behind the phone's battery. SIM cards are issued by your carrier and contain your identity as a subscriber. When you insert your SIM card into a phone, that handset is activated and assumes your number.

While locked phones will accommodate SIM cards only from a certain carrier, unlocked phones will work with SIMs from any provider. So, if you're a T-Mobile customer and you pop your SIM into an unlocked handset, you'll be able to make calls as normal. But if you put that same SIM into a locked AT&T phone, you'll be able to dial only emergency services.

 

An unlocked GSM phone is also advantageous to frequent globetrotters. In most countries throughout the world, you can buy a prepaid SIM card from a local carrier and use it in an unlocked handset. That phone will then have a local number for that country, which can save you a lot on international roaming charges. For more information on using a phone abroad, check out our Quick guide to world phones.

CDMA
The second major technology, which is incompatible with GSM, is called CDMA. Verizon Wireless, Sprint Nextel, and a number of regional carriers such as Alltel and U.S. Cellular use CDMA. Though CDMA phones also can be unlocked, it's not as easy to transfer them to another carrier because they don't use SIM cards. Without the SIM card, you must get the new carrier to activate the phone for you and assign it to your number. Not only does that involve extra steps on your part, but also it's unlikely that carrier will oblige you. Most of the time, CDMA carriers in the United States will not activate a phone that they didn't sell you, even if it's technically compatible with their network.

 

CDMA customers also don't get same benefits when traveling abroad. CDMA is used in far fewer countries than GSM, so even if you have an unlocked CDMA phone, chances are greater you won't be able to get service abroad, much less have it activated.

So to sum it all up, unlocked phones can be quite beneficial if you use GSM, but not so much if you use CDMA. If buying an unlocked phone is important to you, it's best that you chose a GSM carrier. That's why we'll be focusing on GSM for the remainder of this feature.

If you think an unlocked cell phone sounds like a great idea you'll be pleased to know that new unlocked handsets aren't difficult to find. Just remember that since carriers sell only locked handsets, you won't be able to pop into your local AT&T store for unlocked models. Instead, you'll have to shop in independent cellular store, or you can look online. But keep in mind that because you're not getting any carrier rebates, you will pay full price for most unlocked models. Higher-end phones such as the Nokia N95 can run you as much as $700.

 

The Nokia N95 is a great phone, but it won't come cheap.


In stores
Though you won't find an unlocked phone in a carrier store, they are widely available in retail locations run by a third party. It may be difficult to determine whether a store is affiliated with a carrier, so it's easiest to just ask if they sell unlocked models. Also, an unlocked phone can make a nice souvenir from a trip to Europe and Asia. Since unlocked models are more common in those regions, it's easy to find a wide selection.

Online
Unlocked phones are widely available form online retailers. Just pick out the model you like, then click the Purchase button. You also can buy unlocked phones on eBay or other auction sites. But be careful with what you buy online, particularly from anonymous sellers.

What about a SIM card?
If you have an unlocked phone and need service you sign up with a GSM carrier as normal. Just tell them you'll be using your own phone and that you only need a SIM card. Carriers love new customers so you shouldn't have a problem. But if a customer service rep tells you (incorrectly) that using an unlocked phone is not allowed, then try another carrier store. Or better yet, sign up on the service provider's Web site.

Can I unlock a phone purchased from my carrier?
The good news is that you can unlock a GSM handset--all you need is an unlock code. The bad news is that it's a bit more complicated than just flipping a switch. Also, it's important to note that not all functions will work right away. See the next page for details. Here are the most common methods.

Get it from your carrier
Believe it or not, carriers will unlock phones for you. It all just depends on who and how you ask. As far as we can see, no carrier has a set policy; it all just depends on the circumstances. You may get a nice customer service rep who is willing to give you the code or you may talk to a more strict one who's not so cooperative. One good piece of advice is that if you're off your contract, they'll be much more likely to do you the favor. And if you're successful at getting the code, you may have to pay a fee.

Try online
Unlock codes are available form online sources, sometimes for a fee. CNET's Download.com has a selection of options.

Other sources
Independent gadget shops can also unlock a phone, but we can't make any recommendations. Again, we can only say caveat emptor.
 

Once you buy an unlocked phone, you'll need to adjust the handset's settings in order to fully utilize it. Here are the things you need to know:
 

  • Though you'll be able to make calls right away--after inserting your SIM card, of course--messaging, data, and Web browsing functions may be inoperable. In order to use those features, you'll have program the phone with your carrier's data and multimedia settings. You can get these from your carrier or sometimes from the manufacturer, as well. Nokia and Sony Ericsson offer tools on their Web sites that will send the settings to your phone in the form of a text message. The settings will vary by carrier and model.

  • If you're using the phone in North America, it's essential that it support either the GSM 850 or 1900 band (though accessibility to both is best). Don't bother purchasing a phone that uses only the 900 or 1800 bands, as those frequencies are used only outside the United States and Canada. You can find a phone's bands by looking at its list of technical specifications.

  • If you're hoping to use UMTS 3G services your phone must support the 1900 band for use in North America.

  • Unlocking a phone with your carrier's permission may void any warranties. Or worse, you may have problems with the phone itself. Just this month, many Apple iPhone owners who unlocked their phones suddenly found them unusable when Apple issued a service update.

  • When using an unlocked phone, the standby screen and menu interface may appear differently than on one of the carrier's locked phones. This is pretty much just an issue of aesthetics and not operability.

  • Some higher-end features in unlocked phones, such as push-to-talk and GPS services, may not be compatible with your carrier's network. Check with your carrier to make sure.

  • Unlocked phones may not be able to support any games, wallpaper, or applications that you downloaded from your carrier's wireless Internet service.

  • Your carrier won't guarantee that it will support an unlocked phone if you're experiencing connection problems. Also, it won't repair or replace a broken unlocked phone. If you have any problems, you'll have to seek help from the manufacturer, the seller, or another source.
     

 

 


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