Why and how are phones locked to a certain provider?

523 views

Whenever you’re buying a phone online you have to be super careful to make sure you get one that is for your provider, or can be unlocked.

Some phones are sold factory unlocked and can be used with any provider.

Why is “locked to a provider” a thing? Is it just a marketing tactic, or is there a physical reason why certain phones can only work with certain providers?

In: Technology

2 Answers

Anonymous 0 Comments

To my understanding, the firmware (software embedded into hardware) can be configured to only allow a SIM card from a specific carrier to be allowed unless that carrier provides a code to release this restriction. An older practice was to not use a sim card and essentially embed that information into the system.

Carrier looking is typically used if a phone is being sold subsidized as part of a fixed service agreement. for example, the phone may be given for low or no upfront cost if you sign an agreement saying you will pay for 2 years of service. Carrier locking prevents you from cancelling the contract early and using the phone somewhere else without permission from the carrier (usually including paying early termination fees or whatever balance of a financing agreement is left)

Also I believe there have been a few cases where there was a partnership between carrier and manufacturer to have a new phone model offered exclusively on that carrier for some length of time.

Anonymous 0 Comments

The main reason is dollars and cents. A phone is locked to a carrier when purchased at a discount or financed through the carrier. Otherwise you could get a “free” or low cost new phone, use it a couple months and switch carriers. The carrier subsidizes the cost over the term of your contract.

A factory unlocked phone will cost more because you are paying full price for it yourself at the point of purchase.