What You Need To Know About Phone Unlocking
Now that unlocking a new phone is under many circumstances illegal in the U.S. (!), Digital Trends has collected a useful set of answers outlining just what that means. As they put it, a "quick guide to answer all your why, how, and WTF questions." Among them, some explanation of the rule-making process, the reasoning that led to the end to the unlocking exception to the DMCA (including the Ninth Circuit's 2010 Vernor v. Autodesk decision), and illustrations of situations in which it is not illegal to unlock your phone.
I know it is in Australia (ACCC).... would have thought US had more protection.
EMail: 0110001101100010010000000110001101110010 0110000101111010011011100110000101110010 0010111001100011011011110110
Likely does not mean certain in all cases. The trend toward providing unlocked phones at full price, instead of subsidized ones, will on average save people money. You can of course find a case where it doesn't. In theory having a free market will eventually level such differences, such as how T-Mobile has started unlocking more and focusing on monthly rate to seem competitive. Monopoly situations where there is only one carrier available do not operate as a free market.
Its called pre-paid. http://en.wikipedia.org/wiki/List_of_United_States_mobile_virtual_network_operators this is a list of every pre-paid carrier in the US, and what carrier they mooch off of. So if your so called "only" carrier in the area is on this list as an MVNO carrier, then you can take your unlocked phone to that provider and pay WAY WAY less than any on-contract carrier.
Ah, my question is answered in the next part of the article:
Furthermore, new court decisions have changed the interpretation of the law. In 2010, the Ninth Circuit court decided in Vernor v. Autodesk, Inc that we cell phone owners do not actually “own” the software running our phones. Instead, we are only “licensing” this software – a key difference – which means that we don’t have a right to alter that software. This also played a role in the Librarian’s decision.
"Verizon sells all iPhone 5s unlocked, meaning you could take your device over to AT&T or T-Mobile without having to unlock the device."
You could take your Verizon CDMA iPhone over to AT&T or T-Mobile, but you won't ever get it to work on their networks.