Are you confused and wondering why there are two different prices for the same Cell phones and same models, with only one difference: one is locked and the other unlocked?

Most cell phone service companies provide cell phones to users which are network locked. "Network Locked" means that, the phones can only be worked with their company's network. A locked phone from a company wouldn’t work with other service providers. So if anyone who wants to use their cell phone anywhere in the world with any service provider, would have to purchase unlocked cell phones which are not Network Locked by any particular service provider. Just transfer your existing SIM card into your new unlocked phone and your phone is all set to make and receive calls.

So why the different prices for the same model phone for locked version and unlocked sim free version. The reason behind this is quite simple and logical. A common practice by mobile service providers is to provide locked cell phones at a lower price than the unlocked model. The cell phone is being locked so it can only be used with that particular service provider’s network. It essentially means that you won't be able to use your cell phone with other SIM cards that belong to another mobile service operator. This way the service provider makes money not from the phone itself, but by binding you to their contract for a year or two.

Some people prefer to buy a locked phone because it is less costly. They can get it at very low prices or for free with a contract of two years. But purchasing a locked phone means you are committing yourself to use only one service provider network. This is not a bad thing considering the fact that you are paying a much lower price. So you may be wondering why people would want to pay for unlocked cell phones.

There are some good reasons why some people prefer to buy an unlocked phone.

Firstly, most people who decide they want to get a new updated phone but do not want to extend their contract would decide to buy an unlocked phone and use it for the duration of their contract. Secondly, many people who travel overseas and don't want to pay their carrier roaming and overseas prices, are better off buying an unlocked cell phone and getting a global prepaid sim card that can be used in the country they are visiting. With a locked mobile phone this would not be possible since they will have to make long distance calls via the carrier they are locked to; that can get very expensive.