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Despite the fact that mobile phones have become the most common personal electronic devices of the civilized world – with roughly 4.6 billion subscribers worldwide – most people fail to realize that when they purchase a cell phone, what they are generally doing is really purchasing access rights to a service provider’s cellular network. The phone on its own is simply a conduit through which to access this, and is really only a small part of the transaction. This can be mildly disconcerting for most consumers who are troubled more with the device itself, but no contract cell phones are accessible for those focused more on the functionality of their hand-held.

Unlike no contract cell phones, the majority of cell phone purchases are made from service providers like Verizon or AT&T, often at retail outlets under those names. When a customer purchases a new cell phone from one of these carriers, what they are really paying for is a contract or service plan. This plan enables the customer access to their cellular network (without which they have no way of making calls – the whole objective of buying a cell phone) along with the various options special to that plan and service provider.

The fee for the phone itself is usually totally free, or at least considerably decreased, and the recurring monthly payments necessary by the contract are used to subsidize the fee of the phone. For service providers, the phone itself is unimportant – merely a way through which a customer can access their network, the real bread winner of their business. And what is important to the entire operation is that a customer be authorized access only to their network. This is achieved by “locking” the phone. The SIM card inside each phone is programmed so that it is only going to work with the intended network, keeping the user from using any other carrier’s network – a sort of enforced commitment.

No contract cell phones, in this case, are synonymous with unlocked cell phones – phones that are not bound to any unique service provider. This is crucial since many types of phones are unique to a particular network. The iPhone for instance is locked to AT&Ts; network, and AT&T adamantly refuses to unlock any iPhones whatsoever for use with other networks. However, since no contract cell phones are typically purchased from a third party vendor, they typically cost the full retail amount.

The benefit though is that because it is not already bound to a particular service provider, any type of cell phone can then be subscribed to whichever service provider the customer prefers – as opposed to subjecting themselves to the decision of choosing their favored phone or preferred service, which are often times mutually exceptional. In many circumstances, after the cost of a phone has been paid over several monthly contract payments, carriers will agree to unlock a phone for a particular fee. No contract cell phones, on the other hand, are geared up for use with any vendor.

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