Carrier Why Do They Still Lock Phones

[Mac'nCheese]

Wouldn't it be easier and cheaper to just produce phones that work for all (country by country) phone companies? Its not like buying an ATT phone will guarantee the user will never switch to Sprint, you can always sell your current phone and get another used one for a different service or just get it unlocked anyway.

 

[-Gonzo-]

In the U.K. most networks don’t lock phones anymore.

 

[KrisLord]

In the U.K. most networks don’t lock phones anymore.

If you buy a phone on a 2 year deal and it was locked, there was an incentive to stay with that original provider as unlocking may cost a small amount, but enough to be annoying.

Now it tends to be locking to avoid immediate reuse on another network.

For example a phone bought close to full price could immediately be used on another network - that removes the incentive on the selling carrier to offer any discount. Either all networks offer the same price or they use short term locking to ensure they’re not being taken advantage of.

 

[eyoungren]

Wouldn't it be easier and cheaper to just produce phones that work for all (country by country) phone companies? Its not like buying an ATT phone will guarantee the user will never switch to Sprint, you can always sell your current phone and get another used one for a different service or just get it unlocked anyway.

Because the carriers still have a certain amount of power over Apple so that Apple cannot just unilaterally make decisions like that.

Second, it prevents promo deals from being abused. Ex. About a year ago Boost had a deal for the iPhone SE for $99. What would prevent someone from buying an unlocked phone at that price and then using it on their carrier and not Boost?

In fact, Boost had such problems with third party unlock services as it was, that the promo had to be ended early.

The problem with questions like this is that they are always asked from the consumer's point of view and not the carrier or manufacturer's point of view. And the consumer often never considers that anyone would or could take advantage of a promo offer when the fact is that most people will if given the opportunity.

 

[Mac'nCheese]

Because the carriers still have a certain amount of power over Apple so that Apple cannot just unilaterally make decisions like that.

Second, it prevents promo deals from being abused. Ex. About a year ago Boost had a deal for the iPhone SE for $99. What would prevent someone from buying an unlocked phone at that price and then using it on their carrier and not Boost?

In fact, Boost had such problems with third party unlock services as it was, that the promo had to be ended early.

The problem with questions like this is that they are always asked from the consumer's point of view and not the carrier or manufacturer's point of view. And the consumer often never considers that anyone would or could take advantage of a promo offer when the fact is that most people will if given the opportunity.

But can’t boost offer that price if and only if the customer signs a two year contract with their company?

 

[eyoungren]

But can’t boost offer that price if and only if the customer signs a two year contract with their company?

That's right. So, keeping the phone locked to Boost helps to make sure that the customers buying the phone at that price STAY on Boost.

Boost (and any other entity offering a promo) makes their money back by selling you service.

 

[Superrjamz54]

But can’t boost offer that price if and only if the customer signs a two year contract with their company?

Boost is a prepaid month to month phone company not a postpaid carrier.

 

[chrisforpm]

Canada has outlawed locking cell phones. So all carrier phones now have to be unlocked. Since 2 year contracts are still a thing, the only real benefit is if you are travelling you can buy a local SIM card. Otherwise there is no incentive to switch carriers while on contract because you have to pay off the balance anyway.