Serviced No Contract Cell Phones
Despite the fact that mobile phones have become the most all-pervasive personal electronic devices of the civilized world - with roughly 4.6 billion subscribers worldwide - most people fail to realize that when they buy a cell phone, what they are generally doing is really purchasing access rights to a service provider’s cellular network. The phone itself 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 contractless cell phones are available for those focused more on the functionality of their hand-held.
Unlike contractless mobile 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 allows 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 capabilities unique to that plan and service provider.
The price of the phone itself is usually totally free, or at least considerably reduced, and the recurring monthly payments necessary by the contract are used to subsidize the cost 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 essential to the entire operation is that a customer be allowed access only to their network. This is achieved by “locking” the phone. The SIM card inside each phone is programmed so that it will only work with the expected network, keeping the user from using any other carrier’s network - a sort of enforced devotion.
No contract cell phones, in this situation, are synonymous with unlocked cell phones - phones that are not bound to any specific service provider. This is essential since many types of phones are exceptional to a particular network. The iPhone as an example 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 generally purchased from a third party vendor, they typically cost the full retail amount.
The advantage 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 - instead of subjecting themselves to the decision of choosing their favored phone or preferred service, which are often times mutually exceptional. In many situations, after the cost of a phone has been paid over several monthly contract payments, carriers will agree to unlock a phone for a certain price. No contract cell phones, on the other hand, are prepared for use with any service provider.