That's because they charge you for a early termination fee.

The termination fee normally equates to the difference of the retail cost of the phone minus the price you paid for it.

In the long run it's cheaper to buy an unlocked smart phone. At the end of most contracts in the US you'll have paid $500.00 to 1000.00 more than if you bought an unlocked phone and went with a provider like Virgin.

I bought a Samsung Galaxy Proclaim at Walmart for $179.00. Prepaid service, so the phone is unlockable from the get go.

I get great unlimited everything for 45 a month, and I have great service, so I have no need to jailbreak.

But it should be legal to do, since I bought it no contract.

What if you don't pay the early termination fee? All they can do is send you to collections and even then they can't get money out of you if you don't want to pay. And then they still don't care what happens to the phone. You could have it flashed to another carrier and go about your business.

If you contract for a subsidized phone, then break said contract and do not pay the termination fee, you do not own the phone. They may not expend the effort to get it back, but it's still their property.

Well that still will not stop people from taking that phone to another carrier and having it flashed over to their service. It happens frequently around here. I don't think this law will stop it. I will make jailbreaking a phone illegal, but it will not stop people from jailbreaking phones.

True, but not all carriers [Telstra, Optus, etc] actually say so.

Depending on the carrier and the plan you choose, that's usually the way it goes, but our current plan [$68 per month for 2 handsets] includes unlimited calls and texts to mobiles and landlines within Australia 24/7, so the packege is quite generous, and given our usage [Shaunna rings her daughter in Tasmania several times a week, mobile to mobile], the phones will likely have cost what we would have paid for an unlocked one.  At one outlet they were asking $699 for unlocked Nokia Lumia 820's, that was like $1400 for us both, so for mine, the contract we decided upon was reasonably cost effective, and we have two new smartphones with more than ample calling/texting.

Well, if you don't mind breaking the law, the discussion's moot - isn't it.

even in the US jailbreaking is not illegal. unlocking became illegal in the US yesterday. can't see how this will affect an indiviual person though. the companies that offer this service will just not writing bills and therefore not paying taxes.

not paying the termination fee is serious though. hard to believe such habits will not end up in a database and sooner or later you won't get credit anyware. might even end up in jail if a debt collector chooses to use the justice system.

for the Australians:

if those Aussie ski bums here aren't talking complete bullshit: your consumer rights require the carriers to unlock post-paid phones at any time you wish. some ask for a fee, some don't.

here in Austria unlocking any phone by any method is perfectly legal.

and in Israel selling locked phones is illegal

I don't know hat kona is saying that he'd break this law personally, just that there'll be an element who will, much like the moonshiners during the days of prohibition, and the millions of unlicensed drivers on roads all around the world. In some cases, a law is seen purely as an invitation to break it... on principle.

Many people think the law is an ass and therefore flout it.  I think the law is an ass in so many instances, but I don't tempt fate and break those laws I'm in disagreement with because it would be my luck to get caught each and every time, and prison garb just wouldn't suit me

So yeah, those laws are a deterrent to myself and like-minded others, but not everone thinks that way... its an adventure to see how many times they can get away with it.  Sadly, I have a son who thinks that way, despite being brought up differently.

Ski bums?  What?  We're going through a fricking heat wave, so the only skiing here right now is on water....

As for carriers unlocking phones out of contract, yeah, most charge for the service, anything up to 50 bucks, depending on the carrier. However, if we return to the store where the missus and I purchased the phones I'm sure they'd unlock them for gratis when the contract's up... they're good like that.

that might be the reason why they come here in winter (on the upper half).

???