Despite the fact that mobile phones have become the most common personal electronic devices of the civilized world - with roughly 4.6 billion subscribers internationally - most people fail to realize that when they obtain a cell phone, what they are typically 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 slightly disconcerting for most consumers who are worried 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 allows the customer access to their cellular network (without which they have no way of making calls - the whole purpose of buying a cell phone) as well as the various attributes unique to that plan and service provider. The fee for the phone itself is usually free, or at least considerably lowered, and the recurring monthly payments needed 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 crucial 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 expected network, keeping the user from using any other carrier's network - a sort of enforced commitment. No contract cell phones, in this circumstance, are synonymous with unlocked cell phones - phones that are not bound to any particular service provider. This is essential since many types of phones are exclusive to a particular network. The iPhone for 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 typically purchased from a third party vendor, they generally cost the full retail amount. The reward 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 selects - rather than subjecting themselves to the decision of choosing their favored phone or preferred service, which are often times mutually exceptional. In many instances, after the cost of a phone has been paid over several monthly contract payments, carriers will agree to unlock a phone for a specific fee. No contract cell phones, on the other hand, are ready for use with any vendor.
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