The reason is actually quite simple. This is a common practice by mobile service provider to provide locked cell phones at a lower price than the unlocked model as the phone is being locked to being able to use only with that particular service provider network. It essentially meant that you won't be able to use the locked phone using other SIM card that belongs to another mobile service operator.

So, when you buy a locked cell phone, you are committing yourself to use only one service provider network. Not a bad thing considering the fact that you are paying a much lower price. And, before you start wondering why would people then want to pay for unlocked cell phones, let me detailed the reasons here.

The first reason is because some people travel overseas frequently and when they take into consideration the mobile cost involved, they decided that they will be better off buying an unlocked cell phone. It is quite simple: when they are in another country, the unlocked cell phone can be used with the local prepaid SIM cards they bought. If they are carrying a locked cell phone, they will probably have no choices, but, to make overseas calls which are very expensive and think of the bill that comes with it, it can be astonishing high.

Secondly, never assume that your mobile service provider will unlock your cell phone for you free when your contract with them ended. Some think that after fulfilling the contract period, their phone will be unlocked automatically but, the fact is, it is not necessary so. In some countries, mobile service providers are not obliged to unlock the phone for consumer even when the contract period ended. In order to continue using the phone, consumer will need to stick to the same mobile service provider.

Lastly, some people don’t want to go through the trouble and hassle of searching for ways and tricks on how to unlock their cell phones and that’s why, they will go for unlocked cell phones instead. Of course, there is documentation on some websites guiding people on ways to unlock cell phone, but, they are mostly for older models and it probably won’t work for your latest cell phone. Now, even if it works, you try on your own risk and in the event your phone is damaged, your mobile service provider might not provide any warranty on it.

So, consider all the facts, going for unlocked cell phone might not be a bad idea at all.