ELI5: unlocked phones, data plans, carrier selection, etc

[TakingBackSunday]

'Ello gents

So, I'm due for a new iPhone in September of this year.  I plan on buying the 7, whenever it comes out.  Like I said, my contract with Verizon is up in September and I'm eyeing Apple's iPhone Upgrade program that they offer:

http://www.apple.com/shop/iphone/iphone-upgrade-program

They pimp the phone being unlocked – now, I have heard lots about unlocked phones but I never really understood what the advantage was, nor how it worked.

So, come September, here's what I want to do:

1) Drop Verizon once my contract is over
2) Buy the new iPhone 7 from Apple
3) Use the iPhone Upgrade program with the potential of getting a new one in a year

With all that said...since I'm buying an unlocked phone and my contract is up with Verizon at that time as well, wtf carrier do I use?  Do I still need to buy a carrier plan?  If so what is even the point of the unlocked phone?

I'm 27 and I feel like an idiot.

[Mupepe]

I'm not sure about the iPhone specs, but assuming you have the right radios in the phone and sim/GSM for the network you can use whoever you want. You will have to pay for a sim card usually if you don't buy the phone from the carrier but that's only like 20 bucks or something.

You won't do a plan, it is usually prepaid service and month to month.

The only carrier I avoid is t mobile because they are awful in my area.

[VomKriege]

Locked means the phone is tied to the carrier you bought the phone to. I don't know how it is in the US but in France you are entitled to the carrier giving you the codes to unlock it after a year or two. Unlocked means you can use it with any carrier you wish to go with from the get go (and often having the native OS, without any carrier imposed layer on the IU), which in turn means you can contract for either a multiyear plan, a month to month formula or whatever you wish. Don't know how it is over in the US (apart from the fact that coverage issues have a lot more amplitude for you), but if it is anything like France, you'll make maximum savings by surfing from a carrier to the next every year or so to get the incentives for new clients : "faithful clients" are the one being milked dry not the ones reaping the rewards... at least our side of the pond.

Unlocked phones will be more expensive than locked ones (since the carrier is not subsidizing part of it) but the rebates are a bit middling IMO. Provided you're not looking for the latest flagship phones, you'll easily find perfectly fine smartphones for the same prices. At least for Android, I haven't kept up with Apple price structure but I guess they're still bathing in those sweet premiums for the brand.

[TakingBackSunday]

So once my contract is up with Verizon...I can simply keep using my sim?  No charge?

[VomKriege]

Nah the SIM is carrier tied, think of it as a visa ID delivered by the carrier to access their network. An unlocked phone device will accept any SIM that whoever you sign with, whatever the formula, will have to supply you (for a one time fee of 10 to 20€ or $) as explained by mupepe. Don't worry it's all standard.

You shouldn't have to change however if you stay with the same provider even if you choose a different subscription formula that this provider offer.

[TakingBackSunday]

Oh okay.  So once my contract is up, I do indeed have to buy a new plan from a carrier.

I guess I don't see why I would buy an unlocked phone if that's still what I have to do

[Kara]

My carrier is a bit shit outside the Southland. If I'm outside the area for a protracted period of time (and my phone was unlocked), I can buy a prepaid SIM card for a regional carrier and slap it in my phone so my clients could pester me incessantly just like I was in the Southland without any technical difficulties.

[VomKriege]

Depends what you call a plan. You could take a plan that doesn't bind you for any preset period of time, that you renew month to month or on a prebought credits basis. Unlocked phones are perfect to surf from minimum commitment deal to another or if you travel a lot.

[TakingBackSunday]

ah, ok.  that makes more sense

[brawndolicious]

Generally it's cheaper to get a prepaid plan and bring your own phone than to pay the higher monthly bill in exchange for a subsidized phone (ie: ~$300 for newest iPhone). I think when I calculated it it was like a few hundred dollars difference over two years.

You can still get things like family plans and whatever data tier you want with prepaid plans and they are probably the future of data plans as smartphones are really starting to plateu. Personally I still like to upgrade every couple years but I just like having a phone that is not tied to a particular carrier in any way.

Financially, buying your own phone and separate plan is like bringing your own modem and not paying a modem lease fee to your ISP. It's saving you money in the long run. Someone hasn't phone shopped before!!

[TakingBackSunday]

I haven't!  I'm still on my mom's plan

[CatsCatsCats]

Wait, did you think an unlocked phone meant you didn't have to pay for service?

[TakingBackSunday]

Not exactly, I thought you still needed to buy a SIM

[Kara]

I haven't!  I'm still on my mom's plan

One of my clients has a kid in their mid-30s who is married who is still on their plan. It's 2016 broseph.

spoiler (click to show/hide)

Dat illegitimate business deduction.

[close]

[Tasty]

I have heard lots about unlocked phones but I never really understood what the advantage was, nor how it worked.

🤔

[TakingBackSunday]

Shuddup