Friday, January 24, 2014

Read This Post Before You Attempt to Purchase an Unlocked iPhone in the US

I moved home from Germany 5 days ago. I will be spending a few months in the States then I'm moving to Japan. I know the best option for me is an unlocked phone that I can move from one network to another as I travel around.  I thought this would be a simple enough problem to resolve. However, it seems that few mobile phone sales representatives in my area have any idea what to do in this situation. I started at the Apple store. They sent me to AT&T who sent me to T-Mobile, at T-mobile I was sent to Verizon, Verizon suggested I check with the Apple Store - I had gone full circle. I stopped at Target somewhere in there too, just to ensure that no one in my area had a solution for me. Frustrated, to say the least, I felt I should share the information I gathered with anyone who might possibly be looking to resolve a similar problem. The good news is that I have found a solution and so will you; Read on!

CDMA vs GSM

There are two major types of wireless voice technologies used globally: Code Division Multiple Access (CDMA) and Global System for Mobile communication (GSM). GSM is the standard in Europe. Japan is on CDMA. For other countries and regions of the world,  I have no idea but a quick Google search should provide an answer. In the United States we have a mix of both. Some US wireless networks such as Verizon and Sprint are on CDMA, while AT&T, T-Mobile and others are on GSM.  iPhones can be either CDMA or GSM compatible.  Apple does not produce a model that is both CDMA and GSM compatible (not in the US market at least). The CDMA iPhone and the GSM iPhone look the same and, for the average user, function exactly the same. The only noticeable difference between the two types of iPhones is their model number.  So you need to find out what type of technology you require and purchase the appropriate model. 

Wikipedia has a comprehensive list of US carriers detailing whether they are CDMA or GSM.

Click here for more information on iPhone Model Numbers. 

Purchasing an Unlocked iPhone

This is going to be expensive. You should expect to pay no less than $600 for the latest model. At the time of this writing I was quoted $712 for a 16GB iPhone 5s at Verizon or $699 for the same phone at the Apple Store. That being said, do your homework! The prices do vary based on promotional offers or excess stock or holiday weekend sales or whatever. On the day I checked at Verizon, they were selling the 5c and the 5s for the same price due to a promotion. However, both phones at Verizon were more expensive than they were at the Apple Store.

Not all wireless providers will sell an unlocked iPhone. Most will only sell the phone locked to their network. This means that unless you do some mid-level hacking (not recommended), you cannot take the phone off of their network. T-Mobile, Verizon and the Apple Store will sell the iPhone unlocked. Verizon requires that you are on their network for at least 7 days. This to me sounds like their way of locking you into a one month commitment to their service at a minimum.

WARNING: Beware of purchasing unlocked phones from 2nd party vendors. An iPhone that has been jail-broken and unlocked, AKA hacked, to allow it to leave it's original carrier's network may cause big problems down the line. They may have all sorts of glitches and quirks and you will unlikely be able to upgrade your software when a new version of iOS comes out. If you aren't particularly savvy with technology, you should avoid this route!

Contract Free Wireless Service

Once you have purchased your unlocked iPhone that operates on the voice technology you need (CDMA/GSM), you have one more problem to work out. Which US pay as you go service will you be selecting? There are several carriers that sell pay as you go SIM cards and credit refills at Target and other major retailers near you. If you have a GSM compatible, unlocked iPhone you can use the AT&T or T-Mobile options (beware of shockingly low data allowances!). CDMA folks, you'll be looking for other options.  Sprint has a program called "Sprint as you go" - this was not a great option for me as Sprint has spotty coverage in my area. Verizon does not have a pay as you go option that is worth your time. They have something listed online but it seems to be a daily rate. The representative in the store told me there was nothing compatible with the iPhone.  My father has a contract with Verizon and they offered to put me on his plan for $40/month with unlimited talk & text and 2GB of data. Since I have a phone that is unlocked, I have no commitment and can be dropped from the plan whenever I wish. Check with your friends and family to see if you can opt in to something like this temporarily.

Here you will find a list of CDMA carriers world wide.

And the GSM guys are here!

*Companies are known to switch technologies so these sites are subject to errors and changes.

More Good News

In many circumstances, buying an unlocked phone upfront will save you money in the long run. I did the math, if I had an individual plan with a 2 year contract I would pay about $90/month. For this I would receive the same service as I will receive with my unlocked phone piggy backing on my father's existing plan. I paid $599 for my phone and I will pay $40 per month for my service. If I was on this plan for 2 years I would spend $1559 in total. If I went the traditional route and paid $90/month for the service with the phone included for 2 years my total would be $2,160.  See what I did there? I just saved over $500! You can do it too! Plus you can have the freedom to leave the country, pick up a SIM card on the road and have mobile service throughout the world without being tied to a recurring monthly payment to a mobile provider back home.


"Fear commitment?" that's the marketing tagline they like to use to target people in our situation. How about "Are you a super cool, globe trotting, wanderlusting, nomad who deserves all the functionality of an iPhone even though you can't be counted on to stay in the same area code for long?" There are plenty of us out there and wireless providers are making this way too difficult to navigate. Until they get it together and help a "hopeless wanderer" out, I guess we have to rely on blog posts and internet research. Best of luck to you on your adventure into wireless contract liberation and global cellular mobility!

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