Why are cell phone companies allowed to lock cell phones?

Because you probably signed a contract telling them that they could.

Pete is probably right. I know some people that were able to switch providers and use their old phone, but it’s rare. Always read the fine-print.

I understand that it may have been a stipulation in the contract, but I still don’t understand how they can be allowed to put something like that in a contract in the first place and why more people haven’t raised a ruckus about it. I suppose what I would really like to find out is how they get away with it so I can figure out what it would take to change it. I don’t think I could do anything about it as an individual, but would still like to know what it would take….

Because (in the UK at least) the cost of the phone is subsidized by the contract. Back in the day the price of a phone was so much no one would we able to afford it. The government therefor allowed the phone companies to sell the phone at significantly less than it was worth and make up the cost in line rental.

For example when the Nokia N95 was realeased off contract it cost £600 but on contract you could get it for nothing. The phone companies want to lock the phone to their network to protect their investment.

@amanderveen: It’s legal because you’re under no obligation to agree to it. You agreed by signing. Deal. :D

Phone companies are in the business of making money. Contracts like this allow them to make more money. And like everyone else said, you have the option of going with their service or choosing a competitor.

I bet any company would love to have a way to make customers obligated to keep paying them money. And since dollars equal power, it’s no wonder that the companies have more say than you do in the matter of how this is “legal.” Perhaps if you can come up with a good chunk of lobbying dollars, you, too, can change government. :)

The same reason telecom companies wiretap and send phone and Internet records to the government, because we are a fascist country and corporations and government can do whatever they please.

@chris: Hyperbole much?

Please explain the hyperbole being used.

I don’t think the US is fascist just yet.

If you’re in USA its not illegal, big difference from being legal. And no amount of subsidies from the government give them the right to do it that’s just nonsense. Food is subsidized but they can’t force you to use a gas stove instead of electric or eat from a cup instead of a bowl. The phone belongs to you, period. Buying it at the sale price doesn’t negate buying it. Not to mention people like me who pay full price and are still locked. It’s rubbish and the way we fix it is buy getting enough people together to tell them we won’t stand for it. And if they don’t listen once we have a majority of the customer base then we simply stop paying them. It pisses me off as much as you.

also see en.m.wikipedia.org/wiki/Cell_Phone_Freedom_Act_(Bill_C-343)#section_1this is Canada not USA but I like it. Note it doesn’t apply if you have subsidized phone under contract