Yesterday, we heard that owners of Verizon’s iPhone 5 were reporting that the handset was GSM unlocked, which means it can be used on other mobile networks while still on contract with Verizon.
Now, Verizon has confirmed that the iPhone 5 is indeed unlocked on their network and it won’t be locked in the future. This means the handset will work with AT&T’s non-LTE 4G network, T-Mobile’s network, as well as other GSM networks.
Verizon Wireless said Monday that it won’t prevent its version of the iPhone 5 from being used on AT&T’s network.
The Verizon version of the iPhone 5, which went on sale Friday, came with an unexpected feature: it works on the network of AT&T and many other phone companies, as well as on Verizon’s.
It’s the first time Verizon, the country’s largest cellphone company, has sold a phone that works on competing U.S. networks with no complicated hacking, or “unlocking,” procedures.
Why the iPhone 5 is Unlocked
Apparently, the reason behind the device coming unlocked out of the box is due to an agreement with the FCC that Verizon has to not lock devices on its LTE network. This agreement was part of the conditions set by the FCC when Verizon acquired certain spectrum licenses. The intention behind this regulation is to promote competition and consumer choice in the mobile market. By ensuring that devices remain unlocked, consumers have the flexibility to switch carriers without the need for complicated unlocking procedures or additional costs.
This move by Verizon is particularly significant because it sets a precedent for other carriers. Historically, many carriers have locked their devices to their networks to retain customers and prevent them from switching to competitors. However, with the iPhone 5 being unlocked, it opens up a new level of freedom for consumers, allowing them to choose the best network that suits their needs without being tied down.
Implications for Consumers and the Market
The implications of this unlocked iPhone 5 are far-reaching. For consumers, it means greater flexibility and potentially lower costs. If a user finds a better deal with another carrier, they can easily switch without having to purchase a new phone or go through the hassle of unlocking their current device. This can lead to significant savings over time, especially for those who travel frequently and need to use different networks.
For the market, this move could drive other carriers to follow suit. If consumers begin to demand unlocked devices, carriers may have to reconsider their policies to stay competitive. This could lead to a more open and competitive market, ultimately benefiting consumers with better service options and pricing.
Moreover, the unlocked iPhone 5 can also be a boon for international travelers. Instead of incurring hefty roaming charges, users can simply insert a local SIM card from the country they are visiting and enjoy local rates. This feature is particularly useful for business travelers who need to stay connected without breaking the bank.
In conclusion, Verizon’s decision to offer the iPhone 5 unlocked is a game-changer in the mobile industry. It not only provides consumers with more freedom and flexibility but also sets a new standard for other carriers to follow. As the mobile market continues to evolve, such moves are likely to become more common, leading to a more consumer-friendly environment.
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