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Originally Posted by TheBigNewt
Thanks, that makes sense. I wonder if TMobile will unlock a Pearl and then you hotfoot it over to Cingular and sign a contract with them? No, on second thought I guess it would be Cingular that would do the unlocking in that situation.
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Most carriers don't unlock phones because the profits are not in phone sales, it's in providing cell service. So they take steps to keep you around. Unlocking phones is not a way to keep customers. But if it's to keep you as a customer, they may unlock a phone you got elsewhere.
For example, many online deals give a free Pearl when one signs a two year contract with a carrier. The vendor who sold the phone makes a commission on selling a two year contract. The carrier makes money on two year's cell service.
The two year contract assures the carrier that it will make money on having given away a Pearl to the new customer.
The early cancellation fee assures that the carrier will get the price of the phone returned to them should one terminate the two year deal early.
The concept is similar to the printer toner and ink jet wars. HP and others have been attempting to stop the selling of refilled ink and toner cartridges. HP has tried everything from lawsuits, patent claims, refills will void warranty threats, putting chips in the cartridges that prevents refilling, etc.
The reason HP and others have been so aggressive is because they don't make money on the printers, they make it on ink and toner refills. Then comes along refill sellers taking away their profits.
Sounds just like cell phone sales and cell service, eh?