Unlocked cell phones are handsets that aren’t tied to a particular carrier or contract. They have a larger market than locked phones, which makes them popular options for wholesalers and retailers. For instance, a device that is locked to Sprint must be used on Sprint’s network. A reseller purchasing this phone can only sell the device to Sprint customers. This has a major impact, especially for international resellers.
In this article, we’ll discuss if it is legal to unlock cell phones, the differences between locked and unlocked phones, how to unlock a used phone, and the value of unlocked cell phones to retailers and wholesalers. We encourage you to read this article, so you can learn the ins and outs of how to unlock cell phones.
How to Unlock Used Cell Phones
The fact that phones can be unlocked at will is good news for retailers and wholesalers. There are several reasons why this is the case.
The market for used cell phones is competitive. Wholesalers and retailers need any competitive advantage they can get, so they can maximize their sales. So, if you know how to unlock cell phones, you can offer a wide range of affordable devices. This can lead to better sales and greater revenue.
In addition, you can provide better customer service than your rivals if you know how to unlock a used phone. Typically, wholesalers and retailers buy used cell phones in bulk. They won’t generally be asked to unlock a customer’s phone. But, if a customer asks you to perform a third-party cell phone unlock, you can quickly and easily fulfill their request. You can even capitalize on the opportunity to promote a newer model to a customer after they ask you to unlock their current phone. The upsell opportunity won’t necessarily result in a sale at the time. However, if the customer decides to upgrade their phone down the line, they may be more likely than ever to come to you for a new device.
Ultimately, having the ability to unlock a cell phone won’t hurt a wholesaler or retailer. It’s yet another tool you can add to your arsenal to help you stand out from your rivals. Plus, having this ability showcases your used cell phone expertise. In the long run, it could help you become a trusted provider of used cell phones in your community.
Is Unlocking Phones for Profit Legal?
There was a time when unlocking a new smartphone was illegal, even for consumers who wanted to use international SIM cards. This changed in 2015 when the Unlocking Consumer Choice and Wireless Competition Act was enacted. The act states that cell phone carriers cannot deny a reasonable request to unlock a phone. It also ensures that anyone can unlock their phones or get someone to do it for them, even if a carrier refuses.
What Are the Differences Between Unlocked and Locked Cell Phones?
All mobile phones are either locked (tied to a certain carrier) or unlocked (which means they can be used with almost any SIM card).
The majority of new smartphones sold in the United States are locked. This is often because carriers bundle phones with monthly service plans that require no money down.
When a locked phone is purchased, that phone will only work on one cellular carrier’s network. However, the phone can be unlocked, so it can be used with another carrier.
Unlocked phones are more expensive in the short term since the full price must be paid upfront. On the other hand, they give people the flexibility to shop around for different cell plans.
An unlocked cell phone can be relocked if a factory reset is completed. At this point, the device will return to its factory settings; so, if the device was originally locked, it will be locked once again. In order to unlock the device, the user will need to complete the unlocking process a second time.
Retailers and wholesalers that sell unlocked phones need to consider network compatibility since unlocked handsets cannot be used on every carrier network. For instance, you can’t use an ATT GSM unlocked phone on the Verizon CDMA Network.
If you are buying a used cell phone and plan to ship it abroad, you need to ensure the phone will work in the area to which it is being delivered. Universal unlocked phones work on all major US carriers but may not work with overseas carriers. So, you need to pay attention to the bands and network and plan accordingly.
Which Are Better Options for Resellers and Wholesalers: Unlocked or Locked Phones?
If a device can only be used on a single network, it will be useless to retail customers unless they’re already using that carrier or are willing to switch. There is a large market for unlocked phones. These devices can be sold for a higher price than locked phones, since unlocked phones can be used with multiple carriers.
How Can You Tell If a Cell Phone Is Locked?
Here are ways to tell if a cell phone is locked:
- Check the phone’s settings.
- Change the SIM card; use SIM cards from different carriers to see if you can make a call on a different network.
- Get in touch with the carrier for additional support.
Unless a phone is specifically sold as “unlocked,” you should assume that the device is locked.
Is It Worth Your Time to Buy and Sell Unlocked Phones?
If you’re in the business of selling unlocked phones, it is usually a good idea to buy them from your supplier already unlocked. That’s because unlocking handsets takes time and does not work 100% of the time. If you’ve found a great deal on locked phones and you’re looking for instructions for how to unlock a locked phone, it’s imperative to first make sure that the phones are not stolen or blacklisted with the Cellular Telecommunications Industry Association’s online Stolen Phone Checker. All you need to do is enter the phone’s unique serial number (the IMEI/MEID/ESN on the back of the device or in the Settings menu) in the checker. If a phone has been flagged as lost or stolen, it will be on the GSMA blacklist. Attempting to unlock or sell a flagged handset can land you in hot water.
Should You Use a Third-Party Unlocker?
If you have a lot of handsets to unlock, you might be tempted to use an unlocking service. You can easily search and find companies offering these services; most of them operate the same way. They get large batches of unlock codes and sell them to retailers and wholesalers, usually for less than a dollar per code.
A third-party unlocker may seem like a fast, affordable option to add unlocked devices to your inventory, but third-party unlockers can be unreliable.
For instance, carriers sometimes audit lists of recently unlocked devices. When they discover a phone was unlocked by a third-party service without verification that the device’s owner met the carrier’s unlocking criteria, they might flag it. The flagged device will relock after the next software update. If that happens to any of the unlocked phones you’ve sold, your customers probably won’t be happy.
Review Third-Party Unlockers
Read reviews of third-party unlockers before paying for codes. Reviews can give you a glimpse into which third-party unlockers work best. If you’re on the fence about third-party unlocking, be cautious. It may be best to stick exclusively to buying unlocked cell phones or learn how to unlock devices on your own.
Third-party unlocking services, wholesalers, and retailers can legally unlock large numbers of devices. In 2013, updates to the Digital Millennium Copyright Act (DMCA) made all cell phone unlocking illegal. But, after widespread consumer outcry, the Unlocking Consumer Choice and Wireless Competition Act was drafted. The original version of the Unlocking Consumer Choice and Wireless Competition Act denied legal protections to “bulk unlockers” (a group that potentially included used phone wholesalers and retailers), but the version that was signed into law contained no restrictions regarding bulk unlocking.
One thing to keep in mind: DMCA exemptions are subject to review and change by the Library of Congress every three years. Thus, if you sell or plan to offer unlocked cell phones, you need to stay on top of any changes to legislation relating to these devices.
Is There a Fee to Unlock a Cell Phone on Your Own?
Carriers must notify customers if their cell phones are eligible to be unlocked or automatically unlock devices remotely when eligible for unlocking, according to the Federal Communications Commission (FCC). When carriers unlock their customers’ devices, they cannot charge an additional fee to do so.
Also, carriers reserve the right to charge non-customers and non-former-customers a “reasonable fee” for unlocking requests, the FCC notes.
How Do I Unlock a Cell Phone for Free?
Carriers can’t charge you to unlock a phone, but you will have to follow the specific procedures outlined by each carrier to unlock devices. How to unlock a cell phone will vary depending on which network the device is tied to. Here are the instructions for how to unlock a phone for each of the major carriers along with links to more information:
AT&T
AT&T — For most devices, there is an unlock request form you can fill out online using the IMEI number for the device. After you submit the form, AT&T will send you a confirmation email with a link. Click the link, and AT&T will send unlocking instructions within two business days. Note that prepaid devices must be active for six months before they can be unlocked. Start the unlocking procedure here.
Sprint
Sprint — Devices with domestic SIM cards launched after 2015 automatically unlock when they become eligible. To get an inactive device unlocked, call Sprint customer care at 888-211-4727 or request an unlock through Sprint’s online chat. See the full unlocking requirements here. Keep in mind that Sprint-branded phones use a relatively obscure networking technology and won’t work on other networks.
Verizon
Verizon — Call 888-294-6804 to request an unlock. A representative will walk you through the procedure, which typically involves entering a code (000000 or 123456) for most devices. For Verizon World Devices and prepaid 3G phones, you’ll need to call 800-922-0204 to get help from a Verizon tech. See the full unlocking policy here.
T-Mobile
T-Mobile — Use the T-Mobile Unlock app on supported devices or unlock the handset over chat or via phone by calling 877-746-0909. See the unlock requirements and procedures here.
Virgin Mobile
Virgin Mobile — Virgin Mobile provides a two-step process to unlock its devices. Click here to view full instructions on how to unlock a Virgin Mobile phone.
Most retailers and wholesalers deal in unlocked phones whether they’re buying or selling because it’s easier. Now that you know how to unlock a phone, however, you may be able to profit by purchasing locked phones at a discounted price.
How Do You Unlock an iPhone?
For those who want to learn how to unlock an iPhone 11, you need to reach out to your carrier. Apple cannot unlock an iPhone, regardless of carrier. It requires iPhone users to request a device unlock directly from their carrier. Then, the carrier can complete the process to unlock your device.
It usually takes at least a few days to unlock an iPhone. If you want insights on how to unlock an iPhone 8 Plus, how to unlock an iPhone 8, or how to unlock any other iPhone model, get in touch with your carrier. They can provide full details on how to unlock your iPhone, so you can use it with the carrier—or carriers—of your choice.
There are other steps required to finish unlocking an iPhone that currently has a SIM card from another carrier. In this instance, you’ll need to remove the SIM card from your iPhone. You’ll need to insert a new SIM card, which will activate the device.
Furthermore, there may be times where you get a message that the SIM card inserted in the iPhone does not appear to be supported. If you are running iOS 14, go to your iPhone’s settings. In the General section, click About. Next, look for a message that says “No SIM restrictions.” If this message does not appear, contact your carrier. For those who are running iOS 13 or earlier, contact your carrier to verify your iPhone is unlocked. If the issue persists, restore your iPhone to its factory settings or a backup and restart the unlock process.
How Do You Unlock an Android Phone?
If you want to unlock an Android, contact your network carrier. Request an unlock, and your carrier can verify that it has been completed properly. If you don’t have your phone’s original SIM card, you may need to reset your phone before it can be unlocked.
From here, power down your phone. You’ll next need to insert a new SIM card into the device and turn it back on.
To verify the unlock was successful, try making a phone call from your Android phone. If you’re able to make a call over a new network, the unlock has a success. If not, get in touch with your carrier for additional assistance.
Offer Unlocked iPhone and Android Phones
Most retailers and wholesalers deal in unlocked phones whether they’re buying or selling because it’s easier. Now that you know how to unlock a phone, however, you may be able to profit by purchasing locked phones at a discounted price.
logicalwireless makes it simple to provide unlocked iPhone and Android devices. All of our phones are accurately graded, so you can supply top-notch unlocked cell phones. We also update your inventory regularly, ensuring you can provide your customers with the latest iPhone and Android models.
Set up a free account to explore our iPhone and Android inventory. You can then buy unlocked cell phones from us any time you choose.
