When the purchase price of the mobile phone to the consumer is subsidized with revenue from subscriptions, operators must recoup this investment before a subscriber terminates service. In order to secure their investments, GSM network providers implements a software feature called SIM Lock on the handset to prevent usage outside their network. Such subsidies are worth more than several hundred US dollars and in that's why carriers also charge an early termination fee; another form to recoup the subsidy investment.
When the purchase price of the mobile phone to the consumer is subsidized with revenue from subscriptions, operators must recoup this investment before a subscriber terminates service. In order to secure their investments, GSM network providers implements a software feature called SIM Lock on the handset to prevent usage outside their network. Such subsidies are worth more than several hundred US dollars and in that's why carriers also charge an early termination fee; another form to recoup the subsidy investment.
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