In a word, freedom. Here's what type of freedom buys you.
First, it is important to remember that the iPhone 5 comes
in several different models that are optimized for the different wireless
network operators. The unlocked model works on GSM networks, not CDMA networks.
That means you won't be able to use the unlocked iPhone on either Sprint or
Verizon's networks. Instead, it will be limited to GSM networks. In the U.S.,
that means AT&T or T-Mobile USA. (You'll be able to get LTE service from
AT&T, but only
3G service from T-Mobile in a handful of markets.)
The biggest benefit of having an unlocked device is that
you'll be able to use the iPhone 5 on the networks of foreign carriers when you
travel abroad. The on-contract version of the iPhone will roam on those
networks, too, but you'll have to pay roaming fees to your U.S.-based carrier
(think Bill Shock). Unlocked devices can be used with local SIM cards at a much
lower cost.
The trade-off is that you lose *your* phone number, which is
replaced with a local phone number. This means your coworkers or family will
get dinged for long-distance charges if they call the foreign cell number
temporarily assigned to your unlocked iPhone 5.
The second biggest benefit is that you won't be beholden to
a pricey contract. Remember, the $199 iPhone may seem like the best deal, but
it chains you to a two-year contract with the wireless network operator of your
choice. Most post-paid carriers charge a minimum of $70 per month for voice,
messaging and data packages. Multiply that by 24 months and you're looking at
about $1,700 in carrier fees.
Living contract free means you can use a month-to-month
service that costs less. For example, T-Mobile USA offers a prepaid plan that
includes unlimited 3G/4G data, unlimited messaging and 100 voice minutes for
$30 per month. Some quick math tells us that T-Mobile's two-year prepaid plan
costs $720.
No contracts also afford you a greater degree of
flexibility, especially if big things change in your life (income, employment,
location, etc.).
There's one really important factor consider with the iPhone
5 in particular, however. Verizon Wireless's version of the iPhone 5 already
comes with an
unlocked SIM card tray (per FCC regulations). That means you can take
a Verizon-branded iPhone 5 from the U.S. across the pond to the U.K., buy a
local SIM card from a U.K. carrier and use the device at a lower cost on that
foreign network (it includes the necessary radios to talk to the GSM networks
in foreign countries).
So, if you want to live contract free, the iPhone 5 isn't a
bad choice.
source: http://www.informationweek.com/mobile/mobile-devices/unlocked-iphone-5-worth-the-cost/d/d-id/1107620?
by Eric Zeman
http://www.buyetail.com
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