Ive wondered about this for some time now.
By "unlocked," you're referring to GSM phones that aren't tied to a particular service provider and thus can be used anywhere in the world by inserting an appropriate SIM card. To the chagrin of wireless companies, which would prefer to keep you tethered to their pricey, subpar networks, such phones are perfectly legal to purchase — at least for the next 22 months. In October 2006, the Copyright Office of the Library of Congress ruled that circumventing a cell phone's locking software isn't a problem, as long as it's done "for the sole purpose of lawfully connecting to a wireless telephone communication network." In other words, as long as you intend to pay someone for service, you're cool. The only caveat is that the ruling expires on October 27, 2009, at which point it'll have to be renewed — something the likes of Verizon and T-Mobile will doubtless fight.
Sites like eBay, of course, will likely be on the other side of that debate. They make a mint off unlocked phones, which cost more than the subsidized mobiles sold by wireless carriers. "If someone wants to sell them, that's perfectly fine with us," says Catherine Schwartz, eBay's gadget and toy director.
You needn't pony up for a new phone, however, to enjoy the benefits of unlocking. If you've got an old locked GSM phone lying around, try asking your carrier for the unlocking code. It's AT&T policy, for example, to comply with unlock requests from customers whose contracts have expired.
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