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Other manufacturers have taken a more cautious approach, and embed a random number in the handset's firmware that is retained by the manufacturer and the network on whose behalf the lock was applied. Also, most providers will unlock the phone on demand. Older phones could not be used at all anymore at this point, but modern smartphones often keep on working with the original SIM but need extra work to then unlock them the right way. Nevertheless, the fundamental principle of GSM and its successors, is open interfaces which encourage competition among multiple vendors. SIM locks are employed on cheaper pay-as-you-go handsets, while discounts on more expensive handsets require a subscription that provides guaranteed income. Unlocked handsets have a higher market value, even more so if they are debranded. One law professor, Dale Clapperton, gave a talk stating that bundling iPhone and mobile phone service could be violating the Trade Practices Act. The main reason to unlock a handset is to be able to use it with a different SIM card. Under Finnish law, a tie-in sale is defined as selling the equipment for a discounted price contingent on the consumer also acquiring a new service contract from the seller. This regulation was ordered to enable mobile number portability and to facilitate the reduction on costs ordered simultaneously. Such a move does not result in violation of the ban on phone locking.

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Even though the existence of this law, local carriers continue to apply SIM restrictions to the phones they sell. Previously bought locked phones had to be unlocked for free. However, the mobile operator must inform the consumer of the existence of a SIM lock, and the subscriber has the right to request that the lock be removed at any time. Dual SIM phones are quite common in use, with users choosing to make calls using a cheaper operator suitable for the particular call and time of the day from a Dual SIM phone without even switching it off. Nevertheless, the fundamental principle of GSM and its successors, is open interfaces which encourage competition among multiple vendors. Article 20 of this law states the prohibitions that sellers are obliged to abide when selling a good or providing a service to people. Proposal to shorten the time that operators may charge a fee for removing the SIM lock prior from six-month to the three-month deadline. Some handsets can be unlocked using software that generates an unlock code from an IMEI number and country and operator details using the algorithm specific to the handset. But Hong Kong carriers can SIM-lock a phone to protect the handset subsidy, to enforce mobile plan contracts or to protect from theft. Honduras[ edit ] In Honduras , there is a general law applicable to all consumer relations engaged in the national territory and provided by natural or legal persons, public or private. One law professor, Dale Clapperton, gave a talk stating that bundling iPhone and mobile phone service could be violating the Trade Practices Act. Usually the unlock process is permanent. This service requires that individuals who wish to unlock a handset provide their IMEI number and sometimes also country and operator details to the company, either via email or a web site. There does not appear to be any regulation or law on SIM locking in Australia. Other handsets may display different messages such as "Enter special code" or "Enter unlocking code," or in some cases the handset will simply display a message stating that it is locked. In some cases, a SIM-locked handset is sold at a substantially lower price than an unlocked one, because the service provider expects income through its service. Sometimes this is done by advanced calculations to bypass the security the official way and other times using exploits or overwriting parts of the firmware where the lock status is kept, and often even recover a phone that is bricked or completely damaged in the software sense. Such companies may email the unlocking code or software which will remotely unlock the device. After entering more than a certain number of incorrect codes the phone becomes frozen. Also, making it too difficult to unlock a handset might make it less appealing to network service providers who have a legal obligation to provide unlock codes for certain handsets or in certain countries. This is a state where the phone will display a security message that the phone needs service. For example, the iPhone was initially offered for sale in Germany exclusively through T-Mobile, and it was locked to T-Mobile's network. The number of inter-state travelers demanded unlocked phones. Sometimes big telecom providers change the original factory unlock codes as an extra layer of security against unlocking services. Such a move does not result in violation of the ban on phone locking.

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