Should I Buy An Unlocked iPhone? [Ask Lifehacker]

Adam Dachis ?Dear Lifehacker,
Apple started selling unlocked iPhones today, but they're really expensive. Is there any real benefit to buying an unlocked iPhone or am I better off getting one on a contract? What about unlocked phones in general?

Sincerely,
Unsure About Unlocking

Dear Unsure,

Unlocked phones are great because you can use them on any GSM carrier?which, in the US, includes AT&T and T-Mobile, and abroad, includes almost every carrier. That means you can use a local carrier when traveling abroad (instead of racking up international roaming charges), use it with T-Mobile or AT&T in the US (with limitations), and never pay an early termination fee (as you're essentially paying it up front, as part of the cost of the unlocked phone). If any of those things sound good to you, then buying an unlocked iPhone might be a good idea. If not, just get a subsidized phone on a contract.

That said, even if these reasons apply to you, buying an unlocked iPhone isn't necessarily cost-effective. Let's take a look at each benefit individually and see if it makes sense for your wallet.

Is It Worth Buying an Unlocked Phone If...

...I Want to Use a Local Carrier When Traveling Abroad?

The short answer: yes. If you're a frequent international flyer then this is definitely cost effective. International roaming rates are ridiculous, even if you have a worldwide plan with your carrier. These costs vary depending on where you're going, but let's take a look at a common example to get an idea.

We'll assume you're in the US and use AT&T as a carrier, since US customers are really the primary target for these unlocked iPhones. AT&T offers discounted international rates for $5.99 per month. This saves you money so long as you travel frequently. For example, Australia normally costs you $1.69 per minute but is discounted to $1.29 per minute with this plan. At 40 cent difference per minute, you'd need to talk for about 15 minutes to make that monthly fee worthwhile. The same goes for the UK ($1.39 compared to $0.99). In Canada it's a 20 cent difference ($0.79 compared to $0.59), meaning you'd have to talk for 30 minutes. You get the idea, but if you want to compare more rates you can find them all on AT&T's international comparison chart.

The UK is a common destination for international travelers so we'll use it in this example, and we'll also say you use 100 international roaming minutes there per month. With the AT&T plan that'll cost you $104.99 per month in addition to your local plan costs. 100 minutes on Orange's network (if you're not familiar, they're a large provider in the UK) will cost ?10 with a pay as you go plan, or about $16.38 in US dollars. That is a savings of $88.61 per month?also known as a lot.

But we also have to factor in the cost of the phone over the course of two years (because you'd be on a two-year contract if you didn't buy it unlocked). An unlocked iPhone 4 will cost you $500 more than it will to buy it on contract. Over two years that will cost you about $20.83 per month. That means you'll only be saving about $67.78 per month when traveling abroad. Wait, did I say only? That's $1,626.72 over the course of two years. You could buy an iPhone on contract and pay for its service with that money.

So that's the long answer. Pretty much any way you look at it, if you use even a small number of minutes on your iPhone internationally, buying unlocked is a very good idea.

...I Want to Use the iPhone on T-Mobile?

The short answer: no, unless you somehow need to save every penny and also need an iPhone. (I'm not convinced this situation can actually exist, but maybe I'm underestimating Apple fanboy/girl-ism.) The long answer isn't all that long, actually. As we previously determined, buying unlocked will cost you about $20.83 per month over the course of two years (the length of a contract). If you're doing this to use your iPhone with T-Mobile, that means your plan needs to be $20.83 cheaper than with AT&T. Is that the case? Yes, but it comes with a big sacrifice.

T-Mobile charges $79.99 per month for its unlimited plan (which caps data usage at 2GB), which is really $100.82 for you. To get an equivalent unlimited plan with AT&T it will cost you $114.99 per month. Going with T-Mobile, in this case, is cheaper. If you don't want unlimited, the next step down with T-Mobile is a 500 minute plan with unlimited texts and 2GB of data. That will cost you $59.99 per month, or $80.82 in your case. AT&T's closest option (which is the same except for the minute allotment, which is capped at 450) will cost you $84.99 per month. It's still more expensive, but you do have the option of saving $10 monthly by only purchasing 1,000 texts per month (as opposed to unlimited). Regardless, T-Mobile is going to be cheaper?but that's not the point.

The biggest downside to using T-Mobile, however, is that you do not get 3G service. The iPhone is not compatible with T-Mobile's 3G network, so you're stuck with crappy 2G data speeds. This means your fancy new iPhone is going to crawl like the original iPhone did on AT&T's EDGE network. It also means you can't talk and use data at the same time (unless you're on Wi-Fi). Are these sacrifices worth it? Personally, I don't think so, but I know people who do. The real advantage you get with using your iPhone on T-Mobile is not being tied to a contract, but that's the next topic.

...I Want to Use My iPhone Contract-Free?

The short answer: no?not under any circumstances. An unlocked iPhone costs $500 more than an iPhone on contract. How much does an early termination fee cost at most? $325. If you don't want to be tied to a contract, buy one on contract anyway and just terminate the contract whenever you feel like it. Congratulations, you're free.

This, of course, doesn't mean you have an unlocked iPhone. This just means you have an iPhone that isn't tied to AT&T, which is pretty much worthless unless you plan to sell it on Craigslist. That said, should you want to perform a carrier unlock yourself, you can do that for free. (If you don't know how, this amateur hand model will show you.) Basically, if you want a DIY unlocked iPhone you can get one and save $175. The downside is that you'll have to keep unlocking it every time you update iOS. So have fun with that.

One more thing: if you just want a contract-free iPhone, go buy it on Craigslist. You can almost always pick up one up in new to new-ish condition for less than Apple's asking. If you just want off contract, or want to make an even less-expensive DIY unlocked iPhone, don't buy retail. Buy from some weird stranger you met on the internet.

The Bottom Line

Is it worth it? Only if you think cellphone contracts are poisonous devil spawn, you travel abroad regularly, and/or are a huge T-Mobile devotee. Otherwise just get a contract and deal with it. It's great that Apple's offering an unlocked option for those who need it, but for most of us we can just stick with the usual.

Love,
Lifehacker

---

You can follow Adam Dachis, the author of this post, on Twitter and Facebook. ?Twitter's the best way to contact him, too.

Source: http://feeds.gawker.com/~r/lifehacker/full/~3/565cDN5OwoI/should-i-buy-an-unlocked-iphone

tennis arcade fire brother red faction what is my ip address nissan gtr john wayne