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Most mobile phones come with software that locks them to a particular provider's system -- ATT, for example. If the phone is unlocked by entering a code particular to that phone, it can then be used with a SIM card from any other carrier that uses the same kind of cellular system (Verizon or Sprint, in the case of ATT's phones).

Canceling a contract, on the other hand, simply pays the phone company for the phone that they gave you for free -- or at a discount -- when you signed up. It does not unlock the phone.

The best way to get a phone unlocked is to tell the company that you are going out of the country and want to be able to use a local system. If you have been a decent customer, they will usually send you a code within a week or so. (But not if you have canceled your account in the meantime, rest assured.)

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Q: What is the difference between canceling a mobile phone contract and unlocking your phone?
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