Some cell phones are designed to use a Subscriber Identification Module (SIM) card, or microchip that stores subscriber data. The SIM card is issued by a carrier and provides cell service by activating any phone into which it is inserted. A locked phone, however, will only recognize a SIM card from a particular carrier. If the cell phone is unlocked, it will recognize a SIM card from any carrier. The "lock" is a software setting that keeps the cell phone "loyal" to one carrier.
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