The ability to utilize an embedded SIM (eSIM) on a mobile device restricted to a specific carrier is often contingent upon the phone’s locked or unlocked status. A locked phone is generally configured to function exclusively with the network of the carrier from which it was purchased. For instance, a phone bought from and locked to Carrier X may not readily accept service from Carrier Y, regardless of whether the service is delivered via a physical SIM card or an eSIM.
The prevalence of locked phones stems from various business models, including subsidized phone pricing tied to service contracts. Carrier locking is implemented to protect the carrier’s investment by preventing customers from easily switching to a competitor before fulfilling their contractual obligations. Historically, this practice has been commonplace, though consumer demand and regulatory pressures have prompted some carriers to offer more flexible unlocking policies. The benefits of unlocking include increased freedom of choice for consumers, the ability to use local SIM cards (or eSIM profiles) when traveling internationally, and potentially higher resale value of the device.