Subscriber Identity Module (SIM)

ne of the key features of GSM is the Subscriber Identity Module, commonly known as a SIM card. The SIM is a detachable smart card containing the user's subscription information and phone book. This allows the user to retain his or her information after switching handsets. Alternatively, the user can also change operators while retaining the handset simply by changing the SIM. Some operators will block this by allowing the phone to use only a single SIM, or only a SIM issued by them; this practice is known as SIM locking, and is illegal in some countries.

In Australia, North America and Europe many operators lock the mobiles they sell. This is done because the price of the mobile phone is typically subsidised with revenue from subscriptions, and operators want to try to avoid subsidising competitor's mobiles. A subscriber can usually contact the provider to remove the lock for a fee, utilize private services to remove the lock, or make use of ample software and websites available on the Internet to unlock the handset themselves. While most web sites offer the unlocking for a fee, some do it for free. The locking applies to the handset, identified by its International Mobile Equipment Identity (IMEI) number, not to the account (which is identified by the SIM card).

In some countries such as Bangladesh, Belgium, Costa Rica, Indonesia, Malaysia, Hong Kong and Pakistan, all phones are sold unlocked. However, in Belgium, it is unlawful for operators there to offer any form of subsidy on the phone's price. This was also the case in Finland until April 1, 2006, when selling subsidized combinations of handsets and accounts became legal, though operators have to unlock phones free of charge after a certain period (at most 24 months).