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We’ll forgive you for thinking that phone contracts go something like this: buying the phone outright will give you the ability to switch networks with ease, while getting the device on contract means you’re locked to the provider.
While that is true to some extent, it definitely doesn’t tell the full story. A locked phone will prevent you using your minutes, texts and data with a new SIM, but once the contract is up, you’re probably free to do as you please.