Unlocked cell phones have several advantages over phones that are bought from carriers which are "locked" to the specific cellular network that the carrier uses. However, some people mistakenly believe that all unlocked phones are the same - that they all work on any network. This is not true, but can be avoided with a little education and information. The basic thing you need to know is that there are two different technologies used on cellular networks in the United States - CDMA and GSM.
These two technologies are mutually exclusive and phones are manufactured to work on one or the other. In other words, a phone designed for a CDMA network cannot be made to work on a GSM network. Of course, the opposite is also true.
However, you'll notice that there are only two different types of cellular network technology but there are multiple cellular service providers. This is because each provider uses one of the two technologies. So, a phone that was originally designed to work on AT&T's network can be unlocked to work on any other network so long as the network operates using the same technology. Since different cellular carriers offer different phone models, shopping for an unlocked phone can expand you choices for your next phone beyond those offered by your current provider.
The only thing you need to know when you're shopping for an unlocked phone is what technology your provider uses. You may be able to find a fantastic deal on a used Sprint phone, but if you have a contract with AT&T, then that phone won't be useful for you.
Below I've made a short list of the major cellular carriers and noted what kind of technology they use. A quick search online will point you in the direction of a more thorough list that addresses some of the smaller, regional carriers.
AT&T - GSM network
T-Mobile - GSM network
Cricket - CDMA network
U.S. Cellular - CDMA network
Sprint/Nextel - CDMA network
Verizon - CDMA network
What the above list shows you is that you can purchase an unlocked phone that was originally designed for Verizon's network and activate it on Sprint's network if you're a Sprint/Nextel customer.
This is really all you need to know if you're shopping for an unlocked cell phone. Remember to limit your search to only the phones that were originally designed to work on a network that uses the same technology that your network uses. Doing so will give you more options than you'll get at your local cell phone store and will probably help you save some money.
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