US Reseller Flex Policy (SIM OUT)

[JAB]

What is the US Reseller Flex Policy (SIM OUT)?

The US Reseller Flex Policy, also known as SIM OUT, allows retail
stores to keep in their inventory devices that have not been slated
for use on a specific US cell carrier. These devices have been
programmed so that whichever US cell carrier's SIM card is the first
to be inserted into the device when the device is first powered on,
the device will lock itself to that carrier. After that point, any
other carrier's SIM card will not be able to activate on the device.

An example would be if the first SIM card to be put in the brand new
device is from Verizon; the device will function exactly as if the
device was bought directly from Verizon. Putting in any other
carrier's SIM card, including carriers outside of the US, will not
activate on the device as the it is now considered a Verizon activated
device.

With this policy, the first SIM card put into the device MUST be from
a US cell carrier. If the first SIM card is not one from a US cell
carrier, the SIM card will not be activated on that device.

If a seller wishes to list a device sold to them using the US Reseller
Flex Policy here on Swappa, it cannot be listed as unlocked. The
seller must choose a US cell carrier in which to list the device to be
reviewed here on Swappa.

<https://swappa.com/faq/answer/us-reseller-flex-policy#:~:text=General-,What%20is%20the%20US%20Reseller%20Flex%20Policy%20(SIM%20OUT)%3F,a%20specific%20US%20cell%20carrier.&text=After%20that%20point%2C%20any%20other,to%20activate%20on%20the%20device.>

<https://www.reddit.com/r/iphone/comments/8ubjxz/us_reseller_flex_policy_unlock/>

[JAB]

US Reseller Flex Policy
Order the Permanent Factory Unlock of your US Reseller Flex Policy

<https://www.unlockriver.com/index.php?_route_=apple&product_id=9389>


09-20-2016,
Best Buy Selling iPhones Subject to US Reseller Flex Policy Now
<https://www.howardforums.com/showthread.php/1887769-Best-Buy-Selling-iPhones-Subject-to-US-Reseller-Flex-Policy-Now>

[Michael Trew]

Why would they do that? That totally defeats the purpose of unlocked
phones.

[JAB]

On Sun, 07 Mar 2021 22:04:16 -0500, Michael Trew <mt99...@ymail.com>
wrote:

>Why would they do that? That totally defeats
>the purpose of unlocked phones.

I'd have to research...this stinks, and might suggest some type of
back door arrangement with cell carriers.

At say Best Buy, I'd have to read their fine print regarding
"unlocked" smartphones.

I've heard of people complaining about this issue, and blaming the
wrong company...

Apparently, there is a way to unlock them, for around $80.00. Question
is, how did this software get loaded into these phones.

I know iPhones are involved, but don't know about androids. Kickbacks
is another possibility, but who is/are involved is the question.

[Theo]

JAB <he...@is.invalid> wrote:
> On Sun, 07 Mar 2021 22:04:16 -0500, Michael Trew <mt99...@ymail.com>
> wrote:
>
> >Why would they do that? That totally defeats
> >the purpose of unlocked phones.
>
> I'd have to research...this stinks, and might suggest some type of
> back door arrangement with cell carriers.

This is long how it has worked.

Instead of the retailer having to stock different phones locked to every
network out there, they stock one phone which locks to the first SIM it
seems. The end result to the user is no different.

Now, we can argue about whether locked phones are a good idea or not (and
many regulators have decided that they aren't and banned them), but back in
2012 a lot of people were on 2 year contracts that came with a 'free' phone,
and that free phone was carrier-locked until the end of the contract.
Locking to the first SIM meant that you didn't need a separate SKU for every
network.

The world is different now, and there's good motivation not to buy a locked
phone, which you can still do. All this is is making clear a practice
that has existed for about a decade.

Theo

[JAB]

On 08 Mar 2021 13:10:45 +0000 (GMT), Theo

<theom...@chiark.greenend.org.uk> wrote:

>Instead of the retailer having to stock different phones locked to every
>network out there, they stock one phone which locks to the first SIM it
>seems.

History via Wiki - The Unlocking Consumer Choice and Wireless
Competition Act....The bill passed...signed into law on August 1,
2014...In the United States and other areas, where carriers often
offer deeply discounted cell phones in exchange for an exclusive
agreement with a carrier, that phone will often be locked so it will
not work with another carrier
<https://en.wikipedia.org/wiki/Unlocking_Consumer_Choice_and_Wireless_Competition_Act>


So in US, no more locking with passage of that bill...but this "US
Reseller Flex Policy" was just another backdoor for locking
them....again. 2014 >>> 2016...Industry knew what it was doing...and,
for online consumers without awareness, a "Trojan Horse" I don't know
if brick-mortar stores will unlock these locked cellphones.

Quick Internet scan indicates a Tier 2 support person at Apple can
unlock a locked Apple phone. As cited, for some $80.00 these locked
phones can be unlocked online..which begs the question as to who is
feasting on this $80.00. I don't know if Apple charges or not.

Up in Canada, apparently with only two cell providers (quick scan),
they had the same problem, and their government broke up this locking.

I have an iPhone 11 that was bought directly from Apple, which has
been carrier switched twice without an issue, which suggests those
smartphones going to retailers had additional software imbedded.

[Michael Trew]

On 3/8/2021 9:52 AM, JAB wrote:

> Quick Internet scan indicates a Tier 2 support person at Apple can
> unlock a locked Apple phone. As cited, for some $80.00 these locked
> phones can be unlocked online..which begs the question as to who is
> feasting on this $80.00. I don't know if Apple charges or not.
>

I used to work for Apple Care, but my third party vendor site closed
before I could make it into Tier 2, so I can't confirm the unlock
ability. I vaguely remember hearing it, I know with manager permission
they had "customer satisfaction" codes that could grant similar things
to customers. Depending on the rep, if you're out of warranty/support,
they would sometimes request a payment, but made an exemption and still
helped you 9/10 times. I am almost entirely sure they would NOT charge
for this phone unlock if they do it, as that's not related to a tech
support call for an out of warranty or no apple care call.

[JAB]

On Mon, 08 Mar 2021 16:13:54 -0500, Michael Trew <mt99...@ymail.com>
wrote:

>unlock ability

I've never used a brick-mortal store in recent years...I would like to
think if a person jumps ship, these stores could do it in-house.

This flex policy, for unaware consumers, could have been a curve ball
to defeat legislative will.

Years ago, the DBS satellite and cellphone companies brought out these
free equipment offers for a 2 year or so contract. I can understand
why a lock was on...but this prevents/reduces competition.

I'd have to explore this topic further via brick-mortar
stores...online, I hear people complain who do business online.