Business Practices In Plain English

I'm still a bit confused on what I think about this issue so I read a little further:

"The reason many network providers SIM lock their phones is that they offer phones at a discount to customers in exchange for a contract to pay for the use of the network for a specified time period, usually between one and three years. This business model allows the company to recoup the cost of the phone over the life of the contract. Such discounts are worth up to several hundred US dollars. If the phones were not locked, users might sign a contract with one company, get the discounted phone, then stop paying the monthly bill (thus breaking the contract) and start using the phone on another network or even sell the phone for a profit. SIM locking curbs this, by prohibiting change of network (using a new SIM). SIM locking is very common if subsidised phones are sold with prepaid contracts.

Despite the fact that many carriers do not provide unlocking codes, and that many who do force the consumer to pay a fee, unlocking a SIM is completely legal. Additionally, it is often legal for carriers to force SIM locks for certain amounts of time, varying by region."

Yeah, making this a criminal act is just stupid.

First, unlocking the phone does not void the contract... it just makes it possible to move to a different carrier once the contract is expired.

Second, it might be a civil matter, because unlocking phone might be against your contract, but it's hardly criminal.