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The iPhone 5 is one of the few GSM-based devices that can come unlocked right out of the box, which is why many people are opting to purchase these handy factory unlocked iPhone 5 devices. Carrier companies tend to lock iPhones because they do not want consumers to switch service plans. Locked iPhones can be unlocked using a software code. However, these days anyone can unlock their iPhone by having it fully paid and resolved of contract, and you can find tons of great deals on these phones from reliable sellers on eBay. With an unlocked iPhone 5, you can simply pop out a SIM card and put in another one from a different GSM operator, so the same phone can operate on multiple carriers. This does not work for LTE networks, as carriers tend to use different frequencies.