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What does it mean when your phone is locked?
When your phone is locked, it will only work with the original providers SIM card. For example, if you bought your phone from Cingular, it will only work with Cingular SIM cards.
What it means to unlock your phone?
Unlocking your phone means that you unlock it from the Service Provider/Carrier that it is locked to. For instance, when VODAFONE UK sells you a NOKIA, that NOKIA is locked to VODAFONE UK and can not be used with another provider such as CINGULAR in the USA. Unlocking lets this happen.
Why should you unlock your phone?
Use your NOKIA with any GSM network
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