Stupid question

I have a Cingular V220 phone. I want to switch to a V551 or Razor. Here is the crux of the situation. Cingular says you are under your contract and can not switch. I have heard that you can take out your sim card and put it into a new phone as long at it is ??unlocked??.

1) Is this true?
2) What is unlocked?
3) Do it matter if it is a cingular type phone, you know the type they sale?

Thank you,
bmandesign

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question #1. yes that's true
question#2. unlocked means: you can put any simcard there is in the world. let say you go to canada. to avoid the high cost of international roaming of your service provider just buy prepaid simcard fido, roger, or microcell and put that sim to your phone, your ready to go.
question #3. it's good if you can get a cingular unlocked phone. but if you get a phone use to lock to t-mo or at&t some function will be missing. let say t-mo phone is program to t-zone and if you want to go to internet with t-mo unlock cell phone with cingular service you can't. that's is a good phone moto v551 this phone is quad band that's work all over the world.

Thanks, I'm looking at the V550 off of Tigerdirect.com