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These days, there's no real price difference between buying a phone locked to a specific carrier and buying that same device unlocked that can be used on any network, though the largest carriers. Is a prepaid phone unlocked. Best Answer: Unlocked phones are phones that can be used with any carrier, you can also use a prepaid card on it from any carrier. If it is an AT&T unlocked phone, you can use it for tmobile and it works the same way around. If it is a Verizon unlocked phone it will work with sprint same way around. 10 thoughts on “ Untangling the Jargon: Unlocked vs. No-Contract Cell Phones ”. Andy January 30, 2016. It’s not that surprising that a contract phone plan (with the subsidized phone) ends up being more expensive in the long run, but with how expensive phones are, I can’t really blame people for using them. 1) No difference in quality between prepaid phones and models that are sold as unlocked. The phone company may charge a little less for a locked prepaid phone (as they assume you will purchase top-up credit from that network) but they are the same phones. 2) If your phone is locked to a US network, you may have problems using an international SIM.