What is a subsidy password

The term "subsidy" refers to the subsidization of cell phones sold to customers that purchase mobile phones as part of a contract with the mobile service operator. Many network operators provide these subsidies as an incentive for users to sign extended contracts, and use the subsidy lock as a means of protecting their investment. The installation of such locks means that users often are forced to purchase a different phone if they decide to switch their network (of advantage to both the OEM manufacturer and cellular service provider).