New bill will make cellphone unlocking legal

WASHINGTON D.C. (WLS) -- President Obama is about to sign a bill into law that could help users break free of long-term contracts and make it easier to use your phone overseas.

A new bill from congress will make it legal to "unlock" your cellphone so that you can use it on another network without your current carrier's permission.

"If you have an unlocked phone it can be as simple as swapping your phone's SIM card to get service on another carrier," said Joanna Stern of the Wall Street Journal.

The change could even save consumers a lot of money when traveling internationally.

"This unlocking freedom is really beneficial to travelers," said Stern. "It means they can take their phone from the U.S. and get to another country and get local rates."

Unlocking your phone can be as simple as typing in a code. Some carriers already help their customers do this if they meet certain requirements.

"This puts a lot more control in the customer's hands. It doesn't mean they have to rely on their carrier to unlock their phone," Stern explained.

A cellphone user can unlock their phone at any time to switch networks, but if they have to cancel their current contract, they could face a steep termination fee.

President Obama says he looks forward to signing the bill into law, and when he does, it will be effective immediately.