How am I in breach of contract by unlocking the phone, when I still have to continue paying for 2 years? What does it matter if I use another service if I still have to pay for theirs until the contract is up? It has nothing to do with that. Take Iphones for instance. For the first few years you couldn't use them on ANY other carrier for any reason, even if you bought it full price. That's not a contract. You bought it and can use it as you wish. If I rewire my toaster to play DVDs, I should be able to do that.
Or another situation that I've personally been screwed by: John signs up for AT&T with a 2 year contract and gets a phone. After a year, he decides to get a new phone, or whatever. He sells the phone, but has to continue paying the 2 year contract, OR pay the buyout fee. I buy the phone from him, but I can now not legally use it on any other carrier, even though AT&T has recouped every penny and MORE from John for the price of the phone. It's a paid off phone. It used to be the SIM lock would wear off after 2 years, now most phones stay locked to a carrier permanently.
It has NOTHING to do with a contract, at all.
Oh, and to top it off, this is ONE Man who made this law, who wasn't elected by citizens. He's a god damn librarian, not a congressman. 5 years and $500,000 fine for a FIRST time offense, all for using something you legally own. Yeah, I'm sure AT&T, then 10th largest lobby in washington, had nothing to do with this.