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They have to unlock your phone, by law, if you ask them. They are allowed to charge you but once unlocked it should be permanent.
Complain!!!!!
You can get hacks or buy codes from ebay etc. Can be cheaper but often the unlock code you buy doesn't work, and if you check their terms you will often find that they don't garrantee that it will and therefore no refund. But you can be lucky.
I have unlucked a few phones over the years. But you might be better off just spending the money for an unlocked one.
I recently had the argument with O2 in Germany. UMTS router, it took a few calls but eventually I got past the idiots with a script and had the unlock code emailed same day after credit card payment went through. Cost 50 euro but a lot cheaper than a contract with them or an unlocked router, they cost over 200.
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