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What is the meaning of an unlocked mobile phone?

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hollie1586 | 00:19 Wed 14th May 2008 | ChatterBank
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does it mean that if i got a new phone that is unlocked, i can put my old sim card in it and it would still have all my contacts etc

i really want one of those samsung soul's on pay as you go!
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but can i put the sim card in the new phone that came out of the old phone?
00:22 Wed 14th May 2008
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Yes, you can put any sim card in it.
00:24 Wed 14th May 2008
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