It doesn't work like that. I put my t-mobile sim card in. The phone screen displays contact service provider. After 2 minutes of not messing with it, it will real subsidy password
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I enter the code floppy gave me but it doesn't work..

 

you can't turn it on to where it reads Insert SIM?

 

No. Motorola phones are not the same as others such as nokias and such. When motorolas are in the "insert sim" mode, you cannot press anything on the keypads unless its 911, otherwise it will say, "emergency calls only"...unlike nokias where you can enter the unlock codes while there is no sim in the phone...