Read on for 5 things you need to know about getting your AT&T iPhone unlocked, starting with…

1. What’s the difference between a “locked” and “unlocked” phone, anyway?

 
When you buy an iPhone (or just about any phone, for that matter) from a wireless carrier like AT&T, the carrier will typically “lock” the phone to its network—meaning you won’t be able to simply pop in a SIM card from a competing network (like, say, T-Mobile) and start chatting away.

That said, your carrier may also unlock your phone once your contract is partially or completely expired, so long as your account is in good standing (i.e., you’ve been paying your bills on time). Once unlocked, you can use your iPhone on any compatible GSM network, provided you’ve got a working SIM card for the network in question (more on that in a moment).

You can also buy an unlocked iPhone directly from Apple, but they’re outrageously expensive—as in $549 and up, versus $99 for an 8GB iPhone 4 with a two-year contract.

2. AT&T won’t unlock your iPhone unless you’re completely out of contract

 
In the case of AT&T and the iPhone, AT&T will only unlock your handset if a) you’re either completely out of your two-year contract or b) you’ve agreed to pay an early termination fee (about $350 or so, depending on how much time is left on your service agreement).

I just checked myself and found out I need to wait a few more months before my AT&T contract expires, so no unlocking for me (or at least, not yet).

To check if your iPhone is eligible for unlocking, just dial 611, press “0” for a customer service representative, and ask.

3. Getting your iPhone unlocked isn’t an instantaneous process

 
It could take a day or more between the time you call and ask AT&T to unlock your phone and when you actually get a confirmation email (a copy of which you can see here, courtesy of AppleInsider)—think 24 to 48 hours, according to the AT&T representative I spoke to.

Once AT&T approves your iPhone for unlocking and Apple pulls the switch on its end, you’ll need to connect your iPhone to your PC or Mac and then sync it with iTunes.

If all goes well, a message should pop up on your iPhone that says your handset has been successfully unlocked. Problems? Check out Apple’s troubleshooting tips.

4. You’ll need a new SIM card to use your unlocked iPhone on another carrier

 
So, want to use your unlocked AT&T iPhone on T-Mobile, or another GSM-based carrier? No problem; all you need is a working SIM card from your chosen carrier. Just pop out the iPhone’s SIM tray with a paper clip, replace the little plastic SIM card, and you’re in business.

Standard SIM card and the iPhone 4S's smaller micro-SIM, compared

OK, so how do you get a new SIM card, then? Easy; just call the carrier you want to use your iPhone with and ask, order one online, or buy one over the counter.

Remember that you’ll need a voice and/or data plan associated with your new SIM—and yes, you can opt for a pre-paid, no-contract plan if you wish.

Keep in mind that the iPhone 4 and 4S both use a smaller “micro-SIM” rather than the standard, full-size SIM found in earlier iPhone models. T-Mobile, for example, offers a micro-SIM card specifically for newer iPhones; just make sure to request one when placing your order.

5. Even once you’ve unlocked your AT&T iPhone, it still won’t work on Sprint or Verizon Wireless

 
That’s because Sprint and Verizon both run CDMA cellular networks—a technology that’s incompatible with the GSM networks operated by AT&T and T-Mobile.

Now, technically speaking, the new iPhone 4S is a so-called “world phone” that will connect to both CDMA and GSM networks; however, Apple has made it very clear that even an unlocked iPhone 4S won’t work on a CDMA carrier.

Still have questions? Let me know!

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Greetings, Jed, and glad you asked. First things first: when it comes to cell phones, “throttling” refers to the practice of a carrier intentionally slowing your wireless data speeds—usually because your carrier thinks you’re using too much data.

So, how much data is too much? That depends, of course. Most carriers say they’ll only throttle their heaviest data users, but stop short of setting a hard and fast limit—more on that in a moment.

And what happens if you do get throttled? Well, expect your carrier to restrict your smartphone to 2G data speeds—in other words, think the speed (or lack thereof) of an old dial-up modem. Once your next billing cycle begins, the leash will (generally) come off.

So, what are the respective throttling policies for the big four U.S. carriers? Let’s start with…

AT&T
Since October 2011, AT&T has been throttling the “top 5 percent” of its heaviest data users—but only for those users who have been grandfathered into AT&T’s old unlimited 3G plan, which is no longer available for new subscribers.

Related: Smartphone data plans compared

Since you’re on a “tiered” 2GB plan rather than an unlimited plan, Jed, you don’t need to worry about getting throttled for exceeding your 2GB monthly data limit. That said, you’ll still have to pay an extra $10 for every gigabyte you use above and beyond your 2GB data plan.

For those of you who still are on AT&T’s unlimited 3G plan, recent reports suggest you may be tagged as a “heavy” data user—and thus, subject to throttling—after using as little as 2GB of data within a billing cycle, which doesn’t leave much room for streaming music or video. Don’t like the threat of being throttled? Simple, AT&T says: just switch from an unlimited plan to one of its tiered data options.

Sprint
The last of the four big U.S. carriers with an unlimited 3G data plan swears up and down that it won’t throttle you under any circumstances, although there are some disgruntled subscribers who claim otherwise.

Keep in mind, though, that Sprint reserves the right to “deny or terminate service for any misuse or any use that adversely affects network performance.”

What constitutes misuse? Using your smartphone as a wireless modem without the proper tethering plan would probably qualify, as well as using heavy amounts of data while “roaming” on another network.

T-Mobile
Unlike AT&T and Verizon (which we’ll be getting to next), T-Mobile won’t charge you extra for exceeding your monthly data limit; instead, it’ll throttle your data to 2G speeds until your current billing cycle is up. In other words, throttling is less of a punishment for T-Mobile users than it is business as usual.

Related: Exceeded your monthly smartphone data limit? Here’s what you’ll pay

Verizon Wireless
The “Big Red” carrier claims it doesn’t throttle anyone. Instead, Verizon says, it employs “Network Optimization”—a system that uses “network intelligence” to slow down the data speeds of its heaviest users only “when necessary” rather than for the remainder of a billing cycle.

Well, “network optimization” is one way of putting it; in my book, though, deliberately slowing the data speed of a wireless user counts as “throttling,” even if it’s only done “when necessary.” So let’s just call “network optimization” what it is—”throttling”—and move on.

Anyway, Verizon may throttle any subscribers who are a) grandfathered into its old unlimited 3G smartphone plan (no, 4G LTE users won’t be affected), b) among the “top 5 percent” of data users in a month, and c) connected to a “congested cell site.”

How much data is too much? About 2GB or so, Verizon says, although that figure is subject to change. To find out if your data speeds are being slowed, you’ll need to check for a notice on your bill, or on the home page of your online Verizon account.

Hope that answer your questions, Jed. Have more? Post ’em in the comments below.

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Each of the biggest U.S. carriers has its own overage policies, and it’s pretty much a case of pick your poison.

The sole exception: Sprint, the last of the big four U.S. carriers to offer unlimited (well, more or less—more on that in a moment) 3G and 4G smartphone data.

AT&T
If you’re signed up for one of AT&T’s cheaper plans, such as the $15-a-month, 200MB Data Pro plan (which is on the way out, at least as far as new subscribers are concerned) or the upcoming, $20/month 300MB Data Plus option, AT&T will charge you for another month’s worth of data if you exceed your standard monthly allowance.

In other words, if you’re on the $15-a-month 200MB Data Pro plan and you use 201MB of data in a single billing cycle, you’ll see a $30 data charge—the standard $15 fee, plus $15 in overage—on your bill.

For AT&T’s pricier plans, including the $25 2GB Data Pro plan (which, like the old 200MB Data Pro plan, won’t be available to new customers as of January 22), or the new 3GB or 5G options (for $30 and $50 a month, respectively), expect to pay $10 for each additional GB of data you use above and beyond your monthly data cap.

Related: Smartphone data plans compared: Bargain plans becoming more and more scarce

Sprint
It may be the last bastion of unlimited 3G and 4G smartphone data among the big four U.S. carriers, but that doesn’t mean Sprint will let you go nuts with downloads on your iPhone or Android handset.

Like most carriers (such as AT&T, for example), Sprint has a clause in its wireless service agreements that gives it the option of throttling or even cutting off bandwidth hogs who “generate excessive amounts of Internet traffic.” It’s worth noting, though, that Sprint CEO Dan Hesse claims that “98-99 percent” of users will never run afoul of the carrier’s “terms and conditions.”

T-Mobile
The old “Get More” labels several of its smartphone 3G and 4G plans as “unlimited,” and they are … sort of.

Subscribers to T-Mobile’s Unlimited Plus (2GB of “high speed” data for $20 a month), Premium (5GB for $30 a month), and Ultra (10GB for $60/month) smartphone data plans can, indeed, surf as much as they like without fear of paying any overage charges.

But the devil’s in the details—and in this case, the key detail is “high speed” data.

If you’re a T-Mobile unlimited data user and you exceed your monthly allowance, you can kiss your speedy 3G or 4G data goodbye, as the carrier will “throttle” your data speed to 2G levels (think dial up-modem speed) for the rest of your billing cycle.

On the other hand, T-Mobile’s dirt-cheap, “Simple” plan, which offers 200MB of data a month for a mere $10 a month, isn’t an unlimited plan at all; instead, expect to pay 10 cents for every extra megabyte you use—or roughly double the rate of your initial 200MB data allowance.

Verizon Wireless
The biggest wireless carrier in the U.S. has one rule when it comes to data overages: $10 for every extra GB of data over your monthly limit, period.

Have more questions about your smartphone bill? Let me know!

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And while pricier 3G and 4G data plans do—on paper, anyway—offer more bang for your wireless buck, chances are you’re not using enough mobile data to reap any real benefit.

First, some news. As of Sunday, January 22, AT&T is scratching its $15-a-month, 200MB “Data Plus” plan from its list of options for new customers. (If you’re currently signed up for AT&T’s 200MB Data Plus plan, don’t worry—you can keep it, at least for the time being.)

That leaves T-Mobile as the sole, nationwide U.S. carrier with a sub-$20 monthly data plan for smartphones.

For $10 a month, you can sign up for T-Mobile’s “Simple” data plan, which offers 200MB of data per month.

(Note: T-Mobile’s big U.S. competitors also offer cheaper data plans for as little as $10, but only for so-called “feature” phones, not smartphones.)

The next cheapest smartphone data option for new customers is AT&T’s new Data Plus 300MB plan, which serves up 300MB for $20 a month.

After that, the smartphone plans from the biggest U.S. carriers, including AT&T, Sprint, T-Mobile, and Verizon Wireless go up and up.

Verizon’s cheapest smartphone data plan, for example, goes for $30 a month for 2GB, while Sprint—the last big U.S. carrier with a truly unlimited data plan for smartphones—offers nothing but unlimited data bundles, starting at $80 a month (including a $10-a-month “premium data” fee) for all-you-can-eat data, 450 voice minutes, and unlimited text messages.

Click chart to expand

Of course, the pricier the data plan, the more bang you get for your wireless buck—well, theoretically, anyway.

Related: How big is a GB, anyway?

Indeed, one of the worst values among the smartphone data plans in my little survey is among the cheapest: AT&T’s soon-to-expire, $15-a-month Data Plus 200MB, which comes out to a relatively hefty 7.5 cents per megabyte.

AT&T’s new Data Plus 300MB plan offers a slightly better value at 6.6 cents a MB, but that’s more than a cent and a half per megabyte higher than T-Mobile’s competing $10-a-month, 200MB “Simple” data plan.

And the more you spend, the better the value. AT&T’s Data Pro 5GB plan offers 5GB of monthly data, plus the ability to use your smartphone as a mobile Wi-Fi hotspot (more on that in a moment), for $50—or a cent per megabyte.

Up the ante even more, and the value gets better. Take Verizon’s $80-a-month 10GB data bundle, which comes out to 0.8 cents a megabyte, or T-Mobile’s “Unlimited Ultra” plan, which delivers 10GB of “high speed” data for $60 a month, or just 0.6 cents per MB.

But here’s the thing: getting great value per MB on a 10GB, 5GB, or even 2GB monthly data plan doesn’t mean much if you’re not using all your monthly data.

And according to a Consumer Reports survey from last summer, most of us don’t even come close.

Related: Which data plan should I get for my iPhone?

In fact, the survey found that the average smartphone user on AT&T consumed only about 360 MB of data a month. And when considering only “median” smartphone data use (or the largest group of users in the middle of the range), the figure for monthly AT&T data usage fell to a mere 120 MB, well shy of the 3GB data cap on AT&T’s new $30-a-month, 3GB Data Pro plan.

That’s why it’s worth checking your monthly bill or calling your carrier to see just how much data you’re using on your smartphone each month.

Are you using less than 300MB or 200MB of wireless data a month? If so, you might be better off with a cheaper data plan, even if it doesn’t offer the same value per MB as a pricier option. And if you’re using 2GB or more data a month, then hey—time to cash in on the values offered by pricier data plans.

The good news is that most carriers will let you change your monthly data plan even if you’re still under contract; the bad news, though, is that you might not have many bargain options, particularly if you’ve signed up with Sprint or Verizon.

There’s yet another key variable to consider when it comes to picking a smartphone plan: overage charges, which you can read about right here.

Got smartphone questions? Post ’em below!

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The cheapest 16GB iPhone 4S costs a whopping $649, or a full $450 more than a carrier-locked version.

Meanwhile, the 32GB iPhone 4S goes for $749 (versus $299 with a two-year carrier contract), while the 64GB model sells for $849 (compared to $399 through a carrier). Ouch.

Now, Apple is billing the iPhone 4S as a “world phone” that works on worldwide GSM and CDMA networks.

But on its website, Apple specifies that the unlocked iPhone 4S will not work on CDMA carriers like Sprint or Verizon Wireless.

Related: Why the “unlocked” version of the iPhone 4S won’t work on Sprint or Verizon

The restriction also applies to pre-paid carriers Boost Mobile and Virgin Mobile, which both operate on CDMA networks.

Standard SIM card and the iPhone 4S's smaller micro-SIM, compared

To hop from one carrier to another using the unlocked iPhone, you’ll need a micro-SIM card: a little plastic module that identifies a phone on a given carrier’s network.

You can typically request a micro-SIM card for a nominal fee (as in a few bucks or so) from the GSM carrier of your choice, although you’ll need a data plan (either pre-paid or post-paid) to go with it.

While you can buy an iPhone 4S from a carrier for hundreds less than the unlocked version, you’ll have to sign a two-year service contract to do so.

Also, the handset will be “locked” to the network of the carrier you bought it from, meaning you won’t be able to swap micro-SIM cards to jump from one network to another.

Got questions about the unlocked iPhone—or about unlocked phones in general? Post ’em below.

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Hi Jo Ann! So, AT&T’s new $50 unlimited pre-paid GoPhone plan includes unlimited calling, texting, and web access. And since web access is all you need to check Gmail on your phone, you should be all set, right?

Well, here’s the thing. AT&T only offers unlimited web access through its $50 GoPhone plan if you’re using a basic “feature” phone. If you get a smartphone, you’ll have to pay extra for web and data access.

How much extra? Here are the details:

• 10 MB for $5 a month
• 100 MB for $15/month
• 500 MB for $25/month

So, how much data would you need? Well, that depends. The $5-a-month, 10 MB data plan is barely enough to browse 50 web pages on your phone, so you’d have to keep your Gmail use to a bare minimum.

Upping your plan to 100 MB for $15 a month would give you enough headroom for more web browsing and Gmail checking, while the $25/month plan would be enough to download 100 songs, or stream a Netflix movie. Once you hit the data limit, though, you’d have to pony up for another monthly data package.

Bottom line? If you want Gmail access through AT&T’s $50 unlimited GoPhone plan, make sure you get a feature phone and not a smartphone. Otherwise, prepare to pay up.

Still have questions? Let me know!

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Bloomberg reports that the Justice Department is moving to block the proposed merger, arguing that the “elimination of T-Mobile as an independent, low-priced rival would remove a significant competitive force from the market.”

When it first announced the proposed merger, AT&T claimed that the U.S. mobile market was already “fiercely” competitive,” and that AT&T customers would see better service and lower prices once the carrier added T-Mobile’s wireless infrastructure to its own.

But consumer advocates quickly lined up against the pending AT&T/T-Mobile deal, warning that it could “lead to a wireless telephone market reduced to two principal players” (presumably AT&T and Verizon Wireless, with Sprint potentially fading to a distant third) that would “lack the proper incentives to provide competitive prices, service, and … innovation.”

Personally, I’m not thrilled with the idea of T-Mobile disappearing into the maw of AT&T. The “Get More” network offers some of the cheapest wireless plans in the business, not to mention some snazzy phones. And in general, more competition is better for consumers like you and me.

That’s just my take, though. What about you—do you think the AT&T/T-Mobile merger should go through, or is the Justice Department right to stop it in its tracks?

Update: Here’s AT&T’s response to the Justice Department’s action:

We are surprised and disappointed by today’s action, particularly since we have met repeatedly with the Department of Justice and there was no indication from the DOJ that this action was being contemplated.

We plan to ask for an expedited hearing so the enormous benefits of this merger can be fully reviewed. The DOJ has the burden of proving alleged anti-competitive effects and we intend to vigorously contest this matter in court.

At the end of the day, we believe facts will guide any final decision and the facts are clear. This merger will:

• Help solve our nation’s spectrum exhaust situation and improve wireless service for millions.
• Allow AT&T to expand 4G LTE mobile broadband to another 55 million Americans, or 97% of the population;
• Result in billions of additional investment and tens of thousands of jobs, at a time when our nation needs them most.

We remain confident that this merger is in the best interest of consumers and our country, and the facts will prevail in court.

And here’s the response from Sprint, which is understandably eager to avoid being ganged up on by AT&T and T-Mobile:

The DOJ today delivered a decisive victory for consumers, competition and our country. By filing suit to block AT&T’s proposed takeover of T-Mobile, the DOJ has put consumers’ interests first. Sprint applauds the DOJ for conducting a careful and thorough review and for reaching a just decision – one which will ensure that consumers continue to reap the benefits of a competitive U.S. wireless industry. Contrary to AT&T’s assertions, today’s action will preserve American jobs, strengthen the American economy, and encourage innovation.

LINK: U.S. Files Antitrust Complaint to Block AT&T, T-Mobile Merger

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That’s bad news for those of us who don’t send and receive, say, 100 messages a day, and based on a quick survey of the post-paid messaging plans offered by the other big carriers, unlimited messaging plans are increasingly becoming the norm rather than the exception.

In other words, the days of getting monthly “buckets” of, say, 200 or 500 messages seem to be numbered.

The scoop on AT&T’s “streamlining” of its messaging plans comes from Engadget, which confirmed the news with AT&T and adds that the changes will take effect August 21.

AT&T also promises that current customers will get to keep their existing messaging plans (including the soon-to-be-extinct $10-a-month plan for 1,000 messages), even if they decide to change phones.

The other big carriers also seem eager to sign us all up for unlimited text/picture messaging plans, while at the same time weaning us off unlimited data for our smartphones.

So, what exactly are our messaging options for the big four U.S. carriers: AT&T, Sprint, T-Mobile, and Verizon Wireless?

I surfed around the various carrier sites and culled a few facts and figures, with the chart below taking AT&T’s upcoming plan changes.

First of all, check out the prices for paying per message. Twenty cents each, both to send and receive? Yikes—and that’s just for text messages, with AT&T charging as much as 30 cents per picture message.

Also, limited buckets of messages are becoming increasingly scarce. AT&T and T-Mobile don’t offer them at all, while Sprint and Verizon only offer a couple buckets each. (Verizon Wireless’s $20-a-month, 5,000-message bucket is intended for those on family plans, by the way, while individual lines can get unlimited messaging for the same price.)

The biggest bargain? T-Mobile’s $10-a-month unlimited messaging plan for individuals. Verizon Wireless, on the other hand, will only give you 500 messages for $10 a month.

While Sprint and T-Mobile will sell your separate individual and family messaging plans, they’re also seriously hyping their unlimited bundles (which include different combinations of voice, data, and messaging), with each carrier offering bundled unlimited plans starting at $49 a month.

Overall? Like it or not, the big carriers seem to be pushing us all toward unlimited messaging plans—and hey, that’s great for those who send thousands of SMS messages a month, but it’s not so wonderful for anyone (like me, frankly) who only needs to fire off a text or two a day.

So, what about you? Do you have an unlimited messaging plan or a bucket of messages—or do you pay per message?

(Photo credit: iStockPhoto)

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Yes indeed, it appears that AT&T cellular customers in the Big Apple haven’t been able to make or receive phone calls from anyone since early Thursday morning, reports NBC New York. An AT&T rep blamed the outage on a “software upgrade,” the story adds.

Text messages and 3G data service still seemed to work as of about 8:30 a.m. ET, but for now … no voice calling, at all. Great.

Anyone else in New York having trouble making calls on AT&T?

Update (9:45 a.m. ET): Here’s an official statement I just received from an AT&T spokesperson:

Due to a software issue that occurred during routine maintenance activities, some customers on Long Island may be experiencing 3G wireless voice service disruption. We are currently working to move some 3G voice traffic to our 2G network to restore service to our customers while we resolve the 3G voice issue. We will provide more information as it becomes available and apologize for any inconvenience to our customers.

The spokesperson added that the outage is “not affecting Manhattan,” by the way. (True?)

Update #2 [11 a.m. ET]: AT&T service appears to be returning to normal. I’ve also received a new statement from AT&T, which is now saying that Manhattan (or “parts” of it, anyway) was affected by the outage:

Due to a software issue that occurred during routine maintenance activities, some customers on Long Island and in parts of Brooklyn, Queens, and Manhattan may have experienced 3G wireless voice service disruption earlier this morning. The issue has since been resolved, and all service is running normally at this time. We apologize for any inconvenience to our customers.

So, anyone still having trouble?

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Unless you’re on Sprint, there’s a good chance your cell phone carrier has you on a short leash when it comes to speedy wireless data.

Indeed, most carriers now limit, or “cap,” their 3G and 4G data plans at levels ranging from 200 MB to 10 GB a month, and they’ll charge you extra if your creep over your monthly limit. (Not sure how big a megabyte or a gigabyte is? Click here for help.)

But here’s the thing: according to a recent Consumer Reports survey, you might actually be using a lot less smartphone data than you think—and that means you may be paying more on your data plan than you need to be.

Indeed, the survey found that the average smartphone user on, say, AT&T, used only about 360 MB of data a month—a figure that’s skewed by a “small percentage” of data hogs downloading huge amounts of data onto their phones.

When considering only “median” smartphone data use (that is, the largest group of users smack in the middle of the range), the figure for monthly AT&T data usage falls to a mere 120 MB.

That means the typical AT&T subscriber could safely downgrade to the carrier’s $15, 200 MB-a-month “DataPlus” plan with room to spare.

The median Verizon Wireless smartphone user consumed slightly more data than those on AT&T—think 158 MB a month rather than 120 MB, according to Consumer Reports. Meanwhile, median data use on T-Mobile was a mere 48 MB a month.

Surprised? I certainly was, although I figured that my own smartphone data use was probably somewhat above the mean.

Well … turned out I was only half-right. Logging into my account over the AT&T web site, I found that I’d used less than 100 MB of data a month for February and March, and just a little more than 200 MB each in April and May. In June, my iPhone 3G data use slipped to about 150 MB, although it skyrocketed to a whopping 923 MB in July—but only because I’d been performing a little 3G battery-drain test.

So, what does all this mean to you? Well, consider checking with your carrier to see how much wireless data you’re really using each month. You can log into your account online, or just call and check with customer service.

Once you’ve figured out how much data you’re using each month, check out your carrier’s data-plan options.

Using less than 200 MB of data a month? Maybe you should switch to a cheaper 200 MB smartphone plan, provided your carrier offers one. (AT&T and T-Mobile do, for $15 and $10 a month, respectively; Sprint and Verizon don’t; check out this post for more details.)

Source: Consumer Reports

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