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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Linda writes: I was wanting to buy the unlocked version of the iPhone 4S for my son for Christmas but wasn’t sure if the phone was compatible with the carrier in our area. Help!

Hi Linda! So, here’s the thing with the unlocked iPhone: it will only work with a carrier that operates a GSM (or “Global System for Mobile Communications”) network, and not on carriers with CDMA (“code division multiple access”) networks.

Here in the United States, for example, the unlocked iPhone 4S will work on AT&T or T-Mobile, which are both GSM carriers, but not Sprint or Verizon Wireless, which are CDMA carriers.

Related: Why AT&T and T-Mobile phones won’t work on Sprint or Verizon (in the know)

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

How can you tell whether your carrier is GSM or CDMA? Simple. A GSM carrier uses something called a SIM (short for “Subscriber Identification Module”) card to identify a specific phone on its network. These little plastic chips can be swapped in and out of a GSM-based phone, allowing it to connect to the particular network to which a given SIM card is tied.

So, if you’re curious whether your carrier runs a GSM network, just check your cell phone for a SIM card slot; it might be on the side of the phone (as in the case of the iPhone), or inside the handset itself, usually behind the removable back panel and near the battery.

Can’t find a SIM card? Then you might have a CDMA-based phone, which doesn’t use a SIM card—and that means your carrier runs a CDMA network. (If in doubt, you could always just call your carrier and ask, of course.)

Side note: The new iPhone is, in fact, a so-called “world phone” that will connect to both GSM and CDMA networks. That said, Apple has specified that the unlocked iPhone 4S will only work on GSM networks.

If you do decide to get an unlocked iPhone 4S for your son (lucky him!), you’ll need a special type a SIM card from your local carrier: a “micro-SIM,” which is basically a smaller version of a SIM card. Be sure to make the distinction when placing your order, as a regular SIM card won’t fit in the iPhone 4S.

Still have questions? Let me know!

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Update: Apple confirmed its new, unlocked iPhone for the U.S. early Tuesday; get the details right here.

So, here’s the thing: Any cell phone you buy directly from a carrier—be it AT&T, Sprint, T-Mobile, or Verizon Wireless—has been programmed to work only on that carrier.

That means, for example, that you can’t take your iPhone from AT&T, replace the little plastic SIM card (a thin, removable chip that identifies a phone on a carrier’s network) in the phone with a T-Mobile SIM card, and start making calls on T-Mobile’s network.

An unlocked cell phone, on the other hand, isn’t married to a particular network—and that means you can swap in a SIM card from any carrier, on the fly.

So, when would an unlocked phone come in handy? At home, you’d be able to switch from AT&T to T-Mobile at a moment’s notice. Even better, globetrotters could skip pricey international calling plans in favor of cheap, pre-paid SIM cards available at local convenience stores.

An AT&T SIM card in an older iPhone 3GS. On the iPhone 4, you'll find the SIM card slot on the right side of the handset.

Wondering why I haven’t mentioned Sprint or Verizon yet? That’s because those two carriers use a cellular network technology called CDMA, which doesn’t use removable SIM cards. Instead, CDMA phones must be specifically programmed to work on a specific carrier—and unfortunately, that means our whole “unlocking” discussion doesn’t really apply to them.

(By the way: CDMA networks, like those run by Sprint and Verizon, are incompatible with the other main variety of cellular networks, GSM. So, for example, don’t ever expect to get your GSM-based AT&T iPhone to work on Verizon’s CDMA network.)

So, back to the unlocked iPhone rumor. 9 to 5 Mac is reporting that Apple might—just might—be releasing an unlocked version of the iPhone 4 on Wednesday.

Both black and white flavors of the 16GB and 32GB iPhone 4 may be going the unlocked way, 9 to 5 Mac claims.

Apple has been selling unlocked iPhones abroad for some time, but we’ve yet to see any available here in the States.

How much would an unlocked iPhone cost? Brace yourself. Because unlocked cell phones are sold without two-year service contracts, you won’t get the benefit of carrier subsidies—so instead of $200 or $300 for an AT&T or Verizon iPhone 4, an unlocked may set you back $600 or more. Ouch.

Anyway, I’ll be keep my eyes peeled for any official word on Wednesday (and keep in mind, rumors about an unlocked iPhone for the U.S. have come—and gone—before). Stay tuned.

Have any questions about unlocked phones? Let me know!

Source: 9 to 5 Mac

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